<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="525" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/O4DDOWTHABMRZCQ5YHOW2COCV4-820x525.jpg" alt="" class="wp-image-503489" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/O4DDOWTHABMRZCQ5YHOW2COCV4-820x525.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/O4DDOWTHABMRZCQ5YHOW2COCV4-300x192.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/O4DDOWTHABMRZCQ5YHOW2COCV4-141x90.jpg 141w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/O4DDOWTHABMRZCQ5YHOW2COCV4-768x492.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/O4DDOWTHABMRZCQ5YHOW2COCV4-1536x984.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/O4DDOWTHABMRZCQ5YHOW2COCV4-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A protester carries a casket during a demonstration over police killings of people protesting against the imposition of tax hikes by the government, in Nairobi, Kenya, July 2, 2024. REUTERS/John Muchucha/File Photo</figcaption></figure>



NAIROBI, July 3 (Reuters) &#8211; Activists behind Kenya&#8217;s anti-government protests are rethinking their strategy after demonstrations on Tuesday were marred by violence and looting that they fear could undermine the movement and its efforts to push President William Ruto to resign.



The activists say the violence was the work of &#8220;goons&#8221; hired by politicians to either discredit legitimate demonstrators or advance their own agendas. Some called on social media for the next planned demonstration on Thursday not to go ahead.



&#8220;It seems the state has realised that the only way to counter this movement is by using goons to incite violence, break into people&#8217;s property, loot, and tarnish our cause,&#8221; Ojango Omondi, an activist in the capital Nairobi, told Reuters.



&#8220;It&#8217;s time to go back to the drawing board and strategise on how best to overcome this violence and keep our protests focused on their true objectives.&#8221;



Kenya&#8217;s government spokesperson did not respond to a request for comment. In a statement on Tuesday, Interior Minister Kithure Kindike blamed violence on &#8220;hordes of marauding criminal gangs&#8221; and said there was an attempt to &#8220;politicise crime&#8221;.



The initial protests last month against proposed tax hikes were overwhelmingly peaceful, although the police fired tear gas and water cannon at demonstrators.



The mobilisation of Kenyans from across ethnic lines around common economic demands marked a break with previous protest movements that have typically been organised by political figures with ethnic grievances often at the fore.



The protests became violent as some demonstrators briefly stormed parliament last week and the police opened fire, killing dozens.



The next day, Ruto withdrew the tax increases. But protesters vowed to carry on, issuing a range of demands, from anti-corruption measures to Ruto&#8217;s resignation.



Almost from the outset, protests on Tuesday were marked by violence. Stone-throwing young men clashed with police in Nairobi and other towns. Looters stormed businesses, leading shopowners to arm themselves with sticks and clubs.



Foi Wambui, a young actress who had come to protest in downtown Nairobi, said she was heading home because of the chaos.



&#8220;What has happened is that peaceful protesters are deterred from coming to town, and we are deterred from actually coming and practising our civic duties,&#8221; she told Reuters.



<h2 class="wp-block-heading" id="h-discrediting-the-movement">DISCREDITING THE MOVEMENT</h2>



In official statements, Ruto and the government have generally distinguished between peaceful protesters and those they brand as criminals that have hijacked the demonstrations.



But their allies have seized on the violence to try to discredit the movement, popularly known as Gen Z protests for their youthful following.



Dennis Itumbi, a political consultant close to Ruto, posted a video on X of a group of young men robbing another man in the streets. It was not clear where or when the video was taken.



&#8220;Congratulations Gen-Z for your Peaceful and democratic protests along the streets,&#8221; Itumbi wrote. &#8220;The police should not interfere with your moves.



Gerald Bitok, the communications director at the presidency, said young people were beginning to turn against the protests.



&#8220;The Gen Zs and the young people of this country have made it crystal clear that going forward, they will not be part of the demonstrations that are now synonymous with terror,&#8221; he said on X.



On a public forum on X on Tuesday evening that was attended by over 400,000 people, one supporter of the protest movement said it bore some responsibility for the chaos by continuing to call for demonstrations after Ruto withdrew the tax hikes.



&#8220;You are equally culpable if you are still beating the drums of war,&#8221; he said.



Other speakers said what they referred to as paid goons were to blame, but several agreed that demonstrators should take a step back and call off Thursday&#8217;s protest.



&#8220;We will have more casualties and we will not achieve what we want,&#8221; said one. &#8220;Let&#8217;s go back. Let&#8217;s strategise.&#8221;



(Reporting by Aaron Ross; Additional reporting by George Obulutsa and Mukelwa Hlatshwayo; Editing by Tomasz Janowski and Barbara Lewis)

FILE PHOTO: Anti-government protests against the imposition of tax hikes by the government in Nairobi

Kenyan activists rethink strategy after protests turn violent

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="530" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/RATMU646AFL3ZKYVS5LWKQ3QUM-820x530.jpg" alt="" class="wp-image-503421" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/RATMU646AFL3ZKYVS5LWKQ3QUM-820x530.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/RATMU646AFL3ZKYVS5LWKQ3QUM-300x194.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/RATMU646AFL3ZKYVS5LWKQ3QUM-139x90.jpg 139w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/RATMU646AFL3ZKYVS5LWKQ3QUM-768x496.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/RATMU646AFL3ZKYVS5LWKQ3QUM-1536x993.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/RATMU646AFL3ZKYVS5LWKQ3QUM-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A view shows the Nairobi cityscape on the Nairobi Expressway undertaken by the China Road and Bridge Corporation (CRBC) on a public-private partnership (PPP) basis, along Waiyaki Way within the Central Business district of Nairobi, Kenya May 7, 2023. REUTERS/Thomas Mukoya</figcaption></figure>



NAIROBI, July 3 (Reuters)&nbsp;&#8211;&nbsp;Kenya&#8217;s private sector activity fell in June, hit by the impact of widespread protests against a now-shelved finance law, a business survey showed on Wednesday.



The Stanbic Bank Kenya Purchasing Managers&#8217; Index (PMI) fell to 47.2 in June from 51.8 in May. Readings below 50.0 signal contraction.



&#8220;Tough economic conditions brought on by the cost-of-living crisis, as well as protests surrounding the country&#8217;s finance bill hurt sales volumes,&#8221; Stanbic Bank Kenya said in comments accompanying the survey.



&#8220;The downturn was partially softened by a rise in new orders across manufacturing, which was the only monitored sector to register growth in June.&#8221;



Last week President William Ruto withdrew a contested finance law that would have raised taxes after clashes between protesters and police killed at least 24 people.



