Kenyans complain about new tax proposals

On today's morning show, Mike Mondo discussed the new finance bill, its impact on Kenyans, and people's opinions on it.

Recently, President Ruto introduced a new finance bill for the country. In this bill, the Kenya Revenue Authority (KRA) is proposed to access people’s M-Pesa and bank accounts as a measure to combat tax evasion.

Many Kenyans are upset about this because it compromises their privacy and seems like an excessive taxation measure.

Kenyans have varying perspectives, with some arguing that the proposed 2024/25 finance bill is fueling corruption, diverting taxes looted through corruption to finance projects for 2024/25 and beyond.

The finance bill contains several tax proposals aimed at increasing revenue and funding government projects.

It introduces various changes, including an increase in the value-added tax (VAT) on bread, vodka, and whiskey.

Additionally, a new vehicle tax is proposed, set at 2.5% of the vehicle value, with a minimum amount of Ksh5,000.

Gamblers will also face higher taxes, as the bill proposes an increase in excise duty on betting from 12% to 20%.

Moreover, there are plans to raise mobile money and bank transaction costs, potentially encouraging people to use cash instead.

These details have emerged as President Ruto's administration moves to implement new tax measures, which many Kenyans believe will disproportionately affect the poor and middle class.

Citizens are expressing concern, with some feeling powerless against the government's actions.

Senator Omtatah from Vihiga urged Kenyans to read and provide feedback on the finance bill, emphasizing the importance of public engagement in shaping change.

He said, “Public awareness is crucial in initiating any kind of change...I encourage everyone to closely examine the proposals and share their views.”