Kenya reintroduces tax reforms with new deputy president

NAIROBI - Kenya announced on Friday it was re-introducing some of the tax hikes that sparked deadly protests earlier this year, while a new deputy president was sworn in after weeks of drama.

President William Ruto scrapped an unpopular finance bill in June after the protests.

Rights groups accused police of a brutal and illegal crackdown that led to more than 60 people being killed, with dozens more being arbitrarily arrested.

But Kenya's government desperately needs to boost revenue as it struggles under around $80 billion in debt.

READ: IMF approves $606m lending to Kenya

Tax changes announced in local newspapers on Friday showed it was re-introducing proposals from the finance bill, including VAT hikes and new taxes on the digital sector.

The latter means freelancers working in food delivery and for ride-hailing apps -- which have become vital sources of income in recent years -- will have to pay income tax for the first time.

Such tax hikes are likely to cause upset in a country where a third of the population lives below the poverty line.

- New deputy -

Meanwhile, the government announced a public holiday at the last minute to celebrate the swearing-in of new deputy president Abraham Kithure Kindiki, who has served as Ruto's interior minister for the past two years.

It followed weeks of drama around the impeachment of Ruto's previous deputy, Rigathi Gachagua, who was accused of ethnically divisive politics.

Gachagua has denied the charges but was impeached by the Senate on October 17, though it cleared him of a slew of corruption charges.

A powerful businessman, Gachagua helped Ruto win a closely fought election in 2022 by rallying support from the crucial Mount Kenya region, particularly members of the Kikuyu tribe.

READ: Kenya deputy president ousted in historic impeachment

Kindiki, a 52-year-old academic and lawyer, also hails from the vote-rich region.

He defended his boss at the International Criminal Court when Ruto was accused of crimes against humanity over 2007-08 post-election violence.

In his acceptance speech, Kindiki described himself as the "most unlikely person" to take over the deputy presidency, having come from humble village origins.

"Kenya has made it possible for anyone to become anything in this country. I don't take it for granted," he said.

Kindiki was criticised for backing the police when they were accused of excessive force during this year's protests.

"Welcome to the team that is going to transform Kenya into a great nation," Ruto told him at the ceremony.

"Failure is not an option," Ruto said, listing plans to focus on improving higher education, healthcare, agriculture, housing and more.