- Young people, particularly Generation Z, have taken to the streets of the capital Nairobi, and other cities demanding rejection of new tax proposals.
- Critics argue that these measures will disproportionately affect the lower and middle classes of the economy, further straining an already burdened population.
- President Ruto justifies these measures as necessary steps to alleviate the country’s mounting debt.
For Kenya’s President Ruto and his administration, a confluence of failed promises, high cost of living, and hopelessness among the youth is threatening to tear his government as millions of youth mount widespread civil unrest, protesting an increase in taxes in Finance Bill 2024.
Young people, particularly Generation Z, have taken to the streets of the capital Nairobi, Mombasa, Nakuru, Kisumu, Eldoret, and Nyeri vehemently demanding the rejection of the Bill, which is under debate in Parliament.
The movement, which appears to be spearheaded by vocal activists and amplified by social media, is the latest pointer to swelling discontent with President William Ruto’s proposed tax increases, which many believe will exacerbate an already difficult economic situation.
The Finance Bill 2024: A controversial tax proposal
The Finance Bill 2024, which is set for a vote any day from today, proposes several tax increases that the government argues are necessary to address the budget deficit of about Kes600 billion and fund other key public services.
However, critics argue that these measures will disproportionately affect the lower and middle classes of the economy, further straining an already burdened population that is grappling with thinning incomes, high cost of goods and services, and sky-high interest rates.
Some of the outstanding provisions in the Bill include higher taxes on essential goods and services, increased VAT on previously zero-rated items such as ordinary bread, and new levies on small and medium-sized enterprises (SMEs). Overall, the Bill is part of a long-term plan to introduce a series of tax increases aimed at raising Kenya’s tax revenue as a percentage of GDP from the current 14 percent to an ambitious 22 percent by 2027.
Part of the measures include increasing the fuel tax and implementing a levy to fund affordable housing projects, a provision that was introduced in 2023. President Ruto justifies these measures as necessary steps to alleviate the country’s mounting debt burden and finance essential job creation initiatives.
However, the proposed taxes have sparked public outcry. Critics argue that the tax hikes will exacerbate the already dire economic situation for many Kenyans, who are struggling with soaring costs of basic commodities such as fuel, electricity, and food.
Nyeri Catholic Archbishop Anthony Muheria voiced the sentiments of many, stating, “The poor are not breathing” under the weight of over-taxation. His call for the government to consider the voices of ordinary citizens highlights a growing disconnect between the ruling administration and the populace.
Generation Z, characterized by their digital savviness and social consciousness, has been at the forefront of the protests. Using platforms like X (formerly Twitter) they have mobilized large crowds and generates global online discourse under the hashtag #REJECTFINANCEBILL2024. This hashtag has trended for days, with tweets highlighting the negative impacts of the proposed taxes and rallying people to join the protests.
Boniface Mwangi, a veteran activist, has been a central figure, urging thousands to participate in both physical protests and online activism. One of his tweets reads, “We pay taxes, and the money is swindled. Our schools lack teachers, and hospitals lack doctors, yet the Finance Bill allocates millions to the First Lady’s office.”
Read also: Finance Bill: Kenyan MPs succumb to public pressure, drop inflicting taxes
Voices from the streets and online
The outpouring of public sentiment against the Finance Bill has been captured on social media. Tweets from activists and everyday citizens alike paint a picture of a nation united in its call for fairer economic policies.
@HoneyFarsafi, a popular online activist, tweeted, “Today, we stand against oppression. The Finance Bill 2024 is not just about numbers; it’s about our future. #REJECTFINANCEBILL2024.
@MwangiGitau shared his frustration, tweeting, “Our MPs must choose today: do they represent the people or their pockets? We’ll be outside Parliament to make sure they know where we stand. #OccupyParliament.”
These tweets and many others have galvanized public opinion, with many echoing the sentiment that the Bill is a betrayal of the public trust.
On June 18, as Parliament convened to discuss the Bill, thousands of protesters gathered outside the parliamentary buildings in Nairobi. The demonstrations, though initially peaceful, quickly escalated as police deployed tear gas to disperse the crowds. Several protesters, including prominent activists, were arrested.
The streets of Nairobi were a battleground, with protesters chanting “Ruto must go” and demanding immediate action from their representatives. Despite the heavy police presence and the arrests, the resolve of the protesters remained unshaken. As one tweet from @OccupyParliament2024 put it, “We will not be silenced. Our voices are our power, and we will use them to reject this unjust Bill.”
Broader implications for Kenya
The protests against the Finance Bill 2024 highlight deeper issues within Kenyan society. Economic inequality, government accountability, and public trust are at the forefront of the current crisis. The government’s insistence on pushing through with tax hikes, despite widespread opposition, has only fueled the perception that it is out of touch with the needs of ordinary citizens.
Additionally, the unrest has significant economic implications. Prolonged protests could disrupt business activities, deter investments, and slow economic growth. Already, there are signs that the tourism industry, a critical sector for Kenya is feeling the effects as potential visitors grow wary of the instability.
Despite the widespread opposition, President Ruto remains steadfast in his resolve to implement the tax measures. Speaking to Harvard Business School’s Class of 2025, Ruto noted that the tough measures in place are essential for stabilizing Kenya’s economy and avoiding a debt crisis. “There is no free lunch,” Ruto declared, urging Kenyans to tighten their belts in anticipation of the difficult economic adjustments ahead.
