Wide ranging protests were arranged in Kenya over the weekend, and have continued into the week to protest the recently proposed new Finance Bill 2024, with many calling for the resignation of president Ruto.
The bill, that has not yet been signed into law yet, but has been signed off by the Kenyan parliament, will see additional taxes imposed on a wide range of companies and services including Tech, internet data services and e-payment services that are to be affected, in turn affecting affordability.
The electric vehicle sector, that has seen positive growth in Kenya, alongside e-commerce, Telco and e-hailing ride companies, these as well as data services, are all set to be hit with additional taxation, and this has prompted condemnation from Tech business leaders and entrepreneurs and the public.
The largest mobile network operator, Safaricom, who operates the popular M-Pessa money payment system, utilised by over 16 million Kenyans, has stated that the proposed 20% excise duty on the service, as well as internet data will be devastating to the average citizens of Kenya. A 10% excise duty had already been imposed as of February this year and additional charges will make this untenable.
The impact of the new taxes will particularly affect the younger people in Kenya who do not widely utilise traditional banking services due to the cost structures and fees. Over 60% of the Kenyan population are below the age of 35 and the Mobile, Digital, e-hailing and Fintech services industry has wide usage in this age group and these younger people are likely to be the most affected by the new taxes.
The demonstrations, mostly led by younger Kenyans has gained massive support and while they have been largely peaceful are now have become more vocal today after the disappearance of around 7 of the protest leaders overnight by unknown assailants. with the protestors attempting to enter the Kenyan Parliament today, government has brought in masses of armed forces and police from other areas into Nairobi, indicating the far reaching effects of the additional taxes the government has proposed on its younger citizens.
Yesterday President Ruto, had reportedly agreed to have a conversation with the protesters about the new tax bill and there was hope that this will lead to the bill being scrapped, but with developments today this now seems unlikely.
