Nairobi, June 26, 2024 — In a decisive move, Kenyan President William Ruto has rejected the controversial Finance Bill 2024 following intense nationwide protests. The bill, which proposed several tax hikes, faced significant opposition due to concerns over its potential impact on the cost of living.
The Finance Bill initially aimed to increase government revenue through higher taxes on essential items, including a 16% Value Added Tax (VAT) on basic goods like bread, as well as levies on mobile money transactions and vehicle ownership. These measures were intended to reduce the country’s reliance on external borrowing and address the fiscal deficit [❞].
However, widespread public demonstrations erupted, with many Kenyans, particularly the youth, taking to the streets to express their dissatisfaction. The protests, marked by the hashtag #OccupyParliament, saw clashes with police and hundreds of arrests, highlighting the deep-seated frustrations over the proposed tax increases .
In response to the outcry, President Ruto announced that he would not endorse the bill in its current form. He acknowledged the need for fiscal reforms but emphasized that any measures must be balanced against the economic realities faced by citizens. This rejection signifies a significant victory for the protesters and indicates the government’s willingness to reconsider its approach to economic policy amidst mounting public pressure .