Business Leaders Protest New Tax Policy on 10,000 in Nairobi

The Kenyan government has dropped several controversial tax proposals following widespread public protests in Nairobi and other cities against the 2024/2025 Finance Bill. The Presidency announced on Tuesday that the planned 16 percent Value Added Tax (VAT) on bread, financial services, foreign exchange transactions, and the 2.5 percent annual Motor Vehicle Tax had been scrapped. The move came just hours after police clashed with demonstrators outside Parliament, using tear gas to disperse crowds protesting under the banner Occupy Parliament. Civil society groups reported that at least 210 people, including journalists and human rights observers, were arrested during the protests.
The demonstrations reflected growing frustration among Kenyans over the government’s fiscal policies, which many believe disproportionately burden low- and middle-income earners. The Finance Bill, part of President William Ruto’s strategy to raise domestic revenue and reduce reliance on borrowing, has faced fierce criticism from citizens and opposition leaders alike. Last year, similar tax measures—including the introduction of a housing levy and higher health insurance contributions—sparked protests nationwide. While Ruto has defended his administration’s approach as necessary to make Kenya financially self-sustaining, critics argue that the reforms risk stifling investment and deepening economic hardship. This bill is worse than the one of 2023, opposition leader Raila Odinga said, calling it an investment killer and a heavy burden on millions of poor Kenyans.
Despite the partial rollback, protesters and rights groups say the amendments do not go far enough. Amnesty International Kenya condemned the arrest of peaceful demonstrators, including its own staff, and demanded their immediate release. The Law Society of Kenya also accused police of targeting lawyers attempting to represent detainees. Lawmakers are expected to resume debate on the Finance Bill this week, reviewing each clause before a final vote. As the standoff continues, civil society groups have vowed to sustain pressure on Parliament to reject the tax proposals in their entirety, signaling ongoing tension between the government’s fiscal agenda and public demands for economic relief.