Kenya finance bill protests

The Kenya finance bill protests widely known by the hashtag #RejectFinanceBill2024 are series of ongoing decentralized mass protests in Kenya against the tax increase proposed by the Government of Kenya in Parliament. The protests aim to put pressure on lawmakers and members of the Kenyan Parliament to cancel the Kenya Finance Bill 2024. These demonstrations were primarily fueled by anger over the rising cost of living and growing taxes. Lawmakers are expected to meet on 25 June to vote on proposed changes to the bill.

Kenya finance bill protests
Date	June 18, 2024 – present
Location	Kenya
Caused by	Bill proposal for hike in taxes
Goals	Cancellation of the finance bill
Methods	Anti-tax riots
Status	Ongoing
Casualties
Death(s)	1 protester
Injuries	200 protesters and 2 Policemen
Arrested	283 protesters including 4 journalists

Background

Initially budding as outcry on social media platforms like TikTok and X (formerly Twitter), the movement has grown to physical protests spearheaded by a predominantly young demographic. The protests spread nationwide on June 20, 2024 as police cracked down on demonstrators.

The protests echo the 2023 anti-government protests that followed the passing of tax reforms in the Finance Bill 2023. The 2023 protests witnessed the deaths of six people and dozens were left injured in a series of protests led by former prime minister, Raila Odinga.

While the protests against the proposed tax increase have been largely peaceful, there has been at least 1 death and about 200 people have been injured during the protests. One police officer lost both of his arms when a teargas canister detonated after he delayed to release the canister. One protester identified as Rex Kanyike Masai has been reportedly dead, after he bled to death from a gunshot wound.

Breakdown of the Bill

The 2024 Finance Bill is the first in a series of tax reforms based on a Medium-Term Revenue Strategy (MTRS) devised and published by the Kenyan government in 2023 through the Ministry of National Treasury and Economic Planning. The MTRS aims to increase the tax-to-GDP ratio in Kenya from 13.5% to at least 20% from 2024 to 2027. The figures from the MTRS are based on an International Monetary Fund estimate that Kenya has a potential of 25% tax-to-GDP ratio. Some of the suggestion of the MTRS are what informed the details of the Finance Bill 2024 including an annual circulation tax for all motor-vehicles and review of excise duty on petroleum products.

Some of the major changes proposed in the original 2024 Finance Bill include;

• Introduction of an Eco Levy on all imported products that harm the environment such as sanitary towels, diapers, motorcycles, tyres, plastic packaging, electronic devices, audio-visual recording equipment, radio equipment, and electronic equipment.
• Amendment to the data protection act that limited access to bank and mobile money statements of Kenyans by the Kenya Revenue Authority (KRA) without a court order. This would allow the Kenya Revenue Authority to have access to financial accounts of any citizen at whim.
• Introduction of a 2.5% Motor Vehicle Tax with a minimum of KES 5,000 and a maximum of KES 100,000. This was later amended to remove the ceiling.
• Extension of the time that the Kenya Revenue Authority can issue a decision from 60 to 90 days.
• Introduction of a minimum top-up tax of 15% on resident individuals or entities with a permanent presence in Kenya, affiliated with multinational groups earning over EUR 750 million annually in at least two of the previous four years preceding the first year of income.
• Withholding tax on payments made for goods supplied to public entities at 3% for residents and 5% for non residents.
• Increase of the Road Maintenance Levy from KES 18 to KES 25 per litre of fuel, which will raise the price of fuel even further.
• Introduction of a withholding tax on interest from Infrastructure Bonds (IFB) with a maturity of at least three years at the rate of 5% for residents and 15% for non-residents.
• Introduction of a withholding tax of 5% for residents and 15% for non-residents on any sale in shops hosted by any digital marketplace. The digital marketplace would be required to withhold the required amount and remit it to the government.
• Change of tax status of ordinary bread, transportation of sugarcane from farms to milling factories, locally assembled mobile phones, electric bikes, solar and lithium ion batteries, and electric buses from tax-exempt to standard which would introduce a 16% VAT on the items.
• Change of tax status for fertilizers, pesticides and fungicides from zero-rated to exempt which means that the tax on these items is still zero but manufacturers can no longer claim VAT on these items.
• Change of how excise duty is calculated for alcoholic beverages, cigarettes and tobacco-based products to increase collection on those items. This could see the tax on alcoholic beverages and cigarettes increase by up to 40% or higher for more potent alcoholic beverages.
• Introduction of a 25% excise duty on vegetable and seed oils and 5% duty or KES 27,000/tonne on coal (whichever is higher).
• Increase of excise duty to 20% for financial services transactions, telephone and internet services, lottery, betting, gaming, and advertisements on the internet and social media.

