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Protesters storm Kenyan parliament as controversial finance bill is passed

By Wycliffe Nyamasege
On 25 June 2024 at 03:22

Angry protesters stormed the Kenyan parliament in Nairobi on Tuesday, June 25, in continued protests against the bill seeking to raise $2.7 billion in additional taxes for the government.

The protests, largely led by young people popularly known as Gen Z, turned ugly on Tuesday afternoon after lawmakers voted to pass the Finance Bill 2024.

The protesters overwhelmed a contingent of anti-riot police officers manning the parliament buildings, set police vehicles ablaze, and shattered the windows of some of the facilities.

Local media reports indicate that several people have been shot in the ongoing protests, with some fatalities being reported.

During the Third Reading of the Bill on Tuesday, 195 Members of Parliament voted in support of the Bill while 106 voted to reject the proposed law. There were three spoilt votes.

Similar protests rocked the country last week as the Kenyan Parliament debated the contentious Bill which has divided the House.

Despite the spirited demonstrations, parliament voted for the Finance Bill 2024 to enter the committee stage.

204 MPs voted in favour of the bill while 115 voted against it, paving the way for the bill to move to the committee stage and a third reading. Having sailed through the third reading on Tuesday, it will now be sent to President William Ruto for assent.

Protests rock Kenyan streets

Ahead of the House’s consideration of the bill on Tuesday afternoon, young people came out in droves to demand its total rejection.

The protesters engaged in running battles with the police, who used teargas canisters and water cannons to disperse the growing crowds.

Rita Auma Obama, an activist and half-sister of former United States President Barack Obama, was among the protesters caught up in the melee. A video that has gone viral on social media shows Auma being forced to cut short her interview with CNN due to the overwhelming teargas deployed by the police.

Debt burden

The Finance Bill 2024 is the latest in a series of measures aimed at maintaining Kenya’s creditworthiness in international markets. Currently, the country’s debt burden stands at 68% of GDP, which exceeds the World Bank and International Monetary Fund’s recommended threshold of 55% of GDP.

The opposition coalition led by former Prime Minister Raila Odinga has in recent weeks faulted President Ruto’s proposed taxes, claiming he is under external pressure to overburn Kenyans struggling to make ends meet after a series of "punitive" taxes.

Pressure from Kenyans last week saw the Head of State allow several amendments. These included the withdrawal of proposed 16% VAT on bread, a 2.5% motor vehicle tax increase, and a hike in the tax on mobile money transfers from 15% to 20%.

Additionally, the proposal to introduce a Ksh150 per kilogram eco-tax on plastic packaging materials, batteries, and hygiene products such as diapers and sanitary pads was dropped.

The government said the proposed Eco Levy will only be imposed on imported finished products that contribute to e-waste and thus harm the environment when they are no longer in use.

Other taxes that remain untouched include proposals to increase import taxes from 2.5% to 3% of the item’s value, payable by the importer at the port, as well as a 16% tax on goods and services intended for the direct and exclusive use in the construction and equipping of specialized hospitals with a minimum bed capacity of 50. Kenyans have expressed concerns that the latter could lead to higher costs for accessing critical health services such as cancer treatment, diabetes care, kidney dialysis, and other chronic illnesses.

In response to the Gen Z protests, President Ruto said on Sunday that he is willing to engage with young people to address their concerns.

“I want to tell you that we are going to have a conversation so that we can identify your issues and work together as a nation,” President Ruto remarked at a local church service.

The protesters engaged in running battles with the police, who used teargas canisters and water cannons to disperse the growing crowds.

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