Demonstrators are angry at a new finance bill that President Ruto says is necessary to offset heavy public debt.
Protesters in Kenya are set to take to the streets again, calling for a nationwide strike to pressure the government over controversial tax reforms currently before parliament. The government has warned against violence, insisting that protests must end by 6:30 pm local time or sunset, whichever comes first. Critics of President William Ruto, however, blame the government for the violence that has marked the protests so far.
Recent Clashes and Casualties
Police opened fire on protesters last Thursday, resulting in one death, 200 injuries, and over 100 arrests, according to Amnesty International and other human rights groups. The protests, led primarily by young Kenyans, have been largely peaceful but turned violent as crowds grew in Nairobi. Anti-riot police used tear gas and water cannons to disperse demonstrators attempting to breach government offices in the city’s business district. The protests have since spread to other cities, including Nakuru, Kisumu, and Eldoret, President Ruto’s hometown.
The Controversial Finance Bill
The finance bill, introduced in May, has sparked intense debate and widespread opposition. It includes new levies on monetized digital content creation and a 5 percent tax increase on digital payments. Particularly contentious are the proposed 16 percent value-added tax (VAT) on bread and a 25 percent excise duty on domestically produced vegetable cooking oil. Additionally, the bill proposes a 2.75 percent income charge for salary earners enrolled in the national medical insurance plan and a 2.5 percent annual tax on motor vehicles. Protesters argue that these taxes will increase the cost of living and give revenue authorities excessive powers to access bank and mobile money accounts.
Government Concessions
Following initial protests, parliament announced emergency amendments last Tuesday. Chairperson of the finance committee, Kuria Kimani, stated that taxes on bread, oil, motor vehicles, and financial transactions would be rolled back. An “Eco Levy” on plastic goods would only apply to imported items, and medical and housing insurance levies for salary earners were reduced. Despite these concessions, protests continued as many demanded the entire bill be dropped.
Political and Social Dynamics
The protests are politically sensitive, coming amid rising food and living costs in Kenya. Demonstrators claim that since President Ruto’s government took office in 2022, they have faced increasing taxes without improved public services. Last year, a finance law introduced a 1.5 percent housing tax on salaried workers and doubled VAT on petroleum products, further straining the economy.
Ruto, who campaigned on promises to improve the lives of Kenya’s working-class “hustlers,” argues that the tax hikes are necessary to manage an 11.1 trillion Kenyan shillings ($82 billion) public debt, much of which is owed to China. This debt accumulated during the previous government of Uhuru Kenyatta, in which Ruto was vice president, due to significant infrastructural projects, including the Standard Gauge Railway (SGR) line connecting Nairobi to Mombasa.
Government’s Stand and Protesters’ Determination
Despite the backlash, Ruto insists that the tax reforms are essential for the country’s financial stability. He emphasizes that Kenya is a democratic country where decisions are made through institutions, public participation, and court processes. Over the weekend, Ruto expressed willingness to engage directly with protesters, although no meeting has been organized yet.
Parliament’s Response
Parliament members loyal to Ruto have pressed ahead with the bill. On Thursday, 204 out of 359 MPs voted in favor of the amendments, with 115 opposing. Proponents argue that the bill will generate revenue to employ more teachers, allocate funds to local governments, and improve infrastructure. Opposition MPs, however, believe the bill will only add to the burden on Kenyans.
Looking Ahead
The bill is expected to pass into law after a third and final reading this week, taking effect from July 1, once Ruto signs it. Protesters, however, remain resolute, pledging to continue demonstrations until the bill is withdrawn. They are set to return to the streets when Parliament reconvenes.
Young Kenyans, many of whom have not voted before, are closely watching the MPs’ actions. They are mobilizing to register and vote out Ruto’s cabinet in the next elections. Some are also calling for Ruto to step down, signaling a deepening political crisis in the country. As the situation unfolds, Kenya remains on edge, bracing for potential further unrest.
