Hundreds of people flocked to downtown Nairobi, Kenya’s capital, on Tuesday to protest against a proposed finance bill that many fear would significantly raise their already high incomes through the addition of new taxes and other increases on various goods and services. Higher cost of living.
Protesters wearing black T-shirts and whistling and vuvuzelas gathered near parliament, adding to online anger promoted through hashtags and videos on TikTok. Lawmakers also received a flood of phone calls and text messages, forcing them to reject the bill.
Police used tear gas and water cannon against protesters and quickly began making arrests. A coalition of human rights groups said in a statement that more than 200 people, including journalists, were arrested. Police have not released a statement on the number of arrests.
Police chased demonstrators, sirens sounded in the streets and businesses in the central business district closed.
As protests rocked the city, the government announced it would scrap some of the new taxes, including the bread tax. Opposition lawmakers viewed the concession as a “PR exercise”.
“People’s dissatisfaction has been building up and now it’s exploding,” said Hanifa Adan, a community worker who was one of the protest organizers.
“We are calling and texting our legislators to tell them of your loyalty to our constituents and to say no to this bill,” she said. In a post on social media, Ms. Adam said police were responding to Tuesday’s protest. Arrest her before starting.
The bill, first introduced in Parliament last month, introduces new taxes and duties that would raise the price of goods such as bread, diapers and cars. It has raised import duties on goods, as well as data taxes on phone calls and the Internet, as well as remittance fees charged by banks and other financial services institutions. It also raises taxes on companies and operators of digital businesses such as ride-hailing and food delivery services.
On Tuesday, Ruto’s parliamentary coalition, which has a majority in the National Assembly, announced it would scrap some measures, including bread taxes and excise taxes on vegetable oils.
“We listened to you,” Kimani Ichung’wah, the parliamentary majority leader, told a news conference. “We’ve heard you.”
However, the reversal of some of the measures did little to appease protesters on the streets of Nairobi. They chanted, “Reduce the fiscal bill,” and “The people who unite will never be defeated.”
Opposition members of parliament said they would not support the bill. Debate on the proposal will begin on Wednesday.
“I urge all members of parliament to still vote against this draconian and oppressive finance bill,” said opposition lawmaker Babu Owino, who called the government’s reversal of some proposals a “PR campaign” and accused it of being “out of touch” with the daily lives of ordinary Kenyans.
National Treasury officials say the tax measures are critical to raising revenue and limiting borrowing in an economy with high debt.
But activists, economists and religious leaders say higher taxes could discourage investment, stifle economic growth and make Kenya a less competitive destination in East Africa. They also said the plan would hit key industries such as manufacturing, transportation and financial services.
“For a country like Kenya that faces fiscal challenges, conversations around addressing debt and balancing debt with economic growth are important,” said John Kinuthia, senior program officer at the nonprofit Kenya International Budget Partnership. ) express.
“But even as they look for new resources, governments need to be wary of the noise and clamor these new measures and their impacts bring, especially at the household level.”
Mr. Ruto, a wealthy businessman who grew up poor, was elected to improve the economy for the millions of Kenyans who make a living. His critics say that’s not happening.
His government has increased the cost of health insurance and pension contributions for salaried employees. It eliminated fuel subsidies, introduced a housing tax and raised electricity prices. Experts say the measures were compounded by a severe drought and subsequent devastating floods, leading to job losses and factory closures.
The soaring cost of living also sparked demonstrations last year in which police killed at least 57 people, according to human rights groups.
“It’s just pain over and over again,” said Catherine Mueni Mutuku, who owns a grocery store in the capital, Nairobi. Ms Mutuku said she had been struggling to pay rent on her shop and house, while also paying school fees for her children to attend high school.
“Politicians really put a lot of pressure on us,” said Ms. Mutuku, who participated in Tuesday’s protest. “It’s like they don’t feel our pain.”
Ruto’s government has been dogged by major corruption scandals as he has raised taxes and cut spending. His globetrotting and penchant for expensive shoes and watches have also caused outrage on social media. Many Kenyans call him “Zakayo,” a reference to the biblical tax collector Zacchaeus.
Yet through it all, Mr Ruto, 57, has not only redoubled his efforts but also pledged to increase taxes in the coming years. “I will not lead a bankrupt country,” he said last month. “We have to start living within our means.”
Kenyans have been sharing lawmakers’ contact details online over the past few days and asking voters to push them to veto the bill. Lawmakers said they have been inundated with messages and calls.
Protest organizer Ms Adan said the unity of people from all political and economic persuasions against the bill showed how serious the situation was across the country.
“Ruto and his policies turned everyone into an activist,” she said. “This is not just a protest by poor people. This is a protest by everyone.
