Raila Odinga, leader of the Azimio la Umoja One Kenya coalition party, has strongly criticized the government’s proposals outlined in the Finance Bill 2024.
On Friday, Mr. Odinga issued a scathing critique of the Kenya Kwanza regime, denouncing the Bill as regressive and callous towards the nation’s impoverished citizens. He emphasized that its repercussions would surpass those of the Finance Bill 2023.
“The Bill is a regressive taxation proposal that goes ruthlessly after the poor. Should it be ratified, low-income people will be hit with taxes on multiple fronts and will end up paying more than people with higher incomes. It is obvious that tax on basic necessities such as food, cooking oil and money transfer disproportionately hurt the poorest of the poor,” Odinga stated.
The opposition leader highlighted specific economic sectors that would bear the brunt of the proposed tax hikes, including Value Added Tax (VAT), warning that everyday Kenyans would face greater hardships compared to the previous fiscal year.
“The tax burden in Kenya has reached its peak since independence, yet public services continue to struggle. Adding to this, the Finance Bill 2024 suggests further increases in taxes, exacerbating the situation. Consequently, if the Finance Bill 2024 remains unchanged, both the people and the country will face even greater challenges by 2025. Many of the tax proposals within the bill are not only insensitive but also heartless.”
Odinga emphasized the burden of the newly imposed taxes on essential items like bread, edible oil, mobile banking transactions, and sugarcane factories, stating that they would exacerbate the economic woes of already struggling Kenyans.
Additionally, he addressed the adverse effects of the proposed eco levy on manufactured goods such as diapers, the introduction of a 2.5 per cent tax on motor vehicles, and the implementation of new taxes on insurance and reinsurance services.
Azimio’s leader urged the current administration to learn from Finance Bill 2023, where despite increased taxes, revenue targets were missed.
He attributed revenue declines to businesses closing due to high fuel costs. “Last year’s tax changes caused hardship without boosting revenue,” he noted.
Odinga urged the current administration to rethink its tax plans, cautioning that Finance Bill 2024 could harm the economy. He urged MPs to reject the bill to protect Kenyans.
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