However, Kenyan activists have urged people to take to the streets again, calling on the government to take tougher action to curb wasteful spending and corruption.



&#8220;In June, momentum in private sector activity declined, reflecting several concerns, top of the list being the proposed increase in taxes via the Finance Bill 2024, and the widespread protests in response,&#8221; Christopher Legilisho, an economist at Stanbic Bank, said.



(Reporting by George Obulutsa; Editing by Christina Fincher)

A view shows the Nairobi cityscape on the Nairobi Expressway undertaken by the China Road and Bridge Corporation along Waiyaki Way within Westlands district of Nairobi

Kenya’s private sector activity contracts in June, PMI shows

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/09/GettyImages-1240090144-820x547.jpg" alt="" class="wp-image-419915" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/09/GettyImages-1240090144-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/GettyImages-1240090144-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/GettyImages-1240090144-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/GettyImages-1240090144-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/GettyImages-1240090144-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/GettyImages-1240090144-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">The World Bank Group headquarters in Washington, D.C., U.S., on Tuesday, April 19, 2022. The International Monetary Fund (IMF) slashed its world growth forecast by the most since the early months of the Covid-19 pandemic, and projected even faster inflation, after Russia invaded Ukraine and China renewed virus lockdowns. Photographer: Al Drago/Bloomberg via Getty Images</figcaption></figure>



LUSAKA, July 2 (Reuters)&nbsp;&#8211;&nbsp;The World Bank has approved a $208 million grant for Zambia to help address the social and economic impact of drought that has hit the southern African nation, its finance ministry said on Tuesday.



Southern Africa is enduring its worst drought in years, owing to a combination of naturally occurring El Nino &#8211; when an abnormal warming of waters in the eastern pacific radiates heat into the air leading to hotter weather across the world &#8211; and higher average temperatures produced by greenhouse gas emissions.



Zambia, Malawi and Zimbabwe have all declared a state of disaster because of the drought, which has hit food production and livelihoods of millions of people.



The World Bank grant is intended to help Zambia effectively respond to the impact of drought through the provision of additional temporary cash payments to affected households.



&#8220;Specifically, it will support at least over 1.6 million households across 84 drought-impacted districts with emergency cash assistance over a 12-month period,&#8221; Zambia&#8217;s finance ministry said in a statement.



The World Bank financing would also strengthen existing social protection programmes, the ministry said.



The International Monetary Fund&#8217;s board last month approved a request from the Zambian government to increase its financial support to Zambia to $1.7 billion from $1.3 billion to help the nation respond to the drought.



(Reporting by Chris Mfula; Editing by Susan Fenton)

IMF And World Bank Headquarters During Virtual Spring Meetings

World Bank approves $208 million for Zambia’s drought response

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="544" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/C57JR5R4DBJ2ZIC65E7RHL4ONE-820x544.jpg" alt="" class="wp-image-503124" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/C57JR5R4DBJ2ZIC65E7RHL4ONE-820x544.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/C57JR5R4DBJ2ZIC65E7RHL4ONE-300x199.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/C57JR5R4DBJ2ZIC65E7RHL4ONE-136x90.jpg 136w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/C57JR5R4DBJ2ZIC65E7RHL4ONE-768x509.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/C57JR5R4DBJ2ZIC65E7RHL4ONE-1536x1018.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/C57JR5R4DBJ2ZIC65E7RHL4ONE-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">People attend a demonstration over police killings of people protesting against the imposition of tax hikes by the government in Nairobi, Kenya, July 2, 2024. REUTERS/Monicah Mwangi</figcaption></figure>



NAIROBI/MOMBASA, July 2 (Reuters)&nbsp;&#8211;&nbsp;Riot police fired tear gas grenades and charged at stone-throwing protesters in downtown Nairobi&nbsp;and across Kenya on Tuesday in the most widespread unrest since at least two dozen protesters died in clashes a week ago.



The nationwide demonstrations signalled that President William Ruto had failed to appease a spontaneous youth protest movement, despite having abandoned plans for tax rises that triggered the unrest last week.



Tuesday&#8217;s demonstrations began in ebullient mood but turned more violent as the day wore on. In Nairobi&#8217;s downtown business district, police wearing helmets and carrying shields and wooden clubs charged at the protesters, and tear gas bombs exploded in the crowds.



A kiosk was set ablaze in the centre of a street. Medics tended to a youth who lay on the pavement with a bloody hand. Police bundled other youths into the bed of a pickup truck.



Outside the capital, hundreds of protesters marched through&nbsp;Mombasa, Kenya&#8217;s second largest city,&nbsp;on the Indian Ocean coast. They carried palm fronds, blew on plastic horns and beat on drums, chanting &#8220;Ruto must go!&#8221;



Later, Kenya&#8217;s NTV television reported two people shot in Mombasa, showing pictures of cars ablaze.



Ruto, facing the worst crisis of his nearly two-year-old presidency, has been caught between the demands of lenders such as the International Monetary Fund to cut deficits, and a hard-pressed population reeling from the soaring cost of living.



Members of the protest movement, which has no official leaders and largely organises via social media, have rejected Ruto&#8217;s appeals for dialogue &#8211; even after he abandoned his proposed tax rises.



&#8220;People are dying in the streets and the only thing he can talk about is money. We are not money. We are people. We are human beings,&#8221; protester Milan Waudo told Reuters in Mombasa. &#8220;He needs to care about his people, because if he can&#8217;t care about his people then we don&#8217;t need him in that chair.&#8221;



Other protests took place in Kisumu, Nakuru, Kajiado, Migori, Mlolongo and Rongo, according to images broadcast on Kenyan television. In the southwestern town of Migori, protesters set tyres on fire.



The Kenya National Commission on Human Rights (KNHCR) says 39 Kenyans&nbsp;have been killed in demonstrations and clashes with police since June 18.&nbsp;Most of the deaths took place on June 25 when&nbsp;officers opened fire near parliament where some protesters&nbsp;tried to storm the building to prevent lawmakers from voting on the tax hikes.



<h2 class="wp-block-heading" id="h-beautiful-day">&#8216;BEAUTIFUL DAY&#8217;</h2>



&#8220;We are determined to push for the president&#8217;s resignation,&#8221; said Ojango Omondi, an activist in Nairobi. &#8220;We hope for a peaceful protest and minimal casualties, if any.&#8221;



The authorities appealed for calm.



