The move is made as the ministry plans to revive tax measures from the scrapped Finance Bill 2024 to raise 344 billion shillings ($2.7 billion), aiming to boost tax collection and reduce borrowing as required by an IMF program after deadly protests halted the original bill, putting President William Ruto's administration under pressure.
“We will do extensive public participation because we don’t want to be blamed again, to be accused of introducing things that are insensitive without considering the plight and concerns of Kenyans,” new treasury head John Mbadi said during his handover ceremony of the cabinet quoted by local media as saying.
Mbadi emphasized the importance of some provisions for the country's growth, considering measures like a tax amnesty and addressing VAT refund leakages. The government also plans to move some critical items from zero-rated to tax-exempt, which may increase consumer prices by preventing producers from claiming VAT on inputs.
“The country must grow. There are provisions that were in the bill that would help the country to grow,” he said.
The bill was rejected by parliament due to a lack of effective communication and engagement with the public, according to the new head of the office, and this issue will be addressed in the revised proposals.