Members of parliament passed the controversial Finance Bill after those allied to President Ruto’s Kenya Kwanza Alliance, the majority side, voted 195 against 106 with zero abstentions.
This is despite the opposition Azimio alliance rejecting the bill, and huge protests in the streets of Nairobi and Mombasa over the past few days. One person was confirmed killed, and several were allegedly abducted by police wearing masks.
The Bill must now go to Ruto for assent.
The Finance Bill was amended to remove the proposed 16% VAT on bread, transportation of sugar, financial services, foreign exchange transactions, as well as the 2.5 % Motor Vehicle Tax. There will also be no increase in mobile money transfer fees, and Excise Duty on vegetable oil was also removed.
Income tax does not need to be paid for levies on the Housing Fund and the proposed one on Social Health Insurance, while the proposed Eco Levy will only be used for imported finished products that contribute to e-waste and damage the environment when they are no longer in use.
Locally manufactured products, including sanitary towels, diapers, phones, computers, tyres, and motorcycles, will not include the levy.