&#8220;It&#8217;s a beautiful day to choose patriotism. A beautiful day to choose peace, order and the sanctity of our nationhood,&#8221; State House communications director Gerald Bitok wrote on X on Tuesday, adding in Swahili: &#8220;Violence is not patriotism.&#8221;



Some activists who had called for the demonstrations deplored the unrest. &#8220;Goons have infiltrated,&#8221; Hanifa Adan, an activist and reporter for the Eastleigh Voice newspaper, wrote on X, followed by broken heart emojis.



Opposition leader Raila Odinga, runner-up in the last four presidential elections, backed the protesters though they have called on politicians to keep out of it.



&#8220;The youth have given our country its last best chance,&#8221; Odinga&#8217;s ODM party said in a statement. &#8220;We either seize it and swim with it by implementing all their demands, or we ignore it and sink the country altogether.&#8221;



The protests, which started as an online outpouring of anger over nearly $2.7 billion of tax&nbsp;increases in a proposed finance bill, have grown into a nationwide movement against corruption and&nbsp;misgovernance.



Ruto has directed the treasury to come up with ways to cut spending to fill a budget gap left by the withdrawal of the tax plans, and also said more borrowing would be required.



Veteran anti-corruption activist John Githongo told Reuters that while Ruto had addressed the nation and media, &#8220;there isn&#8217;t an indication that he wants to take action&#8221; on protesters&#8217; demands, including firing corrupt officials.



&#8220;There hasn&#8217;t been any indication by the government that they are going to take the calls to deal with corruption seriously,&#8221; he said.



The protests&nbsp;had been&nbsp;mostly peaceful until&nbsp;June 25, when some&nbsp;demonstrators&nbsp;briefly stormed parliament and set part of it ablaze,&nbsp;prompting&nbsp;police&nbsp;to&nbsp;open fire.



Ruto has defended the actions of the police and blamed the violence on &#8220;criminals&#8221; who&nbsp;had&nbsp;hijacked the demonstrations.



(Reporting by Aaron Ross, Monicah Njeri, Jeff Kahinju, Olivia Kumwenda-Mtambo in Nairobi and Dicksy O&#8217;Biero in Mombasa; writing by Hereward Holland and Peter Graff; editing by Andrew Heavens, Bernadette Baum, Gareth Jones and Mark Heinrich)

Anti-government protests against the imposition of tax hikes by the government in Nairobi

Tear gas, stones and flames as Kenya protesters say ‘Ruto must go!’

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/2BQXSB7ZGJI3LF7IF23ZKLG3AU-820x547.jpg" alt="" class="wp-image-503012" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/2BQXSB7ZGJI3LF7IF23ZKLG3AU-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/2BQXSB7ZGJI3LF7IF23ZKLG3AU-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/2BQXSB7ZGJI3LF7IF23ZKLG3AU-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/2BQXSB7ZGJI3LF7IF23ZKLG3AU-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/2BQXSB7ZGJI3LF7IF23ZKLG3AU-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/2BQXSB7ZGJI3LF7IF23ZKLG3AU-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A protester walks amid smoke as supporters of Kenya&#8217;s opposition leader Raila Odinga of the Azimio La Umoja (Declaration of Unity) One Kenya Alliance, participate in an anti-government protest against the imposition of tax hikes by the government in Nairobi, Kenya July 21, 2023. REUTERS/Thomas Mukoya/File Photo</figcaption></figure>



NAIROBI, July 2 (Reuters) &#8211; Riot police used tear gas to disperse protesters in Kenya&#8217;s capital Nairobi on Tuesday and demonstrations took place in other towns, after young activists called for more protests following a week of clashes in which dozens died.



Reuters journalists saw clouds of tear gas on a main road through central Nairobi before midday, where riot police in helmets had been present since early morning.



Outside the capital, Kenyan television stations showed hundreds of protesters marching peacefully, carrying palm fronds in Mombasa on the Indian Ocean coast, and dozens in Kisumu on Lake Victoria. In the southwestern town of Migori, protesters had set tyres on fire.



Members of the protest movement, which has no official leaders and largely organises via social media, have rejected appeals from President William Ruto for dialogue, even after he abandoned proposed tax rises that triggered the demonstrations.



Dozens of Kenyans have been killed in demonstrations and clashes with police since June 18, most of them shot by officers last Tuesday, when some protesters tried to storm parliament to block lawmakers from voting on the tax increases.



Infuriated by the deaths &#8211; at least 39 according to the government-funded Kenya National Commission on Human Rights (KNHCR) &#8211; many are demanding that Ruto steps down.



<h2 class="wp-block-heading" id="h-demanding-ruto-s-resignation">DEMANDING RUTO&#8217;S RESIGNATION</h2>



&#8220;We are determined to push for the president&#8217;s resignation,&#8221; said Ojango Omondi, an activist in Nairobi. &#8220;We hope for a peaceful protest and minimal casualties, if any.&#8221;



The authorities appealed for calm.



&#8220;It&#8217;s a beautiful day to choose patriotism. A beautiful day to choose peace, order and the sanctity of our nationhood,&#8221; State House communications director Gerald Bitok wrote on X on Tuesday, adding in Swahili: &#8220;Violence is not patriotism.&#8221;



Downtown Nairobi was busier on Tuesday morning than it had been in recent days, with shops that had been shut during the protests reopening. Residents believed the worst of the unrest had passed for now.



&#8220;I think it&#8217;s not going to be maandamano (protest) because maybe people are afraid, because some people have been shot,&#8221; said Kennedy Otwal, who was walking through downtown.



The protests, which started as an online outpouring of anger over nearly $2.7 billion of tax hikes in a proposed finance bill, have grown into a nationwide movement against corruption and misgovernance.



<h2 class="wp-block-heading" id="h-caught-between-demands">CAUGHT BETWEEN DEMANDS</h2>



Ruto, facing the most serious crisis of his nearly two-year-old presidency, has been caught between the demands of lenders such as the International Monetary Fund to cut deficits, and a hard-pressed population reeling from the soaring cost of living.



He has directed the treasury to come up with ways to cut spending to fill a budget gap caused by the bill&#8217;s withdrawal, and also said more borrowing will be required.



Veteran anti-corruption activist John Githongo told Reuters that while Ruto had addressed the nation and media, &#8220;there isn&#8217;t an indication that he wants to take action&#8221; on protesters&#8217; demands, including firing corrupt officials.



&#8220;There hasn&#8217;t been any indication by the government that they are going to take the calls to deal with corruption seriously,&#8221; he said.



The protests were mostly peaceful until last Tuesday, when some protesters briefly stormed parliament and set part of it ablaze, and police opened fire.



