Kenyan President William Ruto halts contentious finance bill amidst national unrest

In a critical move on June 26, Kenyan President William Ruto decided against signing the controversial Finance Bill 2024, opting instead to withdraw it and send it back to parliament. This decision came in response to a series of nationwide protests that not only turned violent but also resulted in the tragic loss of at least 23 lives and significant property damage, including assaults on parliament buildings. President Ruto, addressing the nation, stated, “I concede and therefore I will not sign the 2024 finance bill and it shall subsequently be withdrawn. The people have spoken.”

The protests against the proposed tax increases have marked one of the most severe political crises for the Ruto administration since its inception nearly two years ago. Public sentiment has sharply turned, with comparisons being drawn to the governance style of former President Daniel arap Moi. The parliamentary recess looming, the Speaker of Parliament may need to recall lawmakers to deliberate on the President’s proposed amendments to the finance bill.

In a pivotal move, Kenyan President William Ruto withdraws the contentious Finance Bill 2024 amidst violent protests and public dissent

The finance bill aimed to increase government revenue by $2.7 billion through various tax hikes, including a controversial 16% VAT on basic goods and services, a 2.5% tax on motor vehicles, and an increased excise duty on mobile money transfers from 15% to 20%. These measures sparked widespread outrage, viewed by many as prioritizing international lender agreements over citizen welfare. The protests highlighted deep-seated discontent with economic policies perceived as detrimental to the average Kenyan.

Initially, the finance bill proposed several stringent tax measures but was amended on June 20 after intense public backlash and parliamentary debates. Key amendments included the removal of VAT on essential goods and a reduced tax increase on mobile money transactions. Despite these changes, the approval of the bill led to intensified protests, culminating in demonstrators storming the parliament and clashing with security forces.

The withdrawal of the Finance Bill 2024 represents a significant backtrack by President Ruto’s government, indicating a sensitive response to public outcry and the violent unrest. This scenario underscores the challenges facing governments when balancing fiscal responsibilities with public approval. The immediate future for Kenya‘s economic policies remains uncertain, as the government will need to find alternative methods to bridge fiscal deficits without alienating the populace.