Home Economy Kenyans prepare for tough month ahead as Ruto enacts finance bill

Kenyans prepare for tough month ahead as Ruto enacts finance bill

155
0
President William Ruto signing the Finance Bill to law at State House, Nairobi on June 26, 2023. PHOTO | COURTESY | PCS
President William Ruto signing the Finance Bill to law at State House, Nairobi on June 26, 2023. PHOTO | COURTESY | PCS

Kenyan President William Ruto signed a bill into law that increases taxes on a wide range of items, despite concerns about the additional economic burden on citizens.

The newly approved tax package, which doubles the tax on fuel to 16 percent and introduces a new housing levy, is expected to have a ripple effect in a country grappling with high inflation.

The law aims to replenish the government’s depleted coffers and address the heavily-indebted economy inherited from Ruto’s predecessor, Uhuru Kenyatta.

With Kenya facing a public debt of nearly $70 billion, the law is projected to generate over $2.1 billion through increased taxes on basic goods and services, as well as income tax adjustments.

However, the opposition has criticized the bill, warning of potential strain on already squeezed incomes and threatening further demonstrations. The Law Society of Kenya has also expressed its intention to challenge the law in court.