The Kenyan government, led by President William Ruto, plans to raise approximately $1.2 billion by reinstating certain taxes from a finance bill that was previously scrapped due to violent street protests.
Finance Minister John Mbadi announced that about 49 tax measures are being considered, including the reintroduction of an “eco levy” on electronic goods and plastic packaging to help reduce environmental waste.
The original finance bill, which was set to raise around $2.7 billion, was dropped after significant public unrest and clashes in Nairobi.
In response to the funding shortfall, Ruto’s administration implemented spending cuts and increased borrowing. The new tax measures are expected to be in place by the end of September.
The cancellation of the 2024 finance bill led to global ratings agencies, Moody’s and Fitch, downgrading Kenya’s credit rating due to concerns about the government’s ability to manage its $78 billion public debt.
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