In Summary
  • The address comes on a day many Kenyans seem disillusioned after receiving the news that the 16 percent VAT is here to stay. At least for now.

  • Many took to social media to express their anger, frustration and dissatisfaction, saying the president should have heard their cry and relieved them of the economic burden.

  • The fuel tax has seen a sharp rise in prices of basic commodities, including those zero-rated in the 2018/19 Budget, like maize and wheat flour.

President Uhuru Kenyatta is today expected to address the nation on the state of economy after he rejected the Finance Bill 2018 on Thursday night.

Had he assented to the proposed law, implementation of the 16 percent value added tax imposed on petroleum products would have been postponed until 2020.

PRICES

The bill will now be returned to the National Assembly for further debate and amendment as suggested by the Head of State.

In his address from State House Nairobi, Mr Kenyatta will seek to assure Kenyans that all is not lost as he gives reasons why he rejected the bill.

State House Spokesperson Kanze Dena said the address follows consultations the president made with the leadership of the National Assembly.

She did not say what time the president will address the nation.

The speech comes on a day many Kenyans seem disillusioned after receiving the news that the 16 percent VAT is here to stay, at least for now.

Many took to social media to express their anger, frustration and dissatisfaction, saying the president should have heard their cry and relieved them of the economic burden.

The fuel tax has seen a sharp rise in prices of basic commodities, including those zero-rated in the 2018/19 Budget, like maize and wheat flour.

But not everyone is angry with Mr Kenyatta, especially members and leaders of his Jubilee Party.

KURIA

Some commended the president for his actions, with others asking Kenyans to be patient and wait for the reasons that informed the decision.

Gatundu South MP Moses Kuria, who had opposed the bill, was pleased with the president’s decision and urged Kenyans to move on.

“Now we will re-look both fuel VAT & employer-employee 1.5% Housing Fund contribution for the Big 4,” he said.

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