Internet disruptions reported in Kenya as anti-tax protests escalate

Key Takeaways

Kenya has a history of internet shutdowns. In December 2023, Telegram was periodically blocked for over a week due to an alleged leak of secondary school exam papers on the platform. This social media shutdown lasted 192 hours and cost $27m in internet restrictions. Currently, nationwide anti-government protests have left at least 17 people dead amid a brutal police crackdown. These demonstrations were sparked by President Ruto’s plan to implement a series of unpopular taxes to generate an additional $2.3bn for the budget year starting July 1. Protesters are demanding that lawmakers scrap the entire plan, despite some contentious levies, such as a 16% tax on bread, being dropped. In light of these events, Kenya’s sovereign dollar bonds are sinking. The nation’s 2031 debt security fell on Wednesday to its lowest price since issuance in February, making Kenyan bonds among the worst performers in emerging and frontier markets since June 18, when the demonstrations began.