Finance Minister John Mbadi announced on Monday that the government will solicit suggestions from the public on new legislation aimed at increasing revenue and addressing economic challenges. This move comes after protests forced the government to withdraw its financing law, leaving a significant budget deficit and delayed funding from the International Monetary Fund.
Mbadi, who was appointed last month, stated that the government is struggling to manage its finances and has no choice but to continue servicing its debt, which exceeds the recommended level. He emphasized that debt restructuring is not an option and that the government will instead focus on managing its debts and making payments.
The public has until September 20 to submit proposals on legislative reforms to improve the economic situation. Mbadi hinted at potential tax cuts in the medium term, including reducing value-added tax and corporate income tax.
This development marks a shift in the government’s approach, following the withdrawal of tax hikes worth over 346 billion shillings ($2.7 billion) in June after deadly protests. The government is now seeking to engage with the public to find solutions to its economic challenges.
