Mombasa Residents Reject Proposed Tax Hikes: A Call for Economic Relief

BY LUCY MUSENYA

In a recent meeting at the Tononoka Social Hall, Mombasa residents voiced strong opposition to the government's contentious Finance Bill. The National Assembly's Departmental Committee on Finance faced a packed hall of frustrated citizens, including small business owners and youth representatives, who deemed the proposed tax hikes as detrimental to the local economy.

One of the most controversial measures discussed was a proposed excise duty on mobile device activation. Activists, particularly from grassroots groups like Bunge la Mwananchi, argued that this additional cost would hinder digital access, which is crucial for youth employment and education. They highlighted the already burdensome taxes on telecommunications, including a 16% VAT, a 10% excise duty, and a 25% import duty.

Local leaders also expressed concerns about the broader implications of the bill, particularly regarding its potential impact on the tourism sector. They pointed out that new taxes on transport and tourist vehicles would harm Mombasa’s struggling hospitality industry. Instead of raising taxes, they urged the government to reduce wasteful spending and improve fiscal transparency.

Committee Chairman Kimani Kuria, despite facing hours of criticism, assured residents that their feedback would be documented and reviewed. He also dispelled rumors about potential new taxes on basic food items, reinforcing the committee’s intention to support local manufacturers while fostering a stable business environment.

However, skepticism remains among economic experts, who warn that imposing such taxes without public adjustments could lead to further alienation of citizens. They advocate for a tax system that encourages productivity rather than punitive measures.

AUTHOR’S PICK

As the public engagement phase concludes, lawmakers are under pressure to amend the bill significantly before it is presented for a second reading. The critical question remains whether the final draft will adequately address the concerns raised by Mombasa’s residents.ng. Whether the final draft will reflect the intense public outcry at Tononoka remains the critical question for millions of taxpayers.