High taxes and debt threaten EA growth

Saturday June 15 2024

Demonstrators protest in Nairobi on June 6, 2024, against the Finance Bill, 2024, which imposes hefty levies on citizens. PHOTO | EVANS HABIL | NMG

By East African Community

East Africa’s finance ministers on Thursday tabled a raft of measures for expanded expenditure plans for the 2024/2025 fiscal year with a keen eye on debt repayment and reliance on domestic revenues to run government operations. These measures effectively set the stage for increased taxation, which will potentially choke economic growth in the region.

East Africa’s economic growth is projected to pick up from 3.5 percent in 2023 to 5.1 percent in 2024 and 5.7 percent in 2025, according to the African Development Bank, buoyed by infrastructure development and increased regional trade.

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