Throughout the past few months, many massive protests have erupted throughout Kenya because young Kenyans want to take action against the government’s new tax hikes. Many have mobilized to spread this information through social media platforms such as TikTok, Instagram, and X which popularized hashtags such as #OccupyParliament and #RejectFinanceBill2024 to maintain the momentum of the movement and for successful crowdfunding.
Protests have even reached Nairobi, the nation’s business capital district, which is in carnage now with demonstrators chanting against the president. At the same time, police use any means necessary to disperse the riots. This means using tear gas, water cannons, and even live bullet rounds. More than 50 innocent people have been killed since mid-June during these protests as well as at least 400 injured during these violent protests.
What is the bill that caused this?
The Kenyan government has proposed changes to the current tax system through a bill that essentially reforms it completely by wanting to raise 2.7 billion in additional taxes to remove budget deficits as well as borrowing. It introduces the SEP tax set at 30% of gross transaction value which will replace the existing Digital Service Tax (DST) only set at 1.5%. The bill also creates a Minimum top-up tax of 15% for residents with permanent establishments. Finally, this bill also increases taxes on a massive variety of basic commodities such as bread, sugar, and cooking oil. This bill impacts all social classes, aiming to reframe and broaden the tax base in Kenya while enhancing tax compliance throughout the country.
President Ruto claims that he was “Introducing higher taxes to eliminate the country’s debt.” This debt stands at 80 billion dollars currently. President Ruto additionally argued that citizens were overall “undertaxed.”
The equality behind the bill affects people who are impoverished and of the middle class immensely which greatly affects the quality of life. People began to protest due to the realization of the challenges created by this bill and how this bill makes it harder for their overall survival.
Auma Obama, sister of President Barack Obama, argues “It is not right. These young people need a future. They have no jobs! Over 50% of the population are under 35 and have no jobs! We’re taxing the jobless and we’re telling them to take a loan.” This is the central ideology behind the current protests. The people also believe that the government is offloading the problems onto their current citizens. “We are already paying taxes, and the government is not doing much with it– it gets stolen. So how can we trust them with more?” Makena Kahuha, a famous Kenyan content creator, told DW.
The Economics
Mr. Ruto has taken a disruptive economic path in his efforts to position himself both domestically and globally. However, the resulting mass protests have tarnished his image. Advocate Wanjiru Gikonyo highlights the historical context of this financial crisis, attributing it to Ruto’s investment in numerous unprofitable infrastructural projects, such as the failed renewable energy hub.
Gikonyo also notes the inefficiency of the economy under the current administration, which has exacerbated the debt issues rather than addressing them. Instead of curbing spending, the government has engaged in activities that increase debt, such as overspending on luxury cars. Although Ruto’s government initially promised to reduce taxes, they did the opposite without notifying the public, leading to widespread discontent in a country where many are already struggling.
These economic missteps and broken promises have not only intensified the financial crisis but have also fueled public dissatisfaction and unrest, further complicating Ruto’s efforts to establish a positive image both within Kenya and on the global stage.
How the situation has been changing
The movement has prompted the government to take greater accountability and revise the bill. In response, the government has removed some of the most controversial tax hikes, including the 16% tax on bread. Additionally, the tax on items contributing to plastic waste, such as diapers, will now only apply to imported goods that produce plastic waste. President Ruto initially described the protests as “treasonous events” but has since refrained from signing the bill into law. He now pledges to engage with young Kenyans to collaboratively determine the country’s next steps.
By listening to public concerns, Ruto’s government demonstrates a willingness to adapt its policies toward Young Kenya. The revised approach to the bill reflects a more caring understanding of the young Kenyan people and is a step forward in effectively engaging the youth in Kenyan politics as well as the economy.
Written by Aniruddh Sajan
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