Kenya Revives Contested Tax Hikes Amid Economic Pressures

INSUBCONTINENT EXCLUSIVE:
The government is struggling with a debt of about $80 billion
This financial burden necessitates drastic measures.The proposed tax changes target various sectors of the economy
They include hikes in Value Added Tax (VAT) and new levies on digital services
Gig economy workers, such as food delivery drivers, will face income tax for the first time.These proposals have sparked concerns among
Kenyans
Many citizens are already grappling with high living costs
A third of the population lives below the poverty line.Kenya Revives Contested Tax Hikes Amid Economic Pressures
(Photo Internet reproduction)The potential for renewed unrest looms over these tax plans
Previous protests against similar measures turned violent
Dozens of protesters faced arbitrary arrests
The government plans to submit these new tax proposals to parliament soon.Local media outlets have published details of the plans
President Ruto is expected to address the nation regarding these proposed changes.The withdrawn 2024-25 budget had proposed record spending
It relied heavily on tax increases, particularly on fuel
The current proposals aim to increase revenue while managing economic growth and social welfare.In a separate development, Kenya swore in a
new Vice President
Abraham Kithure Kindiki replaced Rigathi Gachagua after weeks of political maneuvering.Gachagua faced criticism for supporting police
actions during tax protest crackdowns
under scrutiny