President Ruto proposes budget cuts after deadly protests in Kenya
TLDR
- President William Ruto slashes Kenya's 2024/2025 budget by KES 177 billion in response to widespread protests against tax hikes.
- Violent demonstrations, causing 39 deaths, lead to cancellation of controversial tax increases after escalating from peaceful protests against high taxes to storming of parliament.
- Reduction of 2024/2025 budget to KES 3.67 trillion viewed as governmental compromise amidst calls for President Ruto’s resignation.
President William Ruto has slashed Kenya’s 2024/2025 budget by KES 177 billion ($1.3 billion) in response to widespread protests against proposed tax hikes. The decision follows violent demonstrations that led to the deaths of 39 people and the eventual cancellation of the contentious tax increases.
The unrest began as peaceful protests against high taxes but escalated when police fired at crowds storming parliament. Many Kenyans argue that while the government emphasizes the need for citizen sacrifices, the cost of governance remains excessively high.
As a result, the 2024/2025 budget has been reduced to KES 3.67 trillion ($28.7 billion), a move seen as part of a series of compromises by the government amid growing calls for President Ruto’s resignation.
Key Takeaways
Mostly led by young Kenyans, the protests reflected widespread anger over an annual finance bill, which President Ruto eventually had to scrap, warning of a significant funding gap. Kenya's public debt stands at around 10 trillion shillings ($78 billion), around 70 percent of the country's GDP. Ruto acknowledged that borrowing would increase the fiscal deficit from 3.3% to 4.6%, but justified it as necessary to fund essential services. These services include hiring secondary school teachers and medical interns and continuing the milk stabilization and fertilizer programs that protect farmers. Several belt-tightening measures were also announced, including the absorption of 47 state-run organizations and companies into other departments. The offices of the first lady and the deputy president's spouse will also cease to exist, and the number of government advisors will be reduced by half.
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