Live Markets, Charts & Financial News

Police fire teargas as Kenya anti-tax protesters demonstrate nationwide

0 3

Police fired tear gas to disperse demonstrators in the capital, Nairobi, on Tuesday, as a nationwide demonstration against proposed tax increases began.

Organizers also called for a general strike against the finance bill, which aims to collect $2.7 billion in additional taxes as part of an attempt to tame a public debt that has ballooned over the past decade.

President William Ruto won the election almost two years ago on a platform of championing Kenya’s working poor.

He now says his heavy debt burden, with interest payments alone consuming 37 percent of annual revenue, has limited his ability to deliver on some of his promises.

It is caught between the competing demands of lenders such as the International Monetary Fund, which is urging the government to reduce the deficit, and a population suffering from increases in the cost of living caused by inflation and steep tax rises passed in last year’s finance bill. .

Thousands took to the streets of the capital, Nairobi, and more than six other cities during two days of protests last week.

Although the protesters in Nairobi were almost entirely peaceful, according to Reuters According to journalists and human rights organizations, police repeatedly fired tear gas and water cannons. One person was killed, in what the Police Oversight Board said was “the result of a police shooting.”

A police spokesman did not respond to requests for comment. In remarks on Sunday, Ruto praised the protesters, saying they were peaceful and that the government would deal with them moving forward.

While protesters initially focused on the Finance Bill, their demands have expanded, with many chanting on Thursday: “Ruto must go!”

Organic movement

Political analysts say the protests pose a particular challenge for Ruto because, unlike previous demonstrations led by political parties, they lack an official leader who can be appeased through private negotiations and inducements.

Last week’s demonstrations looked like an organic movement organized online by a group of young Kenyans.

The government has already made some concessions, promising amendments to the draft law to cancel proposed new taxes on bread, cooking oil, car ownership and financial transactions. But this was not enough to satisfy the protesters, who want to repeal the entire bill.

On Tuesday afternoon, lawmakers will debate the amendments, which the Finance Ministry says will plug a 200 billion Kenyan shillings ($1.56 billion) gap in the 2024/25 budget and force the government to make spending cuts or raise taxes elsewhere.

“The alternative Ruto proposes is to focus more on reducing government wastefulness, but forming a political coalition makes that option less attractive,” said Fergus Keel, a political analyst at London-based think tank Chatham House.

Leave A Reply

Your email address will not be published.