NAIROBI, Kenya – Kenya President William Ruto announced that a contentious finance bill containing significant tax hikes will be withdrawn.
The decision comes after more than 20 people were killed and parliament was ransacked by protesters opposing the legislation.
“I concede and, therefore, I will not sign the 2024 finance bill and it shall subsequently be withdrawn,” Ruto declared during a press briefing on Wednesday, June 27, 2024. “The people have spoken.”
The bill’s withdrawal marks a significant shift for Ruto’s administration, which has been surprised by the intensity of the opposition.
Protests erupted across the country last week, growing violent on Tuesday when lawmakers passed the bill and police fired live rounds into crowds attacking the parliament complex, which was set partly ablaze.
The Kenya National Commission on Human Rights, a state-funded body, reported 22 deaths and 300 injuries, stating that an investigation would be launched into the violence.
The bill proposed tax increases to help service Kenya’s massive debt of approximately 10 trillion shillings ($78 billion), which is about 70 percent of the nation’s GDP.
Ruto warned that the bill’s withdrawal would create a significant shortfall in funding for development programs aimed at supporting farmers and schoolteachers.
“Withdrawing the finance bill means we will face substantial challenges in funding our development initiatives,” Ruto said, emphasising the importance of these programs as the East African nation struggles to manage its foreign debt.
The protests, initially peaceful, turned violent as frustration over the rising cost of living peaked last week during parliamentary debates on the bill.
The rallies underscored the public’s growing discontent with economic conditions and the government’s proposed solutions.
As the administration grapples with the fallout from these events, the focus now shifts to finding alternative means to address the country’s fiscal challenges without exacerbating public unrest.