Ruto has defended the actions of the police, and blamed the violence on &#8220;criminals&#8221; who hijacked the demonstrations.



(Reporting by Aaron Ross, Monicah Njeri and Jeff Kahinju; Additional reporting by Olivia Kumwenda-Mtambo; Writing by Hereward Holland and Peter Graff; Editing by Andrew Heavens and Bernadette Baum)

Kenya police use tear gas to disperse crowds after call for more demonstrations

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/KHXBMAI2KVMZVFFWJRXE5BTEH4-820x547.jpg" alt="" class="wp-image-502746" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/KHXBMAI2KVMZVFFWJRXE5BTEH4-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/KHXBMAI2KVMZVFFWJRXE5BTEH4-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/KHXBMAI2KVMZVFFWJRXE5BTEH4-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/KHXBMAI2KVMZVFFWJRXE5BTEH4-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/KHXBMAI2KVMZVFFWJRXE5BTEH4-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/KHXBMAI2KVMZVFFWJRXE5BTEH4-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">People react to tear gas during a demonstration over police killings of people protesting against Kenya&#8217;s proposed finance bill 2024/2025, in Nairobi, Kenya, June 27, 2024. REUTERS/Monicah Mwangi</figcaption></figure>



NAIROBI, July 1 (Reuters) &#8211; Kenyan activists called for protesters to take to the streets again on Tuesday, with many rejecting appeals from President William Ruto for dialogue following his decision to withdraw proposed tax hikes.



At least 24 people were killed in clashes between protesters and police last week, when parliament was briefly stormed and set ablaze.



The protests, which have been led by young people and organised largely on social media, were initially sparked by a finance bill intended to raise 346 billion Kenyan shillings ($2.69 billion) in taxes.



But the demands of many protesters have escalated over the past two weeks to include calls to root out corruption and for Ruto to step down, presenting the most serious crisis of his two-year-old presidency.



An interview Ruto gave on Sunday evening to Kenyan television networks, in which he mostly defended the actions of the police and his government, seemed to have only hardened the positions of protesters.



On Monday, activists were sharing pamphlets on social media that urged people to occupy the capital Nairobi&#8217;s Central Business District. Many posted under the hashtag #OccupyCBDTuesday.



The protest movement has no official leadership, and it was not clear to what extent people would respond to these calls after tens of thousands came out last week in some of the country&#8217;s largest protests in recent memory.



In audio forums on social media, activists have been discussing how to maintain momentum now that the immediate objective of killing the finance bill has been attained.



<h2 class="wp-block-heading" id="h-spending-cuts">SPENDING CUTS</h2>



In his interview on Sunday, Ruto reiterated his previous calls for dialogue with young people. He said he was prepared to do this in a forum of their choosing, including the X Spaces where they often gather to discuss issues and strategise.



Many protesters reject the calls for dialogue, seeing them as an effort to co-opt the movement.



&#8220;You can’t dialogue with someone who is killing you on the other hand,&#8221; one activist said during an X Space over the weekend.



Ruto defended the conduct of the police in his interview, saying they had done the best they could under the circumstances and blaming &#8220;criminals&#8221; who he said had hijacked peaceful protests.



Ruto also suggested in the interview that the budget gap caused by the withdrawal of proposed tax hikes would be funded by borrowing, seemingly contradicting earlier statement that money would be saved through austerity measures.



Asked about&nbsp;this on Monday, Finance Minister Njuguna Ndung&#8217;u noted that there are legal limits on borrowing and the carrying capacity of debt.



&#8220;So it means that we must have expenditure cuts. This will be known once Parliament approves Supplementary one (budget),&#8221; he told Reuters in a text message.



Kenya&#8217;s national debt of more than 70% of gross domestic product already surpasses the statutory limit of 55% of GDP.



After withdrawing the bill, Ruto asked lawmakers to pass a supplementary budget, but parliament is currently in recess.



($1 = 128.5000 Kenyan shillings)



(Reporting by Aaron Ross; Editing by George Obulutsa and Toby Chopra)

People protest against Kenya’s proposed finance bill 2024/2025, in Nairobi

Kenyan activists call for more protests as govt pledges austerity

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/KN4GN4LXKNL4ROPUFKEJ2724LM-820x547.jpg" alt="" class="wp-image-502652" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/KN4GN4LXKNL4ROPUFKEJ2724LM-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/KN4GN4LXKNL4ROPUFKEJ2724LM-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/KN4GN4LXKNL4ROPUFKEJ2724LM-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/KN4GN4LXKNL4ROPUFKEJ2724LM-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/KN4GN4LXKNL4ROPUFKEJ2724LM-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/KN4GN4LXKNL4ROPUFKEJ2724LM-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: People attend a demonstration against Kenya&#8217;s proposed finance bill 2024/2025 in Nairobi, Kenya, June 25, 2024. REUTERS/Monicah Mwangi/File Photo</figcaption></figure>



NAIROBI, June 28 (Reuters)&nbsp;&#8211;&nbsp;In the two years since he was elected, Kenya&#8217;s President William Ruto has wowed global climate activists under the Eiffel Tower, brushed shoulders with global tech titans in Silicon Valley and was toasted as a global peacekeeper at the White House.



As he notched up dozens of foreign trips, however, citizens back home endured gruelling economic hardship.



Already hammered by a cost-of-living crisis and watching those in government enjoy the largesse derived from their positions, Kenyans forced Ruto to ditch plans to introduce eye-watering tax hikes after days of protests.



The U-turn has exposed the gulf between the image of Ruto as the jet-setting global voice not just of Kenya but the wider continent, and the grinding realities his nation faces &#8211; weighed down by debt, corruption and security threats.



It has left him severely weakened domestically with his administration divided in its response and his opponents rejuvenated, seeking to harness the wave of discontent ahead of elections in 2027, analysts and politicians said.



&#8220;Enslaved and supported by foreign interests, and never pro-people in its outlook and interests, (Ruto&#8217;s administration) was bound to face the consequences of its priorities,&#8221; Willy Mutunga, Kenya&#8217;s former chief justice, told Reuters.



&#8220;As long as the material interests of the youth are not addressed, the chasm grows bigger and bigger,&#8221; he said.



A spokesperson for Ruto did not respond to requests for comment.



Kenya &#8211; already one of Africa&#8217;s biggest economies and strongest democracies – has in recent years expanded its global role.



On the eve of the climax of the protests, Ruto flagged off 400 policemen to lead a stabilisation force in Haiti.



The U.S. has designated Kenya as a major non-NATO ally, the first in sub-Saharan Africa, which gives it access to training and equipment but does not oblige it to join NATO operations.



