KENYA: FINANCE BILL PROTEST


 FIVE SHOT DEAD AS PROTESTERS BREACH KENYAS PARLIAMENT

As demonstrators enter parliament complex, fire erupts and police begin shooting, injuring 31; lawmakers were debating a contentious Bill featuring tax hike proposals that citizens opposed


LOCATING KENYA

Nestled in East Africa, Kenya occupies a strategic position along the equator, where it shares borders with 5 countries, North – Ethiopia and South Sudan, South- Tanzania, West – Uganda, and East- Somalia. This geographical position provides Kenya access to the Indian Ocean in the southeast.



DEBT TRAP

Kenya is facing significant financial difficulties or debt challenges as the country’s debt has risen substantially in recent years, driven by borrowings from various financial institutions such as the IMF and World Bank also from bilateral loans from countries like China, and Japan for various infrastructural developmental projects. The country’s large proportion of the budget goes to repaying these loans which resulted in less allocation of funds for essential services also many people have not been given their salaries. 

So the country is in a heavy debt trap, To reduce this burden Kenya’s government considered the recommendation of the IMF to deal with the debt challenge which includes several recommendations but the most important of them is fiscal consolidation which meant that, Implementing measures to control government spending and increase revenue collection, potentially through tax reforms or efficiency improvements in tax administration. Now, based on this recommendation the country introduced its Finance Bill 2024, which sparked protest.


THE PROTEST





The Finance Bill  2024 sparked the protest in Kenya. This controversial bill was introduced in Kenya’s parliament on June 25th by Kenyan President William Ruto, as a measure to increase tax revenues and address budget deficits. The bill includes several tax hikes, such as higher value-added tax (VAT), increased income tax rates, and new levies on fuel and other essential goods. The government argues that these measures are necessary to fund public services, and infrastructure projects, and to manage the national debt. However, the bill has faced strong opposition from the public, who are concerned about the rising cost of living and economic hardship.


The situation turned violent in the capital Nairobi, crowds began to throw stones at police and push back against barricades, making their way towards the parliament complex, which was sealed off by police in full riot gear although some parts of the building were set on fire on Tuesday. Several people were killed, and the unrest spread to other cities. Five persons were shot dead and 31 wounded on June 25 during protests. President William Ruto labeled the events as treasonous and vowed a strong response, deploying military support alongside police to restore order. Tear gases are being used to curb the protesters.

 

DEMAND AND RESPONSE

The protesters have demanded that lawmakers reject the finance bill as there is widespread frustration over the high cost of living and increased tax as proposed in the bill will only increase the hardships of the people. Many of the protestors particularly youth who had previously supported President William Ruto for his promises of economic improvements, felt compelled to take to the streets in opposition to the hardships imposed by these reforms.


On the 26th of June, Kenyan President William Ruto said that he won’t sign into law a finance bill proposing new taxes, a day after protesters stormed parliament and several people were shot dead. It was the biggest assault on Kenya’s government in decades.


ADVISORY TO INDIAN NATIONALS

As per the data of the Ministry of Foreign Affairs, there are at least 20000 NRIs and 60000 PIOs in Kenya. The Indian High Commission in Kenya has advised Indian nationals to exercise utmost caution given the prevailing situation in Kenya.


“Given the prevailing tense situation, all Indians in Kenya are advised to exercise utmost caution, restrict non-essential movement, and avoid the areas affected by the protests and violence till the situation clears up,” the Indian High Commission advisory.

 

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