Kenyan uproar against IMF-backed Ruto tax bill

|
  • 0

Kenyan uproar against IMF-backed Ruto tax bill

Monday, 08 July 2024 | Nilantha Ilangamuwa

Kenyan uproar against IMF-backed Ruto tax bill

Amid calls for his resignation, Kenyan President Ruto faces mounting pressure to address the root causes of economic instability and social unrest

Kenya's President William Ruto has finally withdrawn the Finance Bill 2024 following widespread protests triggered by Bloody Tuesday, when police fatally shot numerous austerity protesters in Nairobi this week. According to media reports, the bill, influenced by the International Monetary Fund (IMF), proposed significant tax increases amidst soaring food and fuel prices, high unemployment, and perceived governmental corruption and extravagance. The World Bank and IMF are sending conflicting messages to Kenya regarding taxation. While the World Bank cautions that Kenya's unpredictable tax policies are deterring Foreign Direct Investment (FDI), the IMF has praised the government's proposed tax increases in the Finance Bill 2024, suggesting they will significantly expand the tax base.

Last year, the IMF and the World Bank convened their annual joint meeting in Marrakech, marking their return to African soil after nearly five decades. The last occasion these two Bretton Woods institutions convened on African soil was in 1973, during the IMF-World Bank meeting in Nairobi, Kenya. At that time, Kenya's President Jomo Kenyatta (1897-1978) implored the attendees to swiftly address the 'monetary sickness of inflation and instability that has plagued the world.' In recent years, the tragic and grim situation has worsened significantly, with an increase in conflicts reported across the continent. Long-time exploiters like France, along with their alliances, are now confronting significant and formidable challenges. Amid critiques from organisations like Oxfam, who denounced these neo-liberal financial institutions' persistent austerity measures and debt policies, the meeting accentuated the enduring economic challenges facing developing countries. Despite promises of social spending safeguards, exemplified in recent IMF agreements with countries like Pakistan and Sri Lanka, critics argue that these measures perpetuate cycles of dependency and inequality. Amidst global protests demanding alternatives to neoliberal orthodoxy, as Vijay Prashad asserted, the meeting in Morocco underscored a deepening disillusionment with the IMF and World Bank's capacity to address the fundamental economic disparities they perpetuate. It is crucial to remember that these financial institutions are neither charitable nor humanitarian; they operate with the primary goal of profit and the consolidation of their political agendas. Kenya serves as yet another glaring example.

During my conversation with Tom Jalio, a journalist working for The Star, a daily newspaper in Kenya, he said, "President Ruto inherited a highly indebted country, and his attempts to curb borrowing with internal solutions have been seen as overly aggressive. Using his parliamentary majority to push through contentious tax bills for two consecutive years, President Ruto now faces mounting public opposition. Despite heavy security measures, the public outcry against these policies erupted in what President Ruto labelled as treasonous acts-a response that fails to acknowledge the genuine patriotism underlying the protests. As Kenyan literature might suggest, when the detachment of President Ruto affects an entire nation, dismissing dissent as criminality falls short of addressing the root concerns."

However, protests initially aimed at the Finance Bill have evolved into a broader uprising challenging not just Ruto's administration but the entire 60-year-old post-independence establishment supported by US and NATO powers. Millions nationwide, spanning 37 counties and crossing tribal lines, participated in demonstrations led largely by youth demanding rejection of the bill and Ruto's resignation. The protests culminated tragically with reports of 53 deaths and hundreds injured, with 30 fatalities occurring in Githurai and 23 more across Nairobi and other regions, all due to police use of live ammunition as documented by the Police Reforms Working Group.

Recent events in Kenya have witnessed severe repression reminiscent of historical atrocities. Tuesday's violence, where security forces under President William Ruto's command fired on protesters, echoes the brutal 1969 Kisumu massacre ordered by President Jomo Kenyatta, highlighting a pattern of state violence against dissent. Ruto's swift shift from threatening violence against protesters to withdrawing the Finance Bill 2024 reflects intense public outcry and tragic losses during demonstrations, initially labelled as treasonous. Despite withdrawing the bill, economic pressures persist.

