This archive report was first published on 18 June 2020.
Kenya: Pensioners and Bar Owners Protest New Tax Proposals ¶
On June 18, 2020, senior citizens and bar owners in Kenya took to the streets to protest new tax proposals that they claim will reduce their income and lead to premature death.
The Treasury Cabinet Secretary, Ukur Yatani, has proposed increasing tax on Senator keg beer, which is popular among low-income earners, and taxing all income from the National Social Security Fund (NSSF).
The Bar Hotels Liquor Association of Kenya, which represents 54,000 members across the country, argues that the proposals will result in a loss of Sh200 million daily. The association is also seeking to have its members allowed to close business at 9pm, instead of 4pm.
"We would like to propose a revision of the decision to publish the amendment of the Excise duty remission on sorghum and keg-making grains to 60 per cent and maintain it at 80 per cent," said Simon Njoroge, the association's chairman.
Mr. Njoroge added that the introduction of the Excise Duty Act (2015) had led to the loss of nearly 150,000 jobs and that a huge marginal change would gravely harm the industry, which would negatively impact the economy and lead to the re-emergence of illicit brew consumption.
A pensioner's lobby group has also opposed the removal of the pension tax exemption for retirees above 65, saying it will make them receive significantly lower payments. The group notes that pension benefits are the only source of livelihood for most retired Kenyans.
"Retirees aged 65 and above are very vulnerable members of society," the group says. "This group is highly susceptible to a variety of chronic diseases such as cancer, diabetes, high blood pressure, incontinence, dementia and multiple chronic conditions."
The group adds that the diseases are expensive to treat, and insurance companies are reluctant to provide health policies to those above 65 years of age. "The Cabinet Secretary should, therefore, consider other areas of raising revenue and/or reduce government expenditure," the group says.
