Editor's Review

“Over taxation, especially of goods and services used by mama Mboga and Wanjiku, make governments very unpopular."

City lawyer Ahmednasir Abdullahi has warned President William Ruto against the proposed new taxes in the Finance Bill 2024 that will make Kenyans dig deep into their pockets.

In a statement via X on Sunday May 12, Ahmednasir noted that over-taxation makes governments unpopular with citizens when taxes are stolen by corrupt individuals and there are no corresponding services to the people.

“Over taxation, especially of goods and services used by mama Mboga and Wanjiku, make governments very unpopular and delegitimised when it doesn't provide corresponding services or when the taxes are stollen by corrupt civil servants. President William Ruto's government is going that route full speed,” said Ahmednasir.

The senior counsel mentioned that the government raises taxes yearly but in return doesn’t offer good roads and health services.

Ahmednasir urged President Ruto to engage Kenyans on the proposed taxes and deal with corrupt individuals stealing public resources.

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“H.E. Williams Ruto needs to engage Kenyans on these taxes and why it is stolen under his watch. Mr. President, we will pay taxes but give us value for our money and stop your Waziris, judges, and governors stealing Wanjiku's taxes,” he added.

File image of law Ahmednasir Abdullahi. 

Ahmednasir's statement comes after the government proposed new taxes in the Finance Bill 2024.

The bill seeks to introduce a motor vehicle tax based on the value of the vehicle. The tax rate will be capped at 2.5 per cent of the value of the vehicle, with the minimum tax set at Sh5,000 and the maximum at Sh100,000.

The 2024 Finance Bill also introduces a withholding tax on goods supplied to public entities at 3 percent for residents and 5 percent for non-residents.

The National Treasury is seeking a 5 per cent tax from Kenyans who operate digital platforms or monetise digital content.

On VAT, the National Treasury has proposed a 16 percent tax on bread, which could add at least Sh10 to the price of a loaf.

The bill also proposes to remove VAT exemptions for several financial services, including credit and debit card issuance, telegraphic money transfer services and cheque processing.

In addition, the 2024 Finance Bill proposes to increase the excise duty on telephone and internet data services from 15 percent to 20 percent.