Government to Reintroduce Eco-levy to Address Budget Deficit

The government is planning to reintroduce the Eco-levy with 47 measures aimed at raising KES 150 billion to cover government expenses following the cancelation of financial bill 2024.

This levy is set to be implemented by 30th September alongside other tax amendments.

Consequently, the bill has 47 clauses including some that were initially scrapped as part of a broader strategy to address budget gaps and shortfalls without borrowing more loans.

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Eco-levy aims to reduce environmental pollution as they target on pollutants, therefore, the government is imposing taxes on products that contribute to environmental pollution, particularly plastics, excluding sensitive products such as sanitary pads.

“We have lined up 47 amendments among them the eco-levy. We will however remove the ban on sanitary pads and other sensitive items,” treasury CS John Mbadi said on citizen TV.

A 10% levy proposed on locally produced plastics, an amendment which had previously faced criticism and opposition from large corporates like Coca cola, arguing that it will bring unsustainability in their operation.

The revenue will cater for education including paying teachers and university funding, health care services and development according to the treasury CS.

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The government is making a risky move by bringing contents of the scrapped finance bill 2024 which spurred unrest in the country.

Kenyans on social media has criticized the government’s move, promising to hit the streets again.