Kenya in turmoil: Will national strike spark renewed protests against taxes? | Protest news

Protesters plan to take to the streets in Kenya on Tuesday. They have called for a nationwide strike to put pressure on the government regarding the controversial tax reforms that are before parliament.

The government has warned protesters against violence and insisted they must end their protests by 6:30 p.m. local time (3 p.m. GMT) or sunset, whichever comes first.

But critics of President William Ruto say the government is to blame for the violence that has rocked the protests so far.

One person died when police in Kenya opened fire on thousands of angry protesters during mass demonstrations against the proposed law on Thursday. At least 200 people were injured and more than 100 arrested in the clashes, according to Amnesty International and other human rights groups.

The protests began last Tuesday and were led by young Kenyans and were largely peaceful. But as crowds grew in the capital Nairobi on Thursday, riot police, some on horseback, used tear gas canisters and water cannon to stop protesters from entering government buildings in the city’s business district.

Although the protests were initially limited to Nairobi, they have spread across the country, including to Nakuru, Kisumu and Ruto’s hometown of Eldoret, where protests came to a halt on Thursday.

So why are Kenyans protesting, how has the government responded and what happens next?

SITASIMAMA!!#REJECTFINANCEBLADE2024 #RejectFinance2024 pic.twitter.com/49bZlzGY9g

— Gathogo B.Mwangi (@GathogoBMwangi) 21 June 2024

Which tax proposals are controversial?

The finance bill currently being debated in Parliament was introduced in early May and was intensely debated throughout the week as opposition MPs supported the protesters.

It includes a wide range of tax reforms and increases, including new levies on monetized digital content creation and a 5 percent tax increase on digital payments such as bank transfers and digital money payments. This is particularly harsh for a country that relies on mobile money.

However, among the plans that most angered Kenyans were proposals to impose a 16 percent value added tax on bread and a 25 percent excise tax on domestically produced crude and refined vegetable oils.

In addition, an additional income tax of 2.75 percent was levied on salaried employees who are insured under the country’s state health insurance scheme. An annual motor vehicle tax of 2.5 percent was also planned.

Protesters say all these taxes, especially on bread and vegetable oil, will ultimately increase overall costs. They are also angry that the bill gives Kenya’s revenue authorities the power to enforce tax collection by accessing bank and mobile money accounts.

Which taxes were rolled back?

Last Tuesday, after the protests began, parliament announced urgent changes. In a press conference, Finance Committee Chair Kuria Kimani announced that lawmakers would roll back taxes on bread, oil, motor vehicles and financial transactions, including mobile money payments.

A proposed “eco-tax” on plastic products such as diapers, sanitary pads and telephones would only apply to imported goods, not products made by local manufacturers, Kimani said. Levies on health and housing benefits for salaried workers were also reduced.

However, protesters were not appeased and demonstrations continued, despite over 200 people being arrested on June 18. Many said they wanted the entire bill to be dropped.

On Thursday, protesters attempted to occupy the parliament building, where MPs were gathering for the second reading of the bill. Young people rallied on social media using the hashtags #RejectFinanceBill2024 and #OccupyParliament. Lawyers and doctors also mobilized to free the detainees and treat the injured.

Security officials justified the violence in Nairobi by saying they respected the constitutional right to protest but had to protect government institutions and therefore acted when protesters, according to authorities, threatened security around the parliament building. In other cities, protests remained peaceful.

Why is this politically sensitive?

The new financial bill is particularly painful, protesters say, because it comes against a backdrop of rising food and living costs in Kenya and in the wake of previous tax increases in 2023.

Protesters say they have had to pay increasingly higher taxes since President Ruto’s government was sworn in in 2022, while public services have not noticeably improved.

Last year, a finance bill introduced a 1.5 percent housing tax on employees’ gross income and doubled the value-added tax on petroleum products from 8 percent to 16 percent, although smaller protest groups said at the time that this would only add to the burden on struggling Kenyans.

Ruto, who promised during the election campaign to make life easier for Kenya’s working class, justified the recent tax hike proposals by saying they were necessary to pay off the country’s 11.1 trillion Kenyan shilling ($82 billion) national debt.

Much of this is thanks to China. The last government of Uhuru Kenyatta, of which Ruto was vice president, went on a credit spree and signed huge infrastructure deals, including a Standard Gauge Railway (SGR) connecting Nairobi to the port city of Mombasa.

Ruto is also trying to use taxes to raise additional funds to meet his revenue target of 3.3 trillion Kenyan shillings ($26 million) in 2024.

“We are a democratic country. Anyone who wants to demonstrate has the right to do so. No problem. However, decisions must be made by institutions,” Ruto said last Wednesday.

“We will make decisions as the executive, present them to the legislature, the people of Kenya will speak about it through public participation, others will take them to court, and that is how democracy works and I am a great believer in democracy.”

However, over the weekend, Ruto signalled his willingness to speak directly with the protesters – although no meeting has yet been organised.

What’s next?

Despite the outrage and attempts to break through Parliament, lawmakers pushed for the bill to be passed.

On Thursday, Ruto-loyal MPs voted overwhelmingly in favor of the amendments: out of 359 MPs, 204 voted in favor and 115 voted against.

Ruto’s allies who voted yes say the bill will generate revenue to hire more teachers, allocate more money to local governments and improve general infrastructure. But opposition MPs insist the bill will only burden Kenyans.

The bill will go into third and final reading this week and is expected to become law after Ruto signs it into law and come into force on July 1.

Protesters have since vowed not to stop protesting until the bill is rejected. Protesters are expected to be back on the streets on Tuesday when Parliament reconvenes.

Young people, some of whom have never voted before, say they are watching MPs vote and pledging to mobilise massively, register to vote and vote out Ruto’s cabinet in the next election. Some are also calling for Ruto’s resignation.

Elections are not scheduled to take place until 2027.