28/06/2024
Calm in Kenya as controversial new Bill is revoked
Peace has returned to Kenya. This comes after Kenyan President, William Ruto, pulled the controversial Finance Bill 2024/2025 on June 26 following widespread protests.
The Bill, published earlier this month, sought to raise US$ 2.7 billion in additional taxes to reduce the budget deficit and state borrowing. This Bill impacted a number of business sectors in the East African country, including the tourism sector.
It proposed the scrapping of certain VAT exemptions in the tourism sector including taxable goods for direct and exclusive use for the construction of tourism facilities, recreational parks of fifty acres or more, convention and conference facilities, and specially designed locally assembled motor vehicles for transportation of tourists.
“Having reflected on the continuing conversation regarding the content of the Finance Bill 2024, and listening keenly to the people of Kenya who have said loudly that they want nothing to do with this Finance Bill 2024, I concede, and therefore I will not sign the 2024 Finance Bill,” said Ruto during a televised address on Wednesday evening.
The Kenya Tourism Federation (KTF) – the national apex body of the tourism private sector in Kenya, with the core mandate to advocate for enabling policies to grow, protect and sustain the tourism sector – has issued a statement noting that the situation in the country has stabilized.
Chairman of the KTF, Fred Odek, said: “Kenya has witnessed demonstrations in various locations across the country to protest the 2024 Finance Bill. These demonstrations were communicated in advance and were intended to be peaceful.”
Unfortunately, the demonstrations turned violent on June 25 and several news reports highlighted that at least 23 people were killed.
“As the apex body in tourism, we are deeply concerned with the events that unfoldeded. Our heartfelt condolences go to all the bereaved families,” said Odek.
Assurances issued to the tourism sector
In its statement, the KTF acknowledged that the protests might have caused anxiety amongst tourism stakeholders.
The statement read: “We wish to advise that the demonstrations reflect the democratic rights of citizens in shaping their country's policies similar to what takes place in other parts of the world. Such demonstrations are, however, always targeted to remain peaceful.”
Furthermore, the statement continued, the demonstrations were largely situated within the urban centres and Kenya's tourism sites and attractions were not directly affected.
Odek further advised that the thousands of tourists currently in the country were all safe and sound enjoying their holidays as planned.
“Tourist circuits across the country have not reported any incidents, whilst movement through the airports, airstrips and hotels continues as normal and all have remained accessible,” emphasised Odek.
He added: “The situation in the country is returning to calm and in his address to the Nation, the President of the Republic of Kenya has assured all stakeholders that security will be restored. This has been echoed by statements from several other leaders all calling for peace as citizens exercise their rights to demonstrate.”
According to Odek, the KTF Safety Centre remains alert, actively monitoring the situation and will continue to dispatch real-time updates as the situation demands.
“We encourage all travelers to stay informed through reliable sources and official channels to ensure that your visit to Kenya is as enjoyable and memorable as ever,” noted Odek.
Source: Tourism Update
