Protests Erupt in Kenya Over New Tax reforms, 3 killed in Police Firing

During demonstrations outside the parliament building in Nairobi on Tuesday, activist Auma Obama, who is the half-sister of former US President Barack Obama, as shown by a CNN interview. Protests erupted in the area with thousands coming to participate after new tax proposals were introduced in the annual budget legislation, burning part of the building and sending lawmakers fleeing through underground tunnels. After the use of tear gas and water cannons failed to disperse the crowd, demonstrators ended up drawing fire from police. According to the Kenyan Medical Association, five protestors are reported to have been killed, with at least 31 were wounded and injured.

This is perhaps the first direct assault against the government in decades. Two years ago, President Ruto Williams won the election and attained presidency by campaigning as a champion for the working poor, but has failed to follow through on his promises as he finds himself stuck between the demands of lenders. Ruto, whose administration introduced the proposals, called the protests “treasonous” and vowed to clap down on the unrest “at whatever cost”.

Kenyans have been undergoing an intense financial setback following the effects of the pandemic, the war in Ukraine, and two consecutive years of intense drought and depreciation of currency. The finance bill aims to raise $2.7 billion in taxes to reduce the budget deficit and state borrowing. At 68%, Kenya’s public debt stands higher than the 55% limit recommended by the World Bank. As the administration attempts to deal with liquidity challenges caused by uncertainties in its capacity to acquire capital from financial markets, Kenya has turned to the International Monetary Fund. However, the IMF urges Kenya to meet revenue targets first before being able to access more funding.

In response to the protests, the government said it would make concessions, promising to scrap the new policies on goods like bread, cooking oil, financial transactions, etc. However, the finance ministry claims that the concessions would blow a $1.56 billion hole in the 2024-25 budget, forcing the government to make spending cuts and raising taxes elsewhere.

The violence that has erupted in Nairobi has become a cause of concern not just domestically, but amongst the international community. Washington claims that they are closely monitoring the situation, and urges calm. In a joint statement, ambassadors from countries like the US, Britain, and Germany said that they were worried about the violence and called for restraint from both sides. Meanwhile, in Nairobi, opposition calls for President Ruto to step down from office. “Ruto must go, Ruto must resign, he must do the honorable thing,” said senior opposition leader Eugene Wamalwa on TV. Another opposition leader Raila Odinga also called for the immediate withdrawal of the new taxation policies, claiming that the sudden eruption of violence, detention, and surveillance being perpetrated by police would not make way for the much-needed dialogue the youth demands for.

The bill which had been authored by Ruto’s administration had been approved by the Parliament and was sent to the legislature to have it signed by the President. The Parliament will meet on Tuesday to vote on proposed amendments to the bill.

Also Read: Proposed Finance Bill Sparks Deadly Protests in Kenya

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