Earlier this month, Ruto spoke at the G7 summit about the need to reform the global financial system to help the poor and has emerged as a powerful advocate for Africa in calls for action on climate change.



However, with protests erupting countrywide, including in Ruto&#8217;s hometown, Eldoret, and louder calls for his departure, some analysts say his administration is fighting for survival.



Should Ruto dedicate more time and energy to addressing domestic concerns, Western powers risk losing the focus of one of their strongest allies in the battle for influence in Africa, where they seek to counter the growing power of Russia and China, diplomats and analysts said.



Ruto has offered dialogue to allay the fears of protesters but it is not clear if that will be accepted or who talks would be with.



He must also come up with a new plan to tackle Kenya&#8217;s economic challenges, likely a hard sell due to the deficit cuts he will need to make to meet the conditions of international lenders for future funding.



&#8220;Even if nationwide demonstrations dissipate, this civil disobedience is a generation-defining moment,&#8221; said Declan Galvin, managing director of Nairobi-based Exigent Risk Advisory, a consultancy.



&#8220;The next election is still several years away but Ruto clearly needs to shift his political position to address public needs for his own political survival.&#8221;



<h2 class="wp-block-heading" id="h-brazen-arrogance">&#8216;BRAZEN ARROGANCE&#8217;</h2>



Ruto&#8217;s has earned a reputation for a fierce work ethic but has struggled to shake an indictment by the International Criminal Court for his role in post-election violence in 2007-8 even after the court dropped the case.



Gabrielle Lynch, a Kenya expert at the University of Warwick in the UK, said that Ruto was &#8220;an incredible performer&#8221;, able to roll out facts and figures for donors and then adapt his body language and tone for a local rally later the same day.



&#8220;It is as if presenting himself as a world leader would help legitimise him at home and remove tag of parochial instigator of violence,&#8221; Lynch said.



Underscoring the scale of his globe-trotting, Ruto went on a total of 62 trips to 38 countries in his first 20 months in power, according to a tally by Kenya&#8217;s Daily Nation newspaper.



But when home, Ruto has appeared tone deaf to complaints over the direction the country was taking, according to two sources in regular contact with his office.



Having campaigned as a champion of low-income &#8220;hustlers&#8221;, Ruto&#8217;s opponents have since given him the nickname &#8220;Zakayo&#8221;, the Swahili name for a greedy tax collector in the Bible.



As protests mushroomed, videos of politicians flaunting their wealth circulated widely. Homes and businesses of parliamentarians who supported the tax hikes have been targeted.



Mutula Kilonzo Jr, a member of the opposition and governor of Makueni County, said the &#8220;brazen arrogance&#8221; of government officials fuelled discontent.



Anger has also been directed at the World Bank and the International Monetary Fund (IMF), seen as the drivers of Ruto&#8217;s fiscal policies. Since his climb-down on tax rises, Ruto must now find another path to make his nation&#8217;s debt pile of some $80 billion, around 70% of GDP, more manageable.



<h2 class="wp-block-heading" id="h-iron-fist-velvet-glove">IRON FIST, VELVET GLOVE</h2>



Kenya&#8217;s relationship with the United States has deepened under Ruto&#8217;s presidency but critics complain the mutual admiration has clouded Washington&#8217;s view on Kenya&#8217;s challenges.



U.S. support has been crucial in the fight against Islamist militants in Somalia and in May, Ruto enjoyed the first state visit to the U.S. by an African leader in over 15 years.



Ruto is seen as close to Meg Whitman, a former CEO at eBay and Hewlett Packard who is currently the U.S. ambassador to Kenya and the relationship has helped attract foreign investors, particularly U.S.-based tech firms, Nairobi-based diplomats say.



Boniface Mwangi, a prominent Kenyan social activist, said diplomatic statements of concern and U.S. Secretary of State Antony Blinken calling Ruto after the violence was &#8220;too little too late&#8221; and Washington must now take a tougher line.



A U.S. State Department spokesperson said the the embassy in Nairobi had consistently called for restraint and the respect for constitutional rights.



Mwangi said that he advised the U.S. embassy last week to leverage their influence over the president to urge him to engage the protesters as the movement was swelling.



&#8220;People had to die for them say something,&#8221; he said. &#8220;They have bought this all shine and charming personality. They don&#8217;t see the iron first behind the velvet glove.&#8221;



(Additional reporting by Daphne Psaledakis in Washington; Editing by Ros Russell)

FILE PHOTO: Demonstration against Kenya’s proposed finance bill 2024/2025 in Nairobi

Kenya protests expose jet-setting Ruto’s neglect of discontent at home

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="720" height="480" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/image.png" alt="" class="wp-image-501447" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/image.png 720w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/image-300x200.png 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/image-135x90.png 135w" sizes="auto, (max-width: 720px) 100vw, 720px" /></figure>



NAIROBI, June 28 (Reuters)&nbsp;&#8211;&nbsp;After their stunning success forcing the government to shelve $2.7 billion in tax hikes, young Kenyan activists are setting their sights higher, taking aim at deeply ingrained corruption and misgovernance.



Protesters say the finance bill President William Ruto abandoned on Wednesday was only a symptom of the problems plaguing a country where many young people face dwindling job prospects despite strong economic growth.



The movement has little precedent in its mass mobilisation of Kenyans across ethnic and regional divisions while rejecting any kind of political leadership. Protests in Kenya have historically been led by elites, often ending in power-sharing deals that yielded few tangible benefits for demonstrators.



Protesters now face the challenge of maintaining unity and momentum while pursuing broader, less immediate goals. They will also have to decide how to respond to Ruto&#8217;s offer of dialogue, which the president made on Wednesday without offering specifics.



Writer and activist Nanjala Nyabola said most of those involved in the recent protests were motivated by legitimate, strongly held grievances with the government.



&#8220;Until those grievances are addressed, it&#8217;s unlikely that they&#8217;re going to be willing to make concessions.&#8221;



How the diffuse and leaderless movement, which largely organised via social media, pursues its objectives moving forward remains an open question &#8211; and a source of internal debate.



Christine Odera, co-chair of the Kenya Coalition on Youth, Peace and Security, a civil society organisation, said there was a need for it to develop more formalised structures to advance the interests of young people and speak to the government.



&#8220;If we go organically then we might lose the whole conversation,&#8221; said Odera, who participated in the protests. &#8220;The president has said we need to have conversations. All of us cannot sit in a stadium and have a conversation.&#8221;



Others strongly disagree.