The proposed austerity measures, influenced by the IMF, aim to tackle fiscal challenges but face widespread opposition due to potential impacts on healthcare, education, and social services. Ruto's manoeuvres to navigate these challenges, including dialogue with youth and stakeholders, stress Kenya's complex political and economic terrain. Opposition led by figures like Raila Odinga, supported by unions, engages in political manoeuvring amid broader socioeconomic tensions, reflecting ongoing struggles over economic policies and governance.

According to Onyango K'Onyango, a journalist working for one of Kenya's top newspapers, The Nation, he told this writer, "Our Constitution allows for the right to picket and assemble. As one of the most progressive Constitutions in Africa and perhaps the world at large, freedom of expression and association is guaranteed. It was an ill-advised move for the police to use live bullets on peaceful protesters. Whatever happened is unfortunate, but I blame the police for using excessive force and the government for failing to listen to issues raised by our Gen-Z." A chest-thumping government and Parliament is dangerous to a progressive democracy like ours. Arrogance exhibited by pro-government lawmakers and those who surround the president is the cause of all this mayhem. This is the time to embrace a reconciliatory tone, and the President should firmly deal with corruption in his administration. He should order a lifestyle audit and lead by example. The controversial bill should be returned to Parliament accompanied by a memorandum. This is what Kenyans want to hear, not rushing to term their peaceful protest as treasonous and deploying the military."

In Nairobi, escalating tensions between the youth and the government, exacerbated by recent violent incidents, reflect deep-seated bitterness. In my conversation with a freelance journalist, Andrew Mutungwa highlights key grievances: outrage over fatal shootings during protests, President Ruto's divisive portrayal of protesters as criminals undermining their right to assemble peacefully, and a perceived arrogance from leadership intensifying feelings of neglect among youth. Mutungwa urges the president to address these issues promptly, calling for action against corruption, criticising wasteful governance practices, and highlighting economic hardships as drivers of widespread discontent and ongoing protests. He warns of potential political instability if grievances are not addressed and acknowledges external influences supporting youth activism, advocating for dialogue and reforms to resolve Kenya's underlying issues.

Meanwhile, Erick Gangu, a human rights activist, provides a nuanced perspective on the unfolding events in Kenya. He asserts that the current unrest is primarily an internal affair without external financial or other support, contrary to speculations about foreign influence.

Gangu criticises President Ruto's recent statement as emotionally charged and inappropriate for a figure expected to embody national unity, emphasising that declarations of treason fall under the jurisdiction of the judiciary, not the executive branch. He highlights concerns about pre-demonstration arrests, including doctors and journalists, and condemns these actions as unconstitutional. Despite early attempts in 1993 to establish a dedicated anti-corruption squad within the police, its impact was short-lived as the unit disbanded. The milestone formation of the Kenya Anti-Corruption Authority (KACA) in 1997 was cut short by a 2000 High Court ruling deeming its statutory framework unconstitutional, leading to dissolution. Kenya's ongoing struggle against corruption necessitates sustained institutional reforms and public vigilance for effective resolution.

(The writer is a journalist and author. Views are personal)

Sunday Edition

GANGA NEEDS CLEANSING

07 July 2024 | BKP SINHA and DR ARVIND K JHA | Agenda

ST. MORITZ SUMMER’S RICH ALPINE PALETTE

07 July 2024 | AKANKSHA DEAN | Agenda

Rejoice in the Monsoon Magic This Season

07 July 2024 | Sharmila Chand | Agenda

Who is a fool?

07 July 2024 | Sri Sri Ravi Shankar | Agenda

A Resounding Tribute to Pandit Bhajan Sopori

07 July 2024 | SAKSHI PRIYA | Agenda

A Celebration of Artistic Diversity and Creative Dialogue

07 July 2024 | SAKSHI PRIYA | Agenda