23 killed, parliament building set on fire as citizens protest proposed tax hike

As many as 23 protesters have been shot dead by the police in Kenya and many more were injured during demonstrations against the proposed Finance Bill, 2024 on June 25, 2024, medical teams in Nairobi have confirmed. The protests turned violent as young protesters overwhelmed police forces and stormed the East African country’s parliament in opposition to the bill, which is now awaiting presidential assent.

The demonstrations, which began fermenting on social media and have spread to several cities and major towns across Kenya, are fuelled by widespread anger over tax increases proposed in the bill. The demonstrators, mostly believed to be of age 18-28, are calling for President William Ruto to resign and voicing strong opposition to the planned levies.

“Ruto must go! Ruto must go… he promised jobs and we can’t find any. All we see are taxes after taxes and rising cost of living,” a protester was captured yelling on TV.

Following the deadly protests, President Ruto made a statement at night: 

Today, Kenya experienced an unprecedented attack on its democracy, rule of law and the integrity of its constitutional institutions. An otherwise legitimate protest by youth was infiltrated and hijacked by criminals, leading to loss of lives and destruction of property and desecration of institutions and emblems of our sovereignty. I promise Kenyans that we will provide a full and effective response to today’s treasonous events. As you go to bed, I assure you it will not happen again.

Key among the proposed tax measures are new levies on basic commodities such as bread, vegetable oil and sugar, as well as a new motor vehicle circulation tax set at 2.5 per cent of a car’s value, payable annually. Also in the mix is an ‘eco levy’ on most manufactured goods, including sanitary towels and diapers. 

The bill planned to raise existing taxes on financial transactions made using mobile phones. Over 80 per cent of banked and unbanked Kenyans prefer mobile phone money transactions due to its safety and unmatched convenience.

Senior opposition leader Raila Odinga has been vocal in his criticism, calling for the immediate withdrawal of the Finance Bill to allow for dialogue. He expressed his concern over the government’s actions, stating, “I am disturbed at the murders, arrests, detentions and surveillance being perpetrated by police on boys and girls who are only seeking to be heard over taxation policies that are stealing both their present and future.”

The authorities and pro-government Members of Parliament defended the tax measures as necessary tools to fund development programmes and reduce public debt. However, last week, President Ruto endorsed recommendations to scrap some of the new levies, including those on car ownership, bread and the eco levy (only on locally manufactured plastics) after widespread outcry. The finance ministry has warned that such changes would create a 200 billion Kenyan shilling ($1.56 billion) deficit in the 2024/25 fiscal budget, necessitating spending cuts or more borrowing.

The opposition and protesters argued that these concessions were insufficient and demanded the complete abandonment of the bill. Parliament has, nevertheless, approved the bill with the majority of the proposed amendments, moving it to a Third Reading. The next step is for the president to sign the legislation, although he can send it back to parliament if he has any objections.

President Ruto, who was elected nearly two years ago on the planks of championing Kenya’s working poor, finds himself caught between the demands of international lenders, like the International Monetary Fund (IMF), and the socio-economic needs of a struggling population. IMF has urged the Kenyan government to cut deficits to secure more funding.

“Kenya is not IMF’s lab rat,” a placard carried by one of the protesters read.

The East African country has been grappling with multiple economic challenges, including the lingering impacts of the COVID-19 pandemic, the war in Ukraine that disrupted Kenya’s key supplies like maize and fertiliser, two consecutive years of prolonged droughts and currency depreciation. The finance bill aims to raise an additional $2.7 billion in taxes to help manage Kenya’s heavy debt load, with interest payments alone consuming 37 per cent of annual revenue.

Despite the government’s concessions and the President’s stern warning, the protests show no signs of subsiding, as the public continues to demand more substantial changes and relief from the proposed tax burdens.