In a recent interview on Spice FM, former Health Cabinet Secretary Mutahi Kagwe criticized the tax proposals on bread and diapers in the Finance Bill 2024, describing them as a strategic ploy by President William Ruto’s administration to mislead the public. Kagwe, who served under former President Uhuru Kenyatta, found it suspicious that such essential items were targeted for VAT during a period of widespread economic hardship in Kenya.
Kagwe suggested that the inclusion of these controversial taxes was intended to provoke public outrage and distract Kenyans from other significant tax proposals embedded in the bill. He theorized that the administration never truly intended to impose these taxes but used them as a diversion.
“You cannot honestly tell me, that at a time when Kenyans are crying as much as they are, you can say that you will tax bread and diapers. Seriously! You expect me to believe this is what you intended to do?” he questioned.
He further elaborated on the tactic, likening it to a psychological manipulation where people are placed in a difficult situation only to be relieved later, thus earning unmerited praise for the reprieve. Kagwe noted, “There is this tendency where you put people in a hole, remove them from the hole and they will praise you.”
However, Kagwe asserted that this strategy did not fool Kenyans, as evidenced by the protests, notably dubbed the Gen Z protests. These demonstrations showed that citizens were not swayed by the removal of the bread and diaper taxes and were still critical of other tax measures proposed in the bill. “It did not work. It backfired. Kenyans are not going to praise anybody because you say that you are not going to tax bread,” Kagwe remarked.
He expressed hope that more amendments would be made to the bill, addressing the remaining contentious taxes. Following substantial public outcry, the Kenya Kwanza administration withdrew the proposed taxes on bread and other essentials like diapers. This move was confirmed during a Kenya Kwanza Parliamentary Group meeting at State House, where it was decided to amend the bill before it went to debate in Parliament.
The Finance Bill 2024, with the proposed amendments, is set to be debated in Parliament today and Thursday, with a final vote scheduled for next week. Kagwe’s critique highlights the need for transparency and responsiveness in government policy, especially when it directly impacts the daily lives of citizens. His comments resonate with a broader call for careful consideration and revision of tax policies to ensure they do not disproportionately burden those already struggling.
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