Kenya Finance Bill 2024 Sparks Heated Debate Over New Taxes

The Kenya Finance Bill 2024 has caused a lot of debate because it plans to change the country's taxes. The government says these changes are needed to collect more money and solve economic problems. However, critics think the changes will create more problems than they solve.

One of the most debated proposals is a new 2.5% tax on the value of cars, with a minimum payment of KSh 5,000 per year. Car owners would have to pay this tax annually. Critics say this tax will make transportation more expensive, especially for low-income families. As one Twitter user put it, "This bill is bad. I've read only 20 pages, and all I can tell you is that if you are reading this, please reject it!"

Another controversial part of the bill is changing the VAT (Value Added Tax) on ordinary bread. Currently, bread has no VAT, but the bill proposes adding a 16% tax. This has upset many people because it will make bread, a basic food item, more expensive and worsen food insecurity for many Kenyans.

The Finance Bill 2024 also proposes an increase in excise duty on financial services from 15% to 20%, which will raise the cost of bank transfers and mobile money transactions. This move has been criticized for its potential to hinder financial inclusion and further burden the middle class.

The Law Society of Kenya (LSK) has called on Parliament to heed the public's concerns about the Finance Bill 2024, warning that the proposed tax increments could lead to a challenging socio-economic environment. The LSK emphasized the importance of upholding the rule of law and fostering greater public participation in the decision-making process.