Kenya’s government has scrapped some of the proposed taxes in this year’s controversial finance bill, including a 16% tax on bread, after public outcry.
The announcement by lawmakers came as police fired tear gas and used water cannon in the capital Nairobi to try to disperse angry protesters.
Dozens of people were arrested, and lawyers earlier joined chanting crowds at the city’s main police station demanding the release of detainees.
Since taking office in 2022, President William Ruto has introduced several unpopular new taxes aimed at eradicating the country’s nearly $80bn (£63bn) national debt.
But critics of the latest proposals worry they will stifle economic growth and lead to job losses.
Some protesters marching in the capital called on the president to resign, chanting “Ruto must go! Ruto must go!”
Kuria Kimani, chairman of the parliamentary finance committee, announced the U-turn on the new finance bill at a press conference attended by President Ruto and other members of the ruling coalition.
His finance team has been gathering public input on the bill and he said the decision to abandon parts of the proposal was made to protect Kenyans from rising costs of living.
Other taxes proposed to be cut include those on cooking oil, mobile money services and motor vehicles, which critics say would also hit the insurance industry.
Mr Kimani also announced the withdrawal of a proposed eco-tax, which targets products deemed to have a negative impact on the environment, such as packaging, plastics and tyres.
It has been met with fierce opposition, with many arguing it would raise the cost of key goods such as nappies, sanitary napkins, computers and mobile phones.
Kimani said the tax now only applies to imported goods.
Ruto did not speak or react at the press conference, but the move was seen as bowing to public pressure and would be a blow to his government.
He recently urged Kenyans to accept more taxes, arguing that they were actually undertaxed, but admitted that would be difficult.
Payroll, gas and sales taxes have all increased over the past two years.
A housing tax levied on 1.5% of workers’ monthly salary has also been introduced to build affordable housing.
New, higher health insurance taxes are also set to take effect.
Lawmakers are due to discuss the finance bill on Wednesday, which is why protests are taking place in the capital.
Police arrested several people accused of organizing the demonstrations.
