Kenya's Finance Ministry Seeks Public Input on Revenue Legislation

Kenya's Finance Ministry, led by Minister John Mbadi, is calling for public suggestions on new legislation to boost revenue following the withdrawal of a controversial financing law. This comes after protests led to the suspension of tax hikes. Citizens have until Sept. 20 to submit their views.

Kenya's Finance Ministry is opening the floor for public suggestions on new revenue-boosting legislation, Finance Minister John Mbadi announced Monday. This development follows the withdrawal of a contentious financing law, which sparked protests and led President William Ruto to abandon tax hikes worth over 346 billion shillings ($2.7 billion).

Following the suspension of the tax increases, Kenya's already heavily indebted government now faces an increased budget deficit and delayed funding from the International Monetary Fund. 'We are barely managing,' Mbadi said at a budget preparation meeting. This statement comes after his appointment from the opposition in Ruto's bid to stabilize his administration.

Initially, Mbadi proposed reviving some of the tax hikes in the discarded bill but withdrew after public outcry and threats of additional protests. 'I will issue a circular tomorrow, inviting public participation to propose legislative reforms to improve our economic situation,' he said. Kenyans have until Sept. 20 to submit their proposals.

Mbadi emphasized that Kenya must continue servicing its debt, now exceeding levels recommended by the World Bank and IMF, due to past borrowing for infrastructure projects. 'We have no two ways about it. There is no debt restructuring in this country,' he declared. Mbadi mentioned that the government could consider tax cuts in the medium term, including reducing VAT on goods and services from 16% to 14% and cutting corporate income tax to 25%.

(With inputs from agencies.)