Nairobi — Civil society organizations under the banner of Okoa Uchumi have expressed concerns over the recently released budget estimates for the financial year 2024-2025.
The umbrella body bringing on board 18 civil groups led by Transparency International (TI) and the Kenya Human Rights Commission (KHRC) averred that the proposed finance bill poses punitive taxes on Kenyans, threatening their access to vital services essential for the full realization of their fundamental rights and freedoms.
"As staunch advocates for human rights and the interests of marginalized members of society, we express profound concern over the escalating cost of living, compounded by punitive, unattainable, and unpredictable tax policies. It is deeply troubling to witness significant budget reductions averaging 11% in critical sectors such as education, research, social protection, disaster response, and agriculture," said Transparency International Executive Director Sheila Masinde.
On his part, KHRC Deputy Executive Director Cornelius Oduor asserted that the government has failed to tackle corruption, which is a thorn in the flesh of Kenyans.
"Despite the government's elaborate plans to increase the tax burden, they have not reciprocated the same energy towards the fight against revenue leakages through corruption and wastage," he said.
The lobby group urges that the proposal to remove gluten bread and unleavened bread from VAT while also removing the zero rating on the supply of ordinary bread, milk, cream, and all other inputs and raw materials will be an abuse of the government's duty to ensure the accessibility of food.
The 2024-2025 finance bill seeks to introduce a 2.5 percent tax on the value of motor vehicles, a factor that lobby groups say is likely to increase the tax burden on citizens.
Parliament is expected to debate the bill, paving the way for its implementation should it sail through the floor of the house.