Ojango Omondi, a member of the Social Justice Centres Working Group, a community activist group in a poor district of Nairobi, said creating formal structures and designating national representatives could let the movement be corrupted by politicians.



&#8220;We don&#8217;t need to negotiate anything,&#8221; he said. &#8220;All we want is better living conditions. All we want is the leaders to stop using our resources &#8230; to sponsor their lavish lifestyle.&#8221;



<h2 class="wp-block-heading" id="h-question-of-unity">QUESTION OF UNITY</h2>



Omondi said there was plenty to keep the past week&#8217;s protesters engaged &#8211; from organising funerals for the nearly two dozen people&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL4N3IM15H&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">killed in clashes</a>&nbsp;with police on Tuesday to forcing recall elections against members of parliament.



Another key moment could be the government&#8217;s next bid to pass a finance bill, which is needed to fund expenditures in the upcoming fiscal year. Some protesters suspect the government will still try to jam through tax raises.



In a country where ethnic affinities have traditionally been a key driver of protest, the current youth-driven demonstrations have stood out for building unity around common grievances.



But cracks are already emerging.



Despite Ruto&#8217;s U-turn on the tax hikes, some protesters called for a planned march on the presidential residence to go ahead on Thursday in an attempt to force the president from power. Others rejected the idea as a dangerous gambit.



In the end, there were protests in&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL1N3IP064&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">several cities</a>, although they were smaller than on Tuesday.



In Ruto&#8217;s hometown and political stronghold of Eldoret, where thousands from different ethnic groups took to the streets on Tuesday, a human rights activist said some tensions were resurfacing since the president withdrew the bill.



Nicholas Omito, CEO of the Centre for Human Rights and Mediation, said demonstrators from Ruto&#8217;s Kalenjin ethnic group were arguing that protests should end now that the bill was dropped. Ethnic Kikuyu demonstrators were insisting they should continue until Ruto resigned.



Nyabola, the writer, conceded that the solidarity on display as Kenyans across all walks of life took to the streets in the bold showdown with their government could not undo the country&#8217;s long history of ethnic division.



&#8220;You&#8217;re never going to get rid of it completely,&#8221; she said. &#8220;But for now the class and wealth disparity between politicians and ordinary people has been the focus.&#8221;



(Reporting by Aaron Ross and Giulia ParaviciniAdditional reporting by Edwin OkothEditing by Joe Bavier)

image

After dramatic tax win, Kenyan protesters plot next moves

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="2048" height="1365" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/22SV2XFFTJKVFKWLT6QATFG6FU-scaled.jpg" alt="" class="wp-image-501050" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/22SV2XFFTJKVFKWLT6QATFG6FU-scaled.jpg 2048w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/22SV2XFFTJKVFKWLT6QATFG6FU-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/22SV2XFFTJKVFKWLT6QATFG6FU-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/22SV2XFFTJKVFKWLT6QATFG6FU-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/22SV2XFFTJKVFKWLT6QATFG6FU-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/22SV2XFFTJKVFKWLT6QATFG6FU-1536x1024.jpg 1536w" sizes="auto, (max-width: 2048px) 100vw, 2048px" /><figcaption class="wp-element-caption">Demonstrators react as police use tear gas to disperse protesters during a demonstration against Kenya&#8217;s proposed finance bill 2024/2025 in Nairobi, Kenya, June 25. REUTERS/Monicah Mwangi</figcaption></figure>



NAIROBI, June 27 (Reuters)&nbsp;&#8211;&nbsp;Kenyan police put up roadblocks on streets leading to the presidential palace on Thursday as some protesters vowed to &#8220;occupy State House&#8221;, despite the president&#8217;s climbdown on proposed tax hikes that sparked a week of demonstrations.



It was not clear how far protesters would be mollified by President William Ruto&#8217;s Wednesday decision to withdraw the finance bill, a day after clashes killed at least 23 people and parliament was briefly stormed and set alight.



Ruto is grappling with the most serious crisis of his two-year-old presidency as the youth-led protest movement has grown rapidly from online condemnations of the tax hikes into mass rallies demanding a political overhaul.



Lacking a formal leadership structure, however, protest supporters were divided on how far to carry the demonstrations.



&#8220;Let&#8217;s not be foolish as we fight for a better Kenya,&#8221; Boniface Mwangi, a prominent social justice activist, said in an Instagram post.



He voiced support for demonstrations on Thursday but opposed calls to invade State House, the president&#8217;s formal offices and residence, a move that he said could spur more violence and be used to justify a crackdown.



In the capital, Nairobi, police and soldiers patrolled the streets on Thursday and blocked access to the State House.



Police fired teargas to disperse several dozen people who had gathered in the centre of the city, although the crowds were nowhere near the size of those in Tuesday&#8217;s mass protests.



Reuters reporters saw army vehicles on the streets after the government deployed the military to help police.



Hundreds of protesters gathered in the port city of Mombasa and in the western city of Kisumu, local television footage showed, although those gatherings appeared peaceful.



While some protest supporters said they would not demonstrate on Thursday as the finance bill had been scrapped, others pledged to press on, saying only Ruto&#8217;s resignation would satisfy them.



&#8220;Right now is not about just the finance bill but about #RutoMustGo,&#8221; political activist and protester Davis Tafari told Reuters in a text message. &#8220;We have to make sure that Ruto and his MPs have resigned and fresh elections are held &#8230; We occupy State House for dignity and justice.&#8221;



Eli Owuor, 34, from Kibera, an informal settlement and a traditional hotbed of protests, also said he was prepared to join a push on to the State House.



&#8220;We may just need to visit Zakayo today in his house to prove that after parliament we can occupy State House,&#8221; he said, using a nickname protesters have given to Ruto that references a a biblical tax collector viewed as corrupt.



<h2 class="wp-block-heading" id="h-dialogue-austerity-are-next-steps">DIALOGUE, AUSTERITY ARE NEXT STEPS</h2>



In a speech on Wednesday, Ruto defended his push to raise taxes on items such as bread, cooking oil and diapers, saying it was justified by the need to cut Kenya&#8217;s high debt, which has made borrowing difficult and squeezed the currency.



But he acknowledged that the public had overwhelmingly rejected the finance bill. He said he would now start a dialogue with Kenyan youth and work on austerity measures, beginning with cuts to the budget of the presidency.



The International Monetary Fund, which has been urging the government to cut its deficit to obtain more funding, said it was closely monitoring the situation in Kenya.



