Policy-fueled protests in Kenya and other key developments in Africa

Welcome back to the Vault.

This week, we share news of:

• Public dissent following Kenya’s Finance Bill and proposed tax changes
• Potential deferment of implementation of Ghana’s foreign visitors’ health insurance scheme
• Review of licensing regulations by Nigeria’s environment agency
• Launch of Dairy Policy in Nigeria
• Infrastructure growth in South Africa (Data Vault)
• Other News: Free Kenya e-visa, no mid-year tax introductions in Ghana and Bazoum’s loss of immunity

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Kenya Finance Bill triggers public dissent

In a previous edition, we discussed Kenya’s draft Finance Bill 2024 which proposes the introduction of new taxes including motor vehicle tax, and eco-levy on manufacturers and importers, among others in a bid to improve the country’s revenue.

Following public consultation, the Kenyan government announced that it is making some amendments to the Bill which must be passed before June 30. Below are some of the amendments.

• Removal of proposed 16% VAT on bread
• Removal of proposed excise duty on edible oil and proposed 2.5 percent Motor Vehicle Tax
• Removal of proposed VAT on transportation of sugar, financial services, and foreign exchange transactions
• Removal of Eco Levy on locally manufactured products like sanitary towels, diapers, phones, computers, tyres, and motorcycles
• Excise duty on alcoholic beverages will be based on alcohol content, and not volume; higher alcohol content will attract more duty
• Increase of pension contributions exemption threshold from Ksh. 20,000 to 30,000 per month

Despite the concessions, thousands of protesters took over parts of Nairobi’s central business district to express their opposition to other tax components of the Finance Bill, which introduce amongst others, a 2.75% levy on income for the national medical insurance plan, as well as increased taxes on vegetable oil and fuel. These tax proposals are expected to increase production costs and be passed on to already overburdened consumers.

Ghana health insurance for foreign visitors: to be or not to be?

The Ghanaian Government is considering whether to begin implementation of a national health insurance policy for foreigners visiting Ghana for short periods i.e. non-resident foreigners visiting the country for less than six months within any 12-month period. The policy, launched in February 2024, was due to take effect on 1st July 2024, but with exemption for visitors from ECOWAS countries, who are expected to be incorporated into the scheme in due course. Despite initial reports of commencement of the scheme on 1st July, feedback from enquiries indicates that the implementation date could be deferred. By Ghana’s National Health Insurance Act, 2012 (Act 852), provision of quality and accessible healthcare for both residents and non-residents in Ghana under a national health insurance scheme is mandatory.

Nigeria’s Environment Agency reviews licensing regulations

The Federal Government of Nigeria has convened experts/stakeholders to begin a review of the National Environmental (Permitting and Licensing Systems) Regulations, S.I. 29, 2009, to address areas of gaps in trending and emerging environmental issues.

Dr Innocent Barikor, the Director-General, National Environmental Standards and Regulations Enforcement Agency (NESREA) informed participants at the initial meeting for review of the Regulations that part of the objectives of the exercise is to achieve statutory environmental targets and outcomes such as “improvement in air quality, environmental conservation and avoidance of exposure to waste and hazardous substances by issuing environmental permits to the regulated community”.

Dairy Policy launched by Nigeria’s Vice President

The National Dairy Policy 2023 – 2028 has been unveiled by the Nigerian government. The policy is expected to guide both public and private sector stakeholders and their respective investments in the Nigerian dairy industry over the next four years. Amongst the targets of the policy, is the attainment of self-sufficiency in milk production and global competitiveness.

Speaking at the launch event, the Vice President (represented by a senior special assistant to the President on agribusiness and productivity enhancement), emphasized that the Nigerian government is keen to address key obstacles like lack of modern global best practices for cross-breeding and calving, midstream challenges, etc.

Data Vault: Infrastructure progress in South Africa

The South African government has shown its commitment to driving infrastructural growth by establishing an infrastructure Fund and an independent body (Infrastructure South Africa) to coordinate massive public infrastructure projects. The value of the projects currently under implementation is estimated to exceed R230 billion. Infrastructure projects cut across energy, transport, water, and sanitation sectors.

Other News

We’re also tracking some events in the news.

Ghana | Kenya offers free E-Visa to Ghanaians

On Wednesday, the Ghanaian Ministry of Foreign Affairs announced that Ghanaian travelers will now be issued Electronic Travel Authorization free of charge upon application, for travel to Kenya.

Ghana | No new tax request in mid-year budget review

Deputy Finance Minister, Dr. Alex Ampaabeng, has informed the public that Ghana’s government will not impose new taxes on Ghanaians in the upcoming mid-year budget. The same sentiments were echoed by a Technical Adviser at Ghana’s Finance Ministry, Dr Abudu Abdulganiyu, who gave assurances that the Minister of Finance does not intend to ask for a supplementary budget during the mid-year budget review scheduled for next month and that there are no plans to introduce new taxes.

This will come as a relief to the business community that is already grappling with an increased cost of doing business and general economic challenges in the country.

Niger | Niger takes immunity from deposed President Bazoum

Niger’s highest court has removed the immunity of deposed President Mohamed Bazoum, enabling the military junta to prosecute him for alleged high treason. Bazoum, who was overthrown by the junta nearly a year ago, has been under house arrest since the coup. The junta, which plans to charge him with high treason and undermining national security, began legal proceedings earlier this year to remove his immunity.

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