Kenya’s President William Ruto Withdraws Controversial Finance Bill 2024 Following Protests
Kenya’s President William Ruto announced on Wednesday the withdrawal of the controversial Finance Bill 2024, which had sparked widespread protests and demonstrations across the country. The decision came after a day of deadly clashes between protesters opposed to the bill and anti-riot police on Tuesday, which left at least 22 people dead.
The bill, which contained provisions for tax hikes, was seen as a burden on the already struggling Kenyan population grappling with high living costs. President Ruto, in a televised address, acknowledged the strong opposition to the bill and stated that he would not sign it into law. He emphasized the need to listen to the voice of the people and engage in a national dialogue to address the economic challenges facing the country.
“Listening keenly to the people of Kenya who have said loudly that they want nothing to do with this Finance Bill 2024, I concede. And therefore, I will not sign the 2024 finance bill, and it shall subsequently be withdrawn,” Ruto said in his address.
The withdrawal of the bill means that the country will now operate under the Finance Act, 2023, which is already in place. The government will continue to collect revenue based on this act, and the Appropriation Act, 2023 will be used to continue accessing money to run its expenditures.
President Ruto also highlighted his administration’s efforts to reduce the cost of essential commodities and strengthen the national economy. He noted the significant reduction in the cost of fertilizer from Sh7,500 to Sh2,500 and the strengthening of the Shilling against the Dollar.
However, the withdrawal of the Finance Bill 2024 will lead to a significant shortfall in funding for development programmes designed to help farmers and schoolteachers, among others, as the East African nation struggles to lower its foreign debt burden.
The protests over the Finance Bill 2024 were the biggest demonstrations to hit Kenya since President Ruto was elected in 2022. The intensity of the opposition to the tax hikes took the administration by surprise, with the largely peaceful rallies turning violent on Tuesday.
Frustration over the rising cost of living escalated last week as lawmakers began debating the bill containing the tax rises. Ruto’s cash-strapped government said the increases were needed to service the country’s massive debt of some 10 trillion shillings ($78 billion), equal to roughly 70 percent of Kenya’s GDP.
President Ruto said he would now enter into dialogue with the young people, who were at the forefront of the protests. He also warned that the withdrawal of the bill would mean a significant shortfall in funding for development programmes and that austerity measures would be needed to make up the difference in the country’s finances.
The withdrawal of the Finance Bill 2024 marks a significant concession by President Ruto to the demands of the protesters. It remains to be seen how the government will address the economic challenges facing the country in the wake of this decision.