&#8220;We are deeply concerned about the tragic events in Kenya in recent days,&#8221; the IMF said in a statement. &#8220;Our main goal in supporting Kenya is to help it overcome the difficult economic challenges it faces and improve its economic prospects and the well-being of its people.&#8221;



Ratings agency Moody&#8217;s said the shift in focus to cutting spending rather than boosting revenue will complicate the disbursement of future IMF funding and slow the pace of fiscal consolidation.



Analysts at JPMorgan said they had maintained their forecasts for a deficit of 4.5% of GDP in FY2024/2025, but acknowledged the government and IMF targets could be revised in light of recent developments.



They said the Central Bank of Kenya was unlikely to begin cutting rates until the final quarter of this year.



<h2 class="wp-block-heading" id="h-broad-appeal">BROAD APPEAL</h2>



Unlike previous demonstrations in Kenya called by political figures and often mobilised on the basis of ethnicity, the current protests have appealed broadly to those weary of rising living costs and endemic corruption.



From big cities to rural areas, most of Kenya&#8217;s 47 counties saw protests on Tuesday, even in Ruto&#8217;s hometown of Eldoret in his ethnic Kalenjin heartland.



At least 23 people were killed nationwide and 30 were being treated for bullet wounds, the Kenya Medical Association said. Medical officials in Nairobi said scores were injured.



(Reporting by Aaron Ross; Additional reporting by Giulia Paravicini, Monicah Mwangi and Olivia Kumwenda-Mtambo; Writing by Sharon Singleton; Editing by Clarence Fernandez and Philippa Fletcher)

Demonstration against Kenya’s proposed finance bill 2024/2025 in Nairobi

Kenya braces for fresh protests despite president’s tax climbdown

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="462" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/09/107004870-16427966702022-01-21t201709z_969185203_rc2w3s99wb9o_rtrmadp_0_argentina-imf-mexico-820x462.jpeg" alt="" class="wp-image-420118" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/09/107004870-16427966702022-01-21t201709z_969185203_rc2w3s99wb9o_rtrmadp_0_argentina-imf-mexico-820x462.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/107004870-16427966702022-01-21t201709z_969185203_rc2w3s99wb9o_rtrmadp_0_argentina-imf-mexico-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/107004870-16427966702022-01-21t201709z_969185203_rc2w3s99wb9o_rtrmadp_0_argentina-imf-mexico-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/107004870-16427966702022-01-21t201709z_969185203_rc2w3s99wb9o_rtrmadp_0_argentina-imf-mexico-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/107004870-16427966702022-01-21t201709z_969185203_rc2w3s99wb9o_rtrmadp_0_argentina-imf-mexico.jpeg 929w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">The new economic measures laid out by the U.K. government “will likely increase inequality”, according to a spokesperson from the International Monetary Fund.
Yuri Gripas | Reuters</figcaption></figure>



June 26 (Reuters)&nbsp;&#8211;&nbsp;The International Monetary Fund (IMF) said on Wednesday its executive board had completed a third review of Zambia&#8217;s Extended Credit Facility and approved an immediate disbursement of some $569.6 million.



The Fund&#8217;s board also approved a request to increase its financial support from $1.3 billion to $1.7 billion to help the southern African country respond to a severe drought, which has caused crop losses and affected power generation.



In a statement, IMF official Antoinette Sayeh said Zambian authorities had made progress on economic and structural reforms while addressing humanitarian challenges due to the drought.



&#8220;Going ahead, coordinated macroeconomic policies, continued efforts to restore fiscal and debt sustainability, and consistent reform implementation would be key to addressing the impact of the drought, preserving macroeconomic stability, and bolstering growth,&#8221; said Sayeh, the Fund&#8217;s deputy managing director.



Copper-rich Zambia dragged itself out of default this month after a debt-restructuring process that took more than three-and-a-half years and was a cautionary tale for the G20&#8217;s Common Framework mechanism designed to help low-income countries tackle unsustainable debt burdens.



The protracted debt rework has deterred investment, constrained economic growth and weighed on local financial markets.



Zambia&#8217;s finance minister asked parliament last week to approve additional spending of 41.9 billion kwacha ($1.65 billion) to help repay external debt and address the drought.



(Reporting by Tannur Anders and Harshita Meenaktshi; editing by Diane Craft and Rami Ayyub)

107004870-16427966702022-01-21t201709z_969185203_rc2w3s99wb9o_rtrmadp_0_argentina-imf-mexico

IMF approves $570 mln Zambia payout, increases loan to $1.7 bln

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="2048" height="1366" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/10/Kenya-President-reshuffles-cabinet-swaps-foreign-affairs-minister-scaled.jpg" alt="" class="wp-image-427955" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/10/Kenya-President-reshuffles-cabinet-swaps-foreign-affairs-minister-scaled.jpg 2048w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/Kenya-President-reshuffles-cabinet-swaps-foreign-affairs-minister-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/Kenya-President-reshuffles-cabinet-swaps-foreign-affairs-minister-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/Kenya-President-reshuffles-cabinet-swaps-foreign-affairs-minister-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/Kenya-President-reshuffles-cabinet-swaps-foreign-affairs-minister-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/10/Kenya-President-reshuffles-cabinet-swaps-foreign-affairs-minister-1536x1024.jpg 1536w" sizes="auto, (max-width: 2048px) 100vw, 2048px" /><figcaption class="wp-element-caption">FILE PHOTO: Kenya&#8217;s President William Ruto attends the Sustainable Development Goals (SDG) Summit at United Nations headquarters in New York City, New York, U.S., September 18, 2023. REUTERS/Caitlin Ochs/File Photo</figcaption></figure>



NAIROBI, June 26 (Reuters) &#8211; Kenya&#8217;s president on Wednesday withdrew planned tax rises, bowing to pressure from protesters who had stormed parliament, launched demonstrations across the country and threatened more action this week.



William Ruto said he would not sign a finance bill including the hikes a day after violent clashes between police and protesters at the assembly and nationwide left at least 23 people dead and scores wounded, according to medics.



&#8220;Listening keenly to the people of Kenya who have said loudly that they want nothing to do with this finance bill 2024, I concede. And therefore, I will not sign the 2024 finance bill, and it shall subsequently be withdrawn,&#8221; he said in a televised address.



Ruto said he would now start a dialogue with Kenyan youth, without going into details, and work on austerity measures &#8211; starting with cuts to the budget of the presidency &#8211; to make up the difference in the country&#8217;s finances.



The move will be seen as a major victory for a week-old protest movement that grew from online condemnations of tax increases into mass rallies demanding a political overhaul, in the most serious crisis of Ruto&#8217;s two-year-old presidency.



