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How Kenya’s financial law sparked nationwide unrest | News explained
Kenyan President Wiliam Ruto said on Wednesday (26 June) he will not sign a controversial finance bill, bowing to pressure from protesters who rocked the country last week.
Here’s everything you need to know.
A controversial bill
O Finance bill 2024, approved on Tuesday by the Kenyan parliament by a majority of 195-106, aimed to raise an additional $2.7 billion in taxes as part of the government’s effort to ease Kenya’s heavy debt burden.
Currently, Kenya’s public debt amounts to 68% of its Gross Domestic Product (GDP), exceeding the recommended limit of 55% by the World Bank and the International Monetary Fund (IMF). Interest payments alone consume 37% of Kenya’s annual revenue. The IMF has urged the Kenyan government to reduce its deficit and increase its tax base before being eligible for additional financial support.
Among other things, the finance law introduced a 16% Value Added Tax (VAT) on bread, increased the taxation rate for mobile transfers that have become a cornerstone of Kenya’s digital economy, introduced a new annual tax on 2.5% on car owners, and brought a range of taxes on “environmentally harmful” but everyday products such as packaging, plastics, tires, diapers, sanitary pads, computers and cell phones. The bill also aimed to apply a 16% VAT to specific financial services and foreign exchange activities.
Seven days of anger
For a population already stretched thin by rising living costs and growth, the finance bill was always going to be a tough sell. Protests against the bill have been ongoing since last week, even before it was passed in parliament. “We are seeking the absolute eradication of the bill,” Wanjira Wanjiru, a prominent activist involved in the protests, posted on X.
The protests, led by Kenyan youth under the banner “7 Days of Rage,” were characterized by well-organized rallies and passionate online movements. Using hashtags such as #RejectFinanceBill2024, #OccupyParliament and #TotalShutdownKenya, people came together to express their dissatisfaction. A petition on Change.org calling for the withdrawal of the bill received over 111,000 signatures as people called for the bill to be withdrawn.
In Nairobi, things turned particularly ugly when some protesters broke into and tried to set fire to the Parliament building. Authorities responded with force, fighting protesters with tear gas, water cannons and even live bullets. The government even sent military personnel to manage the “security crisis”.
At least 23 people were killed across Kenya and another 30 were being treated for gunshot wounds, the Kenya Medical Association said on Wednesday, according to Reuters. The number of injured is in the hundreds.
Ruto’s brutal response to the protests has meant that despite his now backtracking, many Kenyans still want him gone. “I have witnessed police brutality against peaceful protesters and it is clear that this goes beyond the Finance Bill. It is time for genuine leadership and meaningful change, not just symbolic gestures,” journalist Amina Wako wrote in X. Notably, Ruto on Tuesday referred to the protesters as “treacherous”.
As Kenyan writer and political analyst Nanjala Nyabola told Al Jazeera: “Unfortunately he is [Ruto’s] It has burned a lot of legitimacy and so it is not yet clear whether citizens will give it the benefit of the doubt.”
© The Indian Express Pvt Ltd
First uploaded on: 27-06-2024 07:30 IST