President William Ruto says his tax policies would help Kenya reduce dependency on external funding. / Photo: AFP

Kenya's President William Ruto has said he will "engage" and "have a conversation" with young people, who have vehemently opposed an introduction of new taxes that would further push up the cost of living.

The young people held protests in Kenya on Tuesday and Thursday, calling for the rejection of the Finance Bill 2024, which has proposed eco levy on imported items, including electronic gadgets and hygiene products such as sanitary towels and diapers.

The costs of motorcycles, tyres and batteries will also go up under the new eco levy proposal.

Eco levy targets items which contribute to environmental degradation.

Bread: A hot button

The bill has also proposed a 16% value-added tax (VAT) on the earnings of films produced locally.

Ruto's administration had earlier proposed a 16% value-added tax (VAT) on bread, but rescinded that decision after widespread protests.

The government also abandoned plans to charge a 2.5% annual tax on the calculated value of each vehicle in the country.

Despite making a couple of changes to the bill, Kenyans have rejected attempts to introduce more taxes, saying the citizens were already choking under heavy taxation.

More protests planned

The youth have planned to engage in nationwide protests on Tuesday, when parliament is expected to hold final deliberations on the Finance Bill 2024, which sailed through in the last sitting on Thursday.

Speaking at a church function in the central Kenya town of Nyahururu on Sunday, Ruto said it was the young people's "democratic duty" to voice their grievances against the government of the day.

"We are going to have a conversation with you… so that we can identify your issues," Ruto told the youth, though he did not elaborate when and how the negotiations will be held.

He added that his government was "concerned" about the issues raised by young people, and reiterated his commitment to "engage" them in a "democratic" manner.

Ksh3.9-trillion budget

Ruto's administration, which has drawn a 3.9-trillion Kenyan shilling ($30.2 billion) budget for the financial year 2024/25, targets to collect 300 billion shillings ($2.3 billion) more in taxes under the proposed charges.

The government aims to collect a total revenue of 3.3 trillion shillings ($25.5 billion) in the new financial year and bridge the deficit through borrowing.

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TRT Afrika