Kenyatta proposes 50 cent cut in fuel tax

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Kenya’s President Uhuru Kenyatta seems to have bowed to pressure and has now proposed a 50 cent cut on the 16% value added tax on fuel and fuel products following public anger.

In an address to the nation on Friday, Kenyatta was however clear that Kenyans must be prepared to pay higher taxes to finance the country’s development agenda.

Early on Thursday Kenyatta rejected a finance bill that sought to postpone a tax on fuel for two more years.

The decision by the Kenyan finance ministry to increase tax of fuel and fuel products has been met with public anger.

Kenyatta says the funds are necessary to support his development agenda.

A week since the new tax took effect his administration seems to have bowed to pressure on Friday.

Kenya’s current debt stands at more than 50% of the GDP.

While the funds have gone to big infrastructural projects, Kenyans say much more has been lost to corruption.

Kenyatta says:”I want to assure Kenyans that their taxes will be used well and that is why I have increased the resources available to institutions entrusted to fight corruption.”

Kenyatta also announced cost cutting and austerity measures in the public service.