Nairobi — A group of Kenyan MPs on Thursday backed a plan by President Uhuru Kenyatta to halve VAT on petroleum products, easing pressure on his government from outraged Kenyans who are struggling as their living standards are squeezed. The government faced a fuel dealers’ strike, anger among commuters and a lawsuit after transport and fuel prices jumped when 16% VAT on all petroleum products came into force on September 1. The vote by parliament’s finance committee signals a likely win for the government of East Africa’s richest economy when the plan for an 8% tax goes to a full vote in the house later on Thursday. Kenyatta’s Jubilee Party enjoys a comfortable majority in the assembly. "They have agreed with the president," house majority leader Aden Duale told Reuters during the debate on Thursday. The tax is part of a government bid to finance key priorities prudently while narrowing a fiscal deficit that the treasury forecasts at 5.9% of economic output this year. Like other fro...
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