Despite amendments to the bill passed in October but sent back to parliament with some presidential changes, Washington remained concerned it could "discourage public debate," a US official said yesterday.
"It will undermine the progress Kenya has made to promote freedom and give the government undue power over the media," Will Stevens, spokesman for the State Department's Bureau of African Affairs, said in a statement to AFP.
The most contentious elements of the bill, which still needs to be signed into law by President Uhuru Kenyatta, remain despite his changes, including the power to impose up to 20 million Kenyan shillings (USD 231,000) in fines on news organisations.
The bill has sparked furious reactions from Kenya's vibrant independent media, with front pages declaring that democracy and free speech were under attack.
It was passed a day after the Kenyan parliament blocked another controversial piece of legislation that would have set caps on overseas funding to non-governmental organisations.
Stevens said the United States had been encouraged "that the national assembly rejected amendments that would have limited the ability of civil society to provide assistance to give voice to Kenya's citizens.
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