Kenya: Pres. Ruto Withdraws Tax Reforms After Deadly Protests

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Facts

• Kenyan Pres. William Ruto has withdrawn a finance bill passed by parliament on Tuesday, which included tax increases, following a week of clashes between police and protesters in at least 35 of the country's 47 counties.¹
• In a TV address on Wednesday, Ruto said that 'the people have spoken' and that he will not sign the contentious legislation. He added that he will now enter into a dialog with the Kenyan youth.²
• Ruto also announced 'budget cuts and austerity measures' to reduce expenditure in his office and the government's executive branch, including cutting funds for travel, hospitality, and vehicle purchases.³
• Ruto's backtrack comes after at least 22 people were killed in the largest protests since his election in 2022, with some storming parliament and setting parts of it ablaze on Tuesday.⁴
• However, despite his decision not to sign the finance bill, protesters vow to 'occupy State House,' the President's office and residence on Thursday, as well as the offices of the World Bank and International Monetary Fund (IMF) on Friday.⁵
• The protests began as an online initiative against planned taxes on various goods and services — including a 16% Value-Added Tax (VAT) on bread, tax hikes on mobile money transfers, and a 2.5% annual tax on cars.⁶

Sources: ¹Reuters, ²Al Jazeera, ³The Standard, ⁴BBC News, ⁵Guardian and ⁶Context.

Narratives

• Narrative A, as provided by Kenyans.co.ke. Ruto's decision to abandon the planned tax hikes and incorporate the protesters' demands into the 'Finance Bill 2024' proves that he is a democratic leader for whom people's will is paramount. In light of the tragic loss of life, the IMF will assist the Kenyan government in addressing its serious economic challenges and improving its financial prospects. Only robust, sustainable, and inclusive growth will ensure dignity and prosperity for all Kenyans.
• Narrative B, as provided by Citizen Digital. Ruto's U-turn on the proposed tax hikes is a victory for Kenya's civil society, which exercised its democratic right to protest and was met with massive state violence. Ruto is a puppet of the notorious IMF and its austerity agenda, which is squeezing the people to generate 'growth.' To consolidate the national budget and create prosperity for all Kenyans, Ruto should first tackle corruption and nepotism and address the people's legitimate concerns.

Predictions