In 2024, Kenya has been witnessing a significant civil unrest due to the government’s proposed finance bill. The bill, which includes tax hikes, has sparked widespread protests across the nation. The situation escalated when thousands of protesters stormed the parliament, leading to a fire in part of the building and a violent confrontation with the police, who reportedly used live ammunition. The protests, primarily led by the youth, reflect a deep-seated frustration with economic policies perceived as unfair, particularly to younger generations.
The finance bill, which has now been approved by the parliament and awaits the president’s signature, has been the focal point of the protests. Demonstrators have used social media to organize and voice their opposition, with hashtags like #RejectFinanceBill2024 and #OccupyParliament gaining traction. The unrest is not just confined to Nairobi; it has spread to several other cities and towns, indicating a nationwide dissent against the proposed tax increases.
Here is a detailed look at the specific amendments:
Tekedia Mini-MBA edition 15 (Sept 9 – Dec 7, 2024) has started registrations; register today for early bird discounts.
Tekedia AI in Business Masterclass opens registrations here.
Join Tekedia Capital Syndicate and invest in Africa’s finest startups here.
Value Added Tax (VAT) Adjustments: The bill initially proposed a 16% VAT on essential commodities like bread and the transportation of sugar cane, which was met with public outcry. Following the protests, these measures were removed.
Excise Duty Revisions: The government had proposed an excise duty on vegetable oil, which would have increased the price of cooking oil by 80%. This proposal was also retracted after public disapproval.
Financial Services and Transactions: The bill sought to impose VAT on financial services and foreign exchange transactions, potentially increasing taxation on these services from 15% to 40%. This measure was removed in the revised bill.
Mobile Money Transfer Charges: An increase in excise duty from 15% to 20% on mobile money transfer charges was proposed. However, this was reversed in the face of strong opposition from the public.
Motor Vehicle Tax: A new motor vehicle tax was proposed, requiring vehicle owners to pay annually 2.5% of their car’s value. This proposal was met with immense uproar and was subsequently removed.
Housing Fund and Social Health Insurance Levies: These levies were converted to tax deductibles, meaning they will not attract income tax, which puts more money in the pockets of employees.
Eco Levy: The proposed Eco Levy was adjusted to be levied only on imported finished products, sparing locally manufactured products from this tax.
The response from the authorities has been severe, with reports of multiple fatalities and injuries as a result of police action. This has only added fuel to the fire, with human rights organizations expressing concern over the use of force against protesters. The government’s stance on the protests and the subsequent crackdown has drawn criticism both domestically and internationally.
The protests in Kenya are a manifestation of the citizens’ exercise of their democratic rights to peaceful assembly and expression. They highlight the importance of dialogue between the government and the populace, especially when implementing policies that have far-reaching impacts on the livelihoods of the people.
As the situation develops, it remains crucial for all parties to engage in constructive discussions to find a resolution that considers the welfare of the Kenyan people and upholds democratic values. The world watches as Kenya navigates through this period of political and social upheaval, hoping for a peaceful and equitable outcome.