Kenyan President William Ruto has withdrawn proposed tax hikes following intense protests that swept across the nation, resulting in violent clashes and the deaths of at least 23 people. The president’s decision comes after a youth-led movement mobilized mass rallies and stormed the parliament, marking the most serious crisis in Ruto’s two-year presidency.
Ruto’s Concession and Protesters’ Defiance
In a televised address, President Ruto announced, “Listening keenly to the people of Kenya who have said loudly that they want nothing to do with this finance bill 2024, I concede. Therefore, I will not sign the 2024 finance bill, and it shall subsequently be withdrawn.” This statement followed a day of violent confrontations between police and demonstrators, who condemned the tax increases and called for a political overhaul.
Despite Ruto’s climbdown, protesters remained defiant. Many took to social media, vowing to continue their planned rallies and demanding Ruto’s resignation. Boniface Mwangi, a prominent social justice activist, called for a “1-million-people march,” stating, “The arrogance is gone, but the lies are still there. Yesterday they unleashed goons and police to kill peaceful protesters. That will not stop us.”
Kalonzo Musyoka, a senior opposition leader and former vice president, also demanded Ruto’s resignation, stating, “Many Kenyans died. Many Kenyans suffered serious injuries. It is currently beyond the Finance Bill, 2024.”
Government Response and Security Measures
Vice President Rigathi Gachagua, addressing the nation, urged young people to call off the protests to prevent further loss of life and property damage. He blamed the intelligence services for failing to provide adequate warnings, stating, “There would have been no mayhem, but they slept on the job.” Gachagua called for the resignation of the head of the National Intelligence Service.
The International Monetary Fund (IMF) expressed concern over the unrest, emphasizing its commitment to supporting Kenya in overcoming its economic challenges. In a statement, the IMF said, “Our main goal in supporting Kenya is to help it overcome the difficult economic challenges it faces and improve its economic prospects and the well-being of its people.”
Ruto pledged to start a dialogue with the youth and implement austerity measures, beginning with budget cuts in the presidency. “The loss of life on Tuesday was very unfortunate,” Ruto remarked, expressing regret over the violence.
Future Implications and Continued Unrest
Even if Ruto’s concession temporarily alleviates the immediate threat of more unrest, he remains caught between the demands of his citizens and the expectations of international lenders like the IMF, which urges the government to reduce deficits for further financing.
Kenya’s sovereign dollar bonds remained stable despite the crisis, with trade values between 74.6 and 95 cents on the dollar. However, the longer-dated 2034 maturity bonds were at their lowest price, indicating market concerns about the country’s fiscal stability.
The protests, which started as an online movement against proposed taxes on essential goods like bread and diapers, evolved into a nationwide call for the complete withdrawal of the finance bill. Demonstrations took place in at least 35 of Kenya’s 47 counties, including President Ruto’s hometown of Eldoret.
Ruto’s government faces a delicate balance in addressing the fiscal deficit while managing the expectations and demands of a restless populace. The future of Kenya’s political and economic stability hangs in the balance as the country navigates this turbulent period.
Source: Reuters
