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26th June 2024 By The Global Heroes Articles

Kenyan President Reverses Tax Hikes Amid Deadly Protests

Kenyan President William Ruto withdrew planned tax hikes on Wednesday, yielding to pressure from protesters who stormed parliament and held nationwide demonstrations, threatening further action this week. This move marks a significant victory for a week-old, youth-led protest movement that escalated from online dissent against tax increases into widespread calls for a political overhaul, posing the most serious crisis of Ruto's two-year presidency.

Despite Ruto's concession, some demonstrators announced on social media their intention to proceed with a rally scheduled for Thursday, reiterating their demands for his resignation. Ruto declared in a televised address that he would not sign the finance bill, which included the tax hikes, following violent clashes between police and protesters that resulted in at least 23 deaths and numerous injuries, according to medical reports.

"Listening keenly to the people of Kenya who have said loudly that they want nothing to do with this finance bill 2024, I concede. And therefore, I will not sign the 2024 finance bill, and it shall subsequently be withdrawn," Ruto stated, with lawmakers applauding behind him.

Vice President Rigathi Gachagua urged young people to halt the protests to prevent further loss of life and property damage, blaming the intelligence services for providing poor advice. "There would have been no mayhem, but they slept on the job," Gachagua remarked, calling for the resignation of the head of the National Intelligence Service.

Protesters remained defiant, continuing to demand Ruto's resignation and promising further street actions. Prominent social justice activist Boniface Mwangi called for a "1-million-people march," condemning the government's response to the protests. Social media posts using the hashtag #tupatanethursday, a mix of Swahili and English meaning "see you on Thursday," signaled ongoing mobilization efforts.

Ruto announced plans to engage in dialogue with Kenyan youth and implement austerity measures, starting with cuts to the presidential budget, to address the country's financial challenges. He described Tuesday's loss of life as "very unfortunate." Kenyan police have not commented on the violence.

Even if Ruto's concession mitigates the immediate threat of further unrest, he remains caught between the competing demands of his citizens and international lenders like the IMF, which urges the government to reduce deficits for additional financing.

 

Kenya's sovereign dollar bonds remained largely stable despite Ruto's rejection of the finance bill. On Tuesday, police fired on crowds around parliament, who later breached the senate chamber and national assembly after lawmakers approved the tax measures.

The protests, documented in at least 35 of Kenya's 47 counties, began as online outrage over proposed taxes on bread and diapers and evolved into a nationwide movement demanding the bill's complete withdrawal. The demonstrations have seen thousands take to the streets in Nairobi and other cities.

While the young protestors have no official leader and have urged political opposition figures to stay away, some of Ruto's main rivals expressed their satisfaction with his climbdown. "Self-preservation has kicked in," opposition senator Edwin Sifuna posted on X.

Lawmakers had previously removed some tax hikes from the finance bill on Tuesday, including those on bread and cooking oil, but added others to prevent a budget shortfall.

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