President William Ruto, who won elections in August on a platform of helping the poor, is under pressure to raise revenues in East Africa's economic powerhouse in the face of rising government debt repayments.
Police fired tear gas to disperse about 500 protesters who marched to parliament to present a petition against the bill, a Reuters witness said. Ruto has defended the bill, saying its provisions are needed to ensure financial stability and create jobs for young people by building new houses financed through a housing levy. The legislation, which would also hike taxes on digital content, is expected to be voted on next week.
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