Lobby Groups Join Kenyans in Opposing World Bank’s Call for Higher Taxes to Clear Pending Bills

Lobby groups and Kenyans have condemned the World Bank’s proposal urging the Kenyan government to raise consumption taxes such as excise duty and value-added tax (VAT) to help clear mounting pending bills.

The global lender’s advisory links the recommendation to Kenya’s growing unsettled bills, which have surged from Ksh421.6 billion in March to Ksh526 billion by June 2025.

Public Outrage Over World Bank Tax Proposal

The Motorists Association of Kenya (MAK) led the criticism, accusing the World Bank of prioritising debt repayment over the welfare of ordinary citizens already burdened by the rising cost of living.

“The World Bank is at it again, pushing the government to impose more VAT and excise taxes when Kenyans are already battling a high cost of living,” the group said in a Thursday statement.
“Many of these directives are tied to loans for projects that are poorly implemented or completely phantom, yet the ordinary Kenyan bears the cost.”

MAK recalled the 2018 fuel VAT protests, which it attributed to similar World Bank pressure. The lobby warned that repeating such policies could again trigger inflation, job losses, and widespread business closures.

“Every time the World Bank talks about fiscal discipline, it means squeezing citizens while protecting multinational interests. Government jobs and local spending are not the problem. Destroying them under the pretext of austerity only deepens poverty,” the association added.

Broader Criticism From Legal and Public Voices

Prominent lawyer Peter Wanyama joined Kenyans online in rejecting the tax proposal, arguing that the government should instead focus on tackling corruption and cutting wasteful expenditure.

“Why should VAT be increased? The best solution is to cut graft and wasteful projects and downsize government. Higher taxes will only burden citizens while fuelling wasteful spending,” Wanyama said.

He further urged the World Bank to support structural reforms that enhance efficiency and transparency rather than tax hikes that disproportionately affect low-income households.

Treasury Faces Fiscal Balancing Act

With VAT already at 16 per cent on fuel, cooking gas, and electricity, the Treasury now faces growing pressure to balance debt repayment obligations with protecting Kenyans from deeper economic strain.

Meanwhile, the Washington-based lender has yet to clarify whether it is calling for higher VAT and excise rates or simply a broader tax base that covers additional goods and services.