Controversial Sections of the Bill

Some of the arguments against the proposed finance bill include;

• Introduction of the Eco Levy on finished products would unfairly affect access to sanitary products in a country where over 65% of girls and women experience period poverty and cannot access menstrual hygiene products. The State Department of Gender and Affirmative action under the umbrella of the Ministry of Gender, Culture, Arts and Heritage estimates that girls from poor households lose up to 20% of school days in an academic year, equivalent to 6 weeks of learning due to lack of sanitary towels. This clause would only exacerbate the situation.
• Allowing the national tax arm, the Kenya Revenue Authority to access mobile and other financial accounts of citizens without a court order is unconstitutional and a clear violation of privacy rights and could potentially affect banking penetration in the country.
• A motor-vehicle tax and higher fuel prices resulting from the added road maintenance levy would adversely affect the transport sector and increase the cost of living for most Kenyans due to increased transportation and fuel costs.
• Changing the tax status of agricultural implements will increase the cost of food production in Kenya and consequently the cost of food prices.
• Taxes on electric bikes and buses, batteries and solar equipment contradict the Green Economy Agenda currently being pushed by the government through other proposed taxes like the Eco Levy.
• The introduction of a tax on necessities like bread, diapers, sanitary towels and cooking oil are a cash grab and punitive to the common Mwananchi.

Timeline

13th May to 18th June 2024 - Online mobilization

The #RejectFinanceBill2024 started with TikTok, before it spread to X where the spread of the anti-tax movements was facilitated via other platforms such as Instagram and WhatsApp.

It originally began as a call for action for netizens to request their members of parliament to vote against the bill by publicly sharing some of the phone numbers of various members of parliament. Once it became apparent that this was a futile attempt, posters calling for a demonstration on Tuesday the 18th of June 2024 started circulating on all social media, calling for everyone to come out in large numbers to protest against the bill. This led to the birth of the hashtag #OccupyParliament.

18th June 2024 - First Day of Protests

The first day of protests saw hundred of Kenyans take to the streets of the capital, Nairobi, to condemn the bill and urge their members of parliament to vote against the bill in the 2nd reading of the bill held on June 20, 2024. In what was largely a peaceful protest, Kenyans, whose original intention was to sit outside the parliament buildings were thwarted by the police who lobbied teargas canisters at them. Nairobi Police Commander Adamson Bungei stated that no group had been granted permission to protest. 210 people were arrested, and tear gas was used by police. Concerns about looting led to the temporary closure of multiple businesses. Despite these arrests, demonstrations and a planned sit-in outside parliament buildings continued. The Law Society of Kenya and human rights organizations in Nairobi and across the world condemned the violence of police against the protesters. Journalists were also assaulted in the protests, leading to condemnation from the Media Council of Kenya and several media outlets in Kenya. In spite of the violence, there were no deaths on either side on the first day of protests.

In response to the police violence, Kenyans took to social media platforms like X to publicly shame and publish personal information such as identification numbers, phone numbers, and even family members of some of the violent police officers captured in photo or video meting out violence to peaceful protestors and government apologists.

All arrested individuals were released the next day following lobbying from the Kenyan people, political leaders and human rights groups like Amnesty International.

19th June 2024 - Amendments to the bill, Second day of protests

In response to the public outcry voiced across the country, the budgetary committee proposed some amendments to the bill striking out some of the controversial sections of the bill. Some of the amended items include;

• Removal of the 16% VAT on ordinary bread, transportation of sugar cane, financial services and foreign exchange transactions.
• Removal of the 2.5% motor vehicle tax.
• Reversal of the proposed 20% excise duty on mobile money payments to the current 15%.
• Removal of excise duty on imported eggs, potatoes and onions.
• Removal of the clause allowing the Kenya Revenue Authority to have access to financial accounts of Kenyans without a court order.

However, scores of Kenyans were not satisfied with the modifications and vowed to take to the streets again to protest the bill until the entire bill was scrapped with the hashtag #RejectNotAmend.

The second day of protests was fairly quiet compared to the 18th of June. There were demonstrations in a few areas in the country such as the cities of Mombasa and Kisumu.

20th June 2024 - Third day of protests

A third day of protests preceded a house sitting for the Second Reading of the Finance Bill 2024. Thousands of Kenyans in 19 of Kenya's 47 counties, including the capital Nairobi, and the cities and towns of Mombasa, Kisumu, Eldoret, Meru, Lodwar, Kakamega, Kisii, Nakuru, Nyeri, Nanyuki, and Kilifi took to the streets yet again to try and get MPs to vote against the bill during the parliamentary sitting held during the day.

In a graduation ceremony at Garissa University attended by the president William Ruto, people could be seen chanting “Reject Finance Bill 2024” as the presidential motorcade drove through the town.

In a show of unity, dozens of medical and legal professionals volunteered to offer free medical and legal services to any protestors injured or arrested in the course of protests.

Similar to the first two days of protests, security forces were deployed to handle protestors and used water cannons and tear gas against the protestors. As many as 200 people were injured, with 8 considered to be in critical condition according to the Kenya Red Cross. One protestor was also reported dead after he was shot dead by a law enforcement officer.

The results of the parliamentary voting were 204 against 115, with the majority of MPs voting for the bill, which meant the bill proceeded to the Committee Stage.

See also

• 2024 Papua New Guinean unrest