Kenya police use tear gas, water cannon as hundreds protest over tax hikes

Controversial but watered-down finance bill that many fear will up cost of living is due to be debated in parliament.

Police in Kenya have fired tear gas and used water cannon to disperse protesters gathering near parliament in the capital to demonstrate against planned tax hikes that many fear will worsen the cost-of-living crisis.

Tense scenes played out in Nairobi on Thursday as hundreds took to the streets in opposition to a finance bill, which proposes introducing new taxes and levies that would increase the price of basic goods.

The tax increases were projected to raise 346.7 billion shillings ($2.7bn), equivalent to 1.9 percent of gross domestic product (GDP), and reduce the budget deficit from 5.7 percent to 3.3 percent of GDP.

The cash-strapped government of President William Ruto agreed to make concessions on Tuesday, watering down the bill after hundreds of mostly young protesters clashed with police.

But the government will still go ahead with some tax increases and has defended the proposed hikes as necessary for filling its coffers and cutting reliance on external borrowing.