📷 Image Credits: The Indian Express
Kenya’s President William Ruto faced immense backlash in response to a controversial finance bill that aimed to raise an additional $2.7 billion in taxes to alleviate the country’s heavy debt load. The Finance Bill 2024, passed by a majority in the Kenyan parliament, introduced a range of tax increases that sparked widespread protests. The bill included a 16% Value Added Tax (VAT) on bread, higher taxation for mobile transfers and car owners, as well as taxes on environmentally damaging products. Additionally, it proposed applying a 16% VAT to specific financial services and foreign exchange activities.
The bill’s passage led to demonstrations under the banner ‘7 Days of Rage’, with protestors using social media hashtags like #RejectFinanceBill2024 and #OccupyParliament to express their discontent. The unrest escalated in Nairobi, where protestors attempted to set fire to the Parliament building, prompting a forceful response from authorities, including the deployment of the military. Tragically, the protests resulted in the deaths of at least 23 people, with many more injured.
President Ruto, who had initially supported the bill, ultimately backtracked in the face of mounting pressure, announcing that he would not sign the legislation. Despite this reversal, many Kenyans remain critical of Ruto’s leadership, calling for genuine change beyond symbolic gestures. The country’s dire fiscal situation, with a debt burden exceeding 68% of its GDP, highlights the challenges posed by unsustainable borrowing and the need for comprehensive financial reforms to ensure economic stability and social well-being.
