Tension Rises as Lobby, Kenyans Reject World Bank’s Push for Higher Taxes Amid Soaring Bills

The World Bank’s latest recommendation urging Kenya to raise consumption taxes — including VAT and excise duty — has sparked outrage among Kenyans and civil society groups, who warn that the move could push the already struggling population into deeper financial distress.

According to the global lender, the advice is tied to Kenya’s growing pending bills, which have ballooned from Ksh421.6 billion in March to Ksh526 billion by June this year. 

The Bank argues that stronger tax collection would help the government settle these obligations and maintain fiscal stability.

However, the Motorists Association of Kenya (MAK) strongly opposed the proposal, accusing the World Bank of promoting policies that value debt repayment over citizens’ welfare.

“The World Bank is at it again, pressuring the government to raise VAT and excise duty when ordinary Kenyans are already suffering under unbearable prices,” the association said in a statement. 

“It’s unacceptable that citizens keep paying for projects that either collapse halfway or never exist at all. These so-called reforms only benefit the elite," the association added.

The group also recalled the 2018 public uproar that followed the introduction of VAT on fuel — a policy they claim was influenced by World Bank conditions. 

According to MAK, that decision led to massive job losses, inflation, and reduced purchasing power.

“Whenever the World Bank speaks of ‘fiscal discipline,’ it usually means more pain for the public and protection for multinational interests,” the statement continued. “This approach is neither sustainable nor fair.”

Prominent lawyer Peter Wanyama also joined the debate, saying Kenya’s problem lies in wastage, not revenue.

“Instead of squeezing citizens with new taxes, the government should cut unnecessary spending and corruption. That’s where the real leakage is,” he said.

With Kenya already charging 16 percent VAT on essentials like fuel and electricity, the standoff now puts pressure on the Treasury — torn between pleasing global lenders and shielding Kenyans from further hardship.