Kenyans are protesting a new financial law that introduces unpopular tax proposals that have sparked widespread outrage across the country.
The controversial bill, which contains provisions that are seen as imposing additional burdens on ordinary citizens and businesses, has provoked a huge outcry from a public already burdened by the high cost of living.
It triggered youth-led protests that, while largely peaceful, caused at least one death and hundreds of injuries, as well as arrests – all of which were condemned by lawyers and rights groups.
The government abandoned some of the controversial proposals, but did little to quell public outrage.
Many now want the entire project to be cancelled.
On social media, there have been calls for protests and demands that lawmakers oppose tax increases.
What were some of the original plans that provoked anger?
Amendments to the bill appear poised for passage, but some of the controversial provisions initially put forward included a plan to introduce a 16% sales tax on bread and a 25% tax on cooking oil.
An increase in the tax on financial transactions was also planned, as well as a new annual tax on vehicle ownership worth 2.5% of the vehicle’s value.
The government said it was abandoning these measures amid public protests.
The ecological tax, described as a tax on products that contribute to electronic waste and harm the environment, was another important provision of the bill to which the government has now suggested amendments.
Critics pointed out that this would lead to an increase in the cost of essential items such as sanitary pads, which was seen as insensitive as there are many girls who, unable to afford these products, often miss school during their periods.
Babies’ diapers would also be affected.
After protests, the government said the tax would only apply to imported products, arguing that this would boost the growth of local industries.
The other main target of this green tax is digital products, including mobile phones, cameras and recording equipment, as well as television and radio equipment. An increase in the cost of these products is seen as detrimental to the growth of the digital economy, which many Kenyans depend on for their livelihoods.
What are some of the measures that remain untouched?
The finance law introduces a 16% tax on goods and services for direct and exclusive use in the construction and equipment of specialized hospitals with a minimum capacity of 50 beds.
Many Kenyans have been concerned that this could mean higher costs to access critical health services for cancer, diabetes, kidney dialysis or other chronic illnesses.
The chairman of the parliamentary finance committee, Kuria Kimani, rejected allegations that “the bill introduces taxes on cancer patients”, describing them in parliament as “falsehoods to excite the public”.
The project proposes to increase the import tax rate from 2.5% to 3% of the item’s value, to be paid by the importer at the port.
The increase comes just one year after the rate was reduced from 3.5% to 2.5%. The move is expected to generate additional revenue for the government, but could also lead to higher prices for imported products.
What has been the government’s response?
As well as withdrawing some of the most controversial measures, President William Ruto has acknowledged the protests and promised he will hold talks to address the concerns of young people at the forefront of the demonstrations.
But this did little to calm tensions.
Why is this not seen as good enough?
Despite the elimination of some of the proposed measures, others remain – including an increase in import duty and an increase in the road maintenance fee charged on fuel.
But it is also a feeling of anger that has been simmering for a long time.
Some exasperated Kenyans, who feel overwhelmed, do not think the government has taken their concerns into consideration.
Mr Ruto argued that, compared to some other African countries, Kenya has a relatively low tax rate – but this did not convince many.
Daily conversations, which were already dominated by the pain of taxation, have now reached a crescendo.
This year’s finance law was not the first unpopular one under the Ruto government.
Last year’s equivalent, which also sparked protests, introduced a series of unpopular taxes that the current plan adds, compounding the pain.
Angry protesters would prefer the government to reduce its spending, as many Kenyans have had to do in times of economic crisis, and address waste and corruption.
In the past, the government said it was pursuing this goal, but failed to convince many that enough was being done.
What happens next?
On Tuesday, lawmakers are considering and voting on the government’s amendments to parts of the bill, which was approved by parliament last week.
The government coalition has sufficient numbers in parliament to allow approval of the amended bill. Once approved, the president will have to sanction it within 14 days or return it to parliament with a proposal for new changes.
Although unlikely, the government could also opt for other measures in an attempt to neutralize the pressure, including delaying the law.
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