Kenya is set to reintroduce a modified version of its controversial eco-levy tax, potentially reigniting tensions that led to widespread protests earlier this year. The Treasury Secretary has confirmed that dozens of new tax measures are being considered as part of a forthcoming amendment bill.
eco-levy, aimed at tackling pollution and improving waste management, is back on the table but with some adjustments. Notably, sanitary products have been excluded from the tax this time around, addressing one of the major criticisms of the original proposal.
However, the government is standing firm on its plan to impose a 10% levy on locally manufactured plastics, despite opposition from major companies like Coca-Cola. The Treasury Secretary has taken a tough stance, asserting that Kenya won’t be a “dumping place” and that companies causing environmental harm must pay for the damage.
In addition to the eco-levy, the government is looking to boost tax collection by extending the tax amnesty period. These moves come after the cancellation of the Finance Bill 2024 in June, which followed deadly anti-tax protests that forced President William Ruto to reconsider the budget.
The revival of these tax plans has already drawn criticism from opposition leaders, who are urging the judiciary to resist what they see as an attempt to reintroduce rejected policies. As Kenya grapples with the need to increase revenue while managing public discontent, the coming weeks are likely to be crucial in shaping the country’s fiscal and political landscape.