Home » Kenyans Protest New Finance Bill Amid Rising Debt Concerns

Kenyans Protest New Finance Bill Amid Rising Debt Concerns

Kenyans Protest New Taxes Amid Economic Hardships

by Motoni Olodun

Protests have erupted across Kenya in response to a new finance bill that citizens say will exacerbate the country’s already high cost of living. The bill, introduced by President William Ruto’s administration, aims to address the growing national debt but has been met with widespread opposition from various sectors of society.

The contentious bill proposes several new taxes, including a housing levy, higher fuel taxes, and increased Value Added Tax (VAT) on basic goods. These measures are part of the government’s efforts to boost revenue and manage the country’s substantial debt burden. Kenya’s debt has surged in recent years, with the government borrowing heavily to fund infrastructure projects and other initiatives.

Critics argue that the new taxes will disproportionately impact the poor and middle class, who are already struggling with high inflation and unemployment. Demonstrations have taken place in major cities, including Nairobi, Mombasa, and Kisumu, with protesters calling for the bill to be repealed.

Mary Wanjiru, a vendor in Nairobi, expressed her frustration: “Life is already hard. How are we supposed to survive with even more taxes? This government needs to find another way.” Her sentiments are echoed by many Kenyans who feel that the government is out of touch with the daily struggles of its citizens.

In response to the protests, President Ruto has defended the bill, stating that the measures are necessary to stabilize the economy and ensure long-term growth. “We must all make sacrifices for the good of our country. These changes are essential to reduce our debt and build a sustainable future,” he said in a recent address.

The opposition, led by Raila Odinga, has strongly condemned the bill, accusing the government of imposing harsh economic policies without considering the plight of ordinary Kenyans. Odinga has called for mass protests and urged the government to explore alternative methods of raising revenue, such as curbing corruption and reducing government expenditure.

Economic experts are divided on the issue. Some support the government’s stance, arguing that the new taxes are a necessary evil to address the fiscal deficit and debt crisis. Others believe that the bill could stifle economic growth and lead to social unrest. Dr. David Ndii, an economist, noted, “While the intention behind the bill is understandable, its implementation could push more people into poverty and hurt economic recovery.”

The rising cost of living in Kenya has already led to a surge in poverty levels, with many households unable to afford basic necessities. The introduction of additional taxes could exacerbate this situation, leading to increased hardship for millions of Kenyans. Reports indicate that food prices have soared in recent months, putting a strain on family budgets.

Despite the challenges, there are efforts underway to find a middle ground. Civil society organizations and religious leaders are advocating for dialogue between the government and its citizens. They propose revising the bill to mitigate its impact on the most vulnerable populations. Additionally, there is a push for enhanced transparency and accountability in how tax revenues are used, to ensure that they directly benefit the public.

International organizations are also monitoring the situation. The International Monetary Fund (IMF) and World Bank have both highlighted the importance of fiscal reforms for Kenya’s economic stability but stress the need for measures that do not disproportionately burden the poor.

As the protests continue, the resilience and determination of the Kenyan people remain evident. There is hope that through constructive dialogue and compromise, a solution can be reached that addresses the country’s economic challenges while protecting the welfare of its citizens.

Source: AP News

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