Kenya’s government has scrapped some proposed taxes in this year's controversial finance bill, including a 16 per cent levy on bread, after a public outcry.

The announcement by Members of Parliament came as police fired tear gas and used water cannon to try to disperse angry protesters in the capital, Nairobi.

The sudden change over the new finance bill was announced by chairman of the parliamentary finance committee, KURIA KIMANI at a press briefing attended by President WILLIAM RUTO as well as other lawmakers in the ruling coalition.

He said the decision to drop some of the proposals had been made to protect Kenyans from the increasing cost of living.

Other proposed taxes that have been dropped include ones on cooking oil, mobile money services and on motor vehicles.

KIMANI also announced a reversal on a proposed eco tax that targeted products seen as having a negative impact on the environment, such as packaging, plastics and tyres.