Kenya’s National Assembly Approves Road Levy Hike Amid Economic Reforms

Kenya’s National Assembly has raised the road maintenance levy by Ksh10, bringing it to Ksh28 per liter for petrol and diesel, sparking widespread concerns over increased living costs. At the same time, President William Ruto’s administration is seeking to extend the debt ceiling grace period to 2032, providing room for further borrowing. The Treasury has also proposed the Tax Laws (Amendment) Bill 2024, which includes a 6% tax on non-resident digital services and tax deductions for healthcare and housing expenses, aiming to alleviate financial burdens on Kenyans.

Adding to the economic challenges, the Kenya Revenue Authority (KRA) system failures have disrupted Ksh29 billion worth of tea exports, causing delays and severe congestion at the Mombasa port. These issues, coupled with rising fuel prices, are likely to intensify concerns about Kenya’s economic stability and the government’s ability to implement reforms effectively.