PSI Executive Board EB-165 welcomed the withdrawal of the Finance Bill in Kenya but reiterated recommendations for tax reform and support for health workers.

PSI emphasizes the need for a fair tax burden on multinationals and the wealthy to finance public services. The resolution also condemns the attack on Dr. Davji Attellah and calls for international support for Kenyan health professionals facing violence and resource shortages while caring for protestors.

PSI Executive Board EB-165, meeting in Geneva, 26 and 27 June 2024,

the government's decision to withdraw the Finance Bill, but reiterates our recommendations made in July 2023, through PSI affiliates in Kenya.

NOTES that young people, union members, and the broader public are calling for a complete rejection of the Finance Bill.

SUPPORTS the members of our affiliates in the Health Sector including KMPDU, and other medical professionals who are providing medical care to protestors, many of whom have been injured or killed during the demonstration.

AGREES with the general principle agreed by unions to expand fiscal space for governments and acknowledges that tax revenues are essential for financing our public services and sustainable public investment.

DEMANDS a fair tax burden, especially on the wealthiest and profitable multinationals, which is an indispensable element of domestic resource mobilization.

NOTES with concern that according to recent estimates, Kenya loses USD 496 million every year due to corporate tax avoidance by multinational corporations.

DEMANDS the government to review, and in some cases end, tax incentives to multinational companies.

ENCOURAGES a transparent mapping of all tax incentives together with a qualitative analysis of their effectiveness in attracting real investment that benefits sustainable development and creates quality jobs.

SUGGESTS Kenya should consider alternative minimum tax measures more suited to protect the national tax base, instead of relying on the OEC Pillar Two model which is skewed towards countries that are home to multinationals.

FURTHER SUGGESTS that the government should bring back a digital services tax to ensure that multinational companies' digital platforms are taxed.

NOTES the series of strikes by health professionals who face severe understaffing and lack of resources they need to do their job.

CONDEMNS the violent attack against Dr. Davji Attellah, the General Secretary of PSI affiliate the Kenya Medical Practitioners, Pharmacists, and Dentists Union (KMPDU), who in February was severely injured in the head by a teargas canister during a peaceful protest in Nairobi.

RESOLVES to mobilize international support for any Kenyan affiliate or leader, including Dr. Davji Attellah, who is attacked, harassed, or in any way impeded from conducting trade union business or peaceful protests as part of their fight to oppose the finance bill, block privatization, or promote organizing across the health sector.

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