Kenyan President William Ruto has refused to sign a controversial tax increase bill that has sparked nationwide protests resulting in at least eight deaths and hundreds of injuries. In a statement issued on Tuesday, Ruto expressed his condolences to the families of the victims and announced his willingness to discuss amendments to the bill with youth representatives and other political forces.
Tuesday’s protests saw demonstrators storm the National Assembly and the Senate in Nairobi, leading to clashes with police who opened fire on the crowds. The government responded by deploying the military to assist the police in quelling the unrest, which began on June 18th after the bill was made public.
The proposed legislation seeks to raise an additional 346.7bn shillings (about $2.67bn) through various tax increases, including raising the railway development levy and import declaration fee. Lawmakers also introduced an eco-levy on imported electronics to address environmental concerns.
President Ruto has been under pressure to increase government revenue to fund his 31 billion-dollar budget for the 2024/2025 financial year amid rising debt repayments. Kenya’s current debt stands at $85.4bn, with almost half of all revenue going towards debt servicing.
Analysts have warned that the government’s hard-line stance and the protesters’ determination to continue demonstrating could worsen the crisis. Duncan Okach, an advocate, has called on the president to acknowledge the protesters’ grievances and initiate dialogue. Alphonse Kanga, chairman of the National Council of Churches of Kenya, Nairobi Region, has stressed the need for a “win-win solution” that addresses the concerns of both the government and the public.
Professor Macharia Munene, a historian and international relations expert, has pointed to the public perception that the World Bank and the International Monetary Fund (IMF) are driving the new taxation measures as a significant factor fueling the protests. He has called on these institutions to address these concerns.
Economist Henry Wandera has suggested that the government needs to better explain the country’s economic situation to the public, particularly the burden of debt repayments, to justify the need for the proposed tax increases.
On Wednesday, National Assembly Speaker Moses Wetangula called for structured and lawful dialogue to resolve the crisis, while condemning the violence and destruction of property that occurred during the protests.
