Kenya Plans Reinstatement of Controversial Taxes

Kenya's government is set to reintroduce tax measures previously scrapped due to violent protests, aiming to raise about $1.2 billion through approximately 49 tax measures. Finance Minister John Mbadi announced that an eco-levy will be imposed on non-essential goods while excluding sensitive items like sanitary pads to mitigate public backlash. President William Ruto initially dropped the controversial tax hikes in June after intense protests in Nairobi, which included police using live ammunition against demonstrators. The government is facing a funding shortfall, prompting Mbadi's remarks about the need for these fiscal measures to cover expenses such as teachers' salaries. The new tax amendment bill is expected to be implemented by the end of September, following the earlier scrapping of a finance bill intended to raise $2.7 billion. Global rating agencies have since downgraded Kenya's credit rating due to concerns over its ability to manage its substantial public debt.