90% of Kenyans oppose Finance Bill 2023

According to a new survey, more than 90% of Kenyans oppose the Finance Bill, 2023, which contains the government’s taxation plan for the fiscal year beginning in July.

According to a survey conducted by civil society organizations Twaweza and the Centre for Fiscal Affairs (CFA), at least 75.1 percent of Kenyans strongly oppose the Bill, while 17.8 oppose it.

Only 1.9 percent of the 25,966 Kenyans polled said they strongly support the Bill, whose contentious proposals have drawn widespread criticism.

The survey was conducted between May 19 and June 6, with Nairobians accounting for 20% of the respondents.

According to the findings, Kenyans are firmly opposed to the majority of the contentious ideas contained in the Bill and believe that instead of robbing people of their money, the government should fight corruption, which is wasting billions of dollars of taxpayer money.

“The Finance Bill, 2023 wants to raise revenue through tax, but Kenyans are being crushed by the high cost of living, stagnant and limited income,” it stated.

A plan to increase the Value Added Tax (VAT) on fuel products from 8 percent to 16 percent was completely opposed by 94 percent of respondents, while 2.2 percent indicated they only slightly supported the proposal.

The majority of respondents who were Kenyan rejected this proposal. Only 1.7% of the people surveyed said they were in total agreement with the proposal.

The National Assembly’s Finance committee revised the proposed 3 percent house levy downward to 1.5 percent, and at least 92.4 percent of respondents completely oppose it, with only 3 percent indicating complete support.

A proposal to increase the excise tax on mobile money transfer services from 12 to 15 percent is also completely opposed by 90 percent of respondents, but 2.5% said they completely support it.

According to the survey, 47.1 percent of respondents said they completely oppose a proposal to lower the Turnover Tax band from businesses with annual revenue of Sh1 million to Sh500,000. Eighty-one percent of respondents oppose the planned increase in turnover tax to 3 percent.

The proposal to include small businesses, with daily revenues averaging Sh1,370, into the Turnover Tax band, where they will pay 3% of revenues, was supported by more than 38% of respondents, which is interesting irrespective of whether they make profits, should the Bill pass.

66 percent of respondents said they oppose a proposal to set a standard National Health Insurance Fund (NHIF) contribution at 2.7 percent of salary, even though it is not included in the Finance Bill, because of corruption at the fund, which has led to hospitals continuing to provide subpar care despite citizens’ contributions to the Fund.