Kenyans took to the streets of Nairobi on Tuesday, June 18, to protest over punitive tax proposals that they said would erode disposable incomes and adversely affect the quality of their lives.
Among the contentious provisions in the Finance Bill — which will be debated in the National Assembly on Wednesday, June 19 — is one requiring motor vehicle owners to pay a 2.5 per cent tax on the insurance value of their vehicles. The insurance industry players, together with motorists, opposed the proposal, saying it would erode insurance penetration and make it uneconomical to own a motor vehicle.
Another contentious clause was a proposal to tax mobile money transactions — a move that would have reversed the gains Kenya has made in deepening financial inclusion — and which has been credited with reducing poverty and inequality by facilitating money transfers from workers to their less well-off dependents, including parents.
Kenyans had also opposed an eco levy that would have been charged on products with plastic packaging, saying this would raise the cost of most goods, including foods and drinks. The government yesterday said this levy will only be charged on imported goods.
Protesters took to the streets of Nairobi, paralysing operations in the Central Business District, as they demanded that the taxes be dropped.
Operating under the banner of “Occupy Parliament”, protesters started gathering as early as 8am to picket outside the National Assembly, where the Finance Bill was to be tabled ahead of debate and voting on Wednesday and Thursday.
“The entire Bill is unconstitutional and MPs must reject it,” chanted protesters, who engaged police in running battles for much of the day, leading to closure of businesses, including banks and shops, in the area between Moi Avenue and the General Post Office.
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Earlier in the day, the chairman of the Budget Committee, Molo MP Kuria Kimani, said Parliament had listened to the will of Kenyans and dropped the contentious taxes except where they affect imported goods.
Among the taxes he said would be removed from the Finance Bill was one on rubber products, which would have raised the cost of tyres, including vehicle, motorcycle, wheelbarrow and handcart tyres. This has been dropped.
“VAT on transportation of sugarcane from farms to the milling factories has also been removed,” Mr Kimani said at State House, Nairobi, after a meeting between President William Ruto and UDA legislators.
Other changes include to the Housing Tax, which will now become tax deductible and exemption of small businesses with revenues below Sh8 million from a requirement to register for Value Added Tax.
“The exercise we did on public participation was not an exercise in futility,” Mr Kimani said at a press conference attended by the President.
Following the arrest of several protesters, Embakasi East MP Babu Owino gave the Inspector-General of Police, Japheth Koome, 24 hours to release the suspects unconditionally, failure to which he would institute legal proceedings against him in his personal capacity.
And Ms Faith Odhiambo, the Law Society of Kenya President, criticised the police, accusing them of using excessive force in dealing with the protesters.
“Police have decided to teargas Advocates and Law Society of Kenya Council members who were at the Central Police Station seeking the release of innocent protestors. This is a new low for the National Police Service,” said Ms Odhiambo on X.
“Our resolve remains unchanged, we must stamp out impunity”.
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