Seeing the hostile response, Kenyan president William Ruto has said in a press briefing that he will not sign the controversial finance bill.
The Finance Bill 2024, passed on Tuesday by the Kenyan parliament aimed to raise an additional $ 2.7 billion in taxes as part of the government’s effort to lighten Kenya’s heavy debt load.
At present, Kenya’s public debt amounts to 68% of its Gross Domestic Product (GDP), which beyond the IMF adviced limit of 55%. Interest payments alone are consuming 37% of Kenya’s annual revenue.
Among other things, the finance bill introduced a 16% Value Added Tax (VAT) on bread, increased the rate of taxation for mobile transfers, introduced a new annual 2.5% tax on car owners, and brought in a gamut of taxes on “environmentally damaging” on daily use products like packaging, plastics, tires, diapers, sanitary pads, computers, and mobile phones. The bill also aimed to apply a 16% VAT to specific financial services, and foreign exchange activities. Protests against the bill have been ongoing since last week, even before it was passed in parliament
7 DAYS OF RAGE
The demonstrations, led by Kenya’s youth under the “7 Days of Rage” banner, have been characterised by well-organised rallies and passionate online movements. Using hashtags such as
In Nairobi, things got particularly ugly when some protestors stormed, and tried to set fire to the Parliament building. Authorities responded forcefully, fighting off protestors with tear gas, water cannon, and even live bullets. The government even sent in the military to manage the “security crisis”, leading to death of atleast 20.
Ruto’s brutal response to protests has meant that despite him now backing down, many Kenyans still want him gone. “I witnessed police brutality against peaceful protesters, and it’s clear that this goes beyond the Finance Bill. It’s time for genuine leadership and meaningful change, not just symbolic gestures,” journalist Amina Wako wrote on X. Notably, Ruto, on Tuesday, had referred to protestors as “treasonous”.
As Kenyan political writer and analyst Nanjala Nyabola told Al Jazeera: “Unfortunately he’s [Ruto’s] burnt through a lot of legitimacy and so it remains unclear whether citizens will give him the benefit of the doubt.”
