Kenya Eco-tax Reform: Towards a Major Change in the Eco-levy

**Fatshimetrie: Kenyan Parliament to discuss eco-tax reform**

The recent revision of the controversial environmental tax, dubbed the “eco-levy,” will soon be submitted to the Kenyan parliament. The move follows a statement by Treasury Secretary John Mbadi that “about 49 measures” were currently being considered in a tax bill.

The aim of the eco-levy is to curb pollution and promote better waste management at the corporate and household levels. Unlike the initial proposal, this revised version will exclude sanitary napkins, the new secretary insisted.

Large companies remain in the authorities’ sights. The minister refuted an appeal by American beverage company Coca-Cola that opposed the 10% tax on all locally manufactured plastics. “They will have to explain to us the reasons for their opposition,” Mbadi said. “This country is not a dumping ground. If you harm the environment, you have to help repair the damage you have done.”

In addition, the government is aiming to boost tax revenue by extending the tax amnesty period by six months.

The cancellation of Kenya’s 2024 Finance Bill in June followed widespread protests against tax hikes. This forced President William Ruto to reassess the budget and explore new sources of revenue.

At the handover ceremony last week, Treasury Secretary John Mbadi expressed his desire to reintroduce some provisions contained in the cancelled Finance Bill.

On Sunday, some opposition leaders urged the judiciary to stand firm against what they see as an attempt to reintroduce the rejected 2024 Finance Bill.

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