It may see off the immediate threat of more unrest, but leaves Ruto still caught between the competing demands of his hard-pressed citizens and of lenders such as the IMF &#8211; which is urging the government to cut deficits to obtain more financing.



On Tuesday, police opened fire on crowds who massed around parliament and later broke into the assembly&#8217;s compound, minutes after lawmakers had voted through the tax measures and sent them on to the president.



The Nation newspaper documented protests in at least 35 of Kenya&#8217;s 47 counties, from big cities to rural areas &#8211; even in Ruto&#8217;s hometown of Eldoret in his ethnic Kalenjin heartland.



At least 23 people were killed across the East African country and another 30 were being treated for bullet wounds, the Kenya Medical Association said on Wednesday. Medical officials in Nairobi said scores had been injured.



Protesters had earlier vowed to keep up their demonstrations in messages on social media using the hashtag #tupatanethursday, or &#8220;see you on Thursday&#8221; in a mix of Swahili and English.



Posts on social media had urged people to occupy State House, the president&#8217;s office and residence, on Thursday, and the local offices of the World Bank and the International Monetary Fund (IMF) on Friday, though it was not immediately clear if the calls came from individuals or a broader movement.



Heavily armed police patrolled the streets of the capital Nairobi, which were quieter than usual on Wednesday.



The protests began as an online outpouring of anger by young, tech-savvy Kenyans at proposed taxes on bread and diapers and evolved into a nationwide movement calling for the scrapping of the entire finance bill including the taxes.



Thousands took to the streets of Nairobi and several other cities during two days of protests last week as an online movement gathered momentum.



Protests in Kenya have usually been called by political leaders who can be amenable to negotiated settlements. But the young Kenyans in the current demonstrations have no official leader and they have been growing increasingly bold in their demands.



Lawmakers had already removed some tax hikes from the final version of the finance bill on Tuesday, including ones on bread and cooking oil, but inserted others in an effort to avoid a budget gap.

FILE PHOTO: Sustainable Development Goals (SDG) Summit at United Nations headquarters in New York

Kenya president backs down on tax rises after deadly protests

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/GettyImages-2158704243-820x547.jpg" alt="" class="wp-image-500684" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/GettyImages-2158704243-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/GettyImages-2158704243-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/GettyImages-2158704243-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/GettyImages-2158704243-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/GettyImages-2158704243-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/GettyImages-2158704243-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">NAIROBI, KENYA &#8211; JUNE 25: People clash with police during a protest against the tax hikes in planned &#8216;Finance Bill 2024&#8217; as they march to the parliament building in Nairobi, Kenya on June 25, 2024. (Photo by Gerald Anderson/Anadolu via Getty Images)</figcaption></figure>



NAIROBI, June 26 (Reuters) &#8211; As John Aron headed out to join the protests raging outside parliament, he felt something huge had already shifted in Kenyan politics, jolting it away from its decades of dominance by party strongmen and ethnic loyalties.



At least eight people died when police opened fire on crowds trying to storm the assembly to protest against tax hikes on Tuesday. President William Ruto blamed &#8220;criminals&#8221;. Aron, from Nairobi&#8217;s Kibera slum, said the demonstrators were part of a brand new movement.



&#8220;It is going to unite the youth and the old like never before,&#8221; the 29-year-old told Reuters.



Over just one week, what began as an online outpouring of anger by young, tech-savvy Kenyans at proposed taxes on bread and diapers has morphed into nationwide movement untethered from the politicians who have traditionally rallied the masses.



Ruto&#8217;s allies initially dismissed the protests as a fit of pique by wealthy, entitled kids.



&#8220;They arrive at the protests in Uber. When they leave the protests, they go to KFC to eat chicken,&#8221; parliament majority leader Kimani Ichung&#8217;wah told supporters last week.



But the protests have built up into a much wider groundswell of anger that has become the most serious crisis of Ruto&#8217;s two-year-old presidency, leaving him fumbling for a response.



&#8220;It&#8217;s the people against the government,&#8221; Ronnie Baron, a 30-year-old English literature teacher&nbsp;said in the heart of the crowd in downtown Nairobi on Tuesday.



The slogans on the streets and social media have shifted from tax to calls for a complete political overhaul. &#8220;Ruto must go!&#8221; crowds chanted.



&#8220;Our leaders are saying they are going to sit down with the youth. And talk to us,&#8221; protester Mitchell Mwamodo said. But &#8220;we don&#8217;t have a leader. I am not trying to have a conversation. We are not ready to back down.&#8221;



Ruto&nbsp;had said on Sunday that he wanted to&nbsp;engage with the protest movement and praised it for staging earlier more peaceful demonstrations.



But as the rallies spread, authorities switched from the carrot to the stick, clashing with demonstrators across the country on Tuesday.



&#8220;They are just trying to find out which hand to shake and which hand to cut off,&#8221; said 37-year-old Mary Ngigi as tear gas swirled around her on Tuesday. &#8220;But we don&#8217;t even have any leaders.&#8221;



<h2 class="wp-block-heading" id="h-i-wish-i-was-born-in-another-country">&#8216;I WISH I WAS BORN IN ANOTHER COUNTRY&#8217;</h2>



Many said they had had enough of a political system under which the big parties took turns in power and funnelled jobs and opportunities to supporters and people from their ethnic groups.



&#8220;Our parents failed us. They voted along tribal lines,&#8221; 26-year-old Derick Kolito told Reuters. He said he had a master&#8217;s degree in accounts but had not managed to find a job.



&#8220;I am the son of peasants. You must have a godfather to get a job &#8230; I wish I was born in another country.&#8221;



Division among the main ethnic groups have traditionally been a key driver of politics and protest, with members of one group coming out against what they see as favouritism towards another.



But at demonstrations and in online forums where they have gathered to discuss and strategise, protesters have stuck to common grievances including steep rises in living costs and widespread corruption.



The protests have cut across Kenya&#8217;s geographic, social and ethnic landscape.



The Nation newspaper documented protests in at least 35 of Kenya&#8217;s 47 counties, from big cities to rural areas &#8211; even in Ruto&#8217;s hometown of Eldoret in his ethnic Kalenjin heartland.



Westen Shilaho, a scholar who has studied Kenyan protest movements, said the political elite have traditionally used &#8220;the ethnic card&#8221; to enhance their own power.



&#8220;Now that that one is not working in this context, they will try to insert the class card,&#8221;&nbsp;he said.



Veteran anti-corruption activist John Githongo said there was room for de-escalation &#8220;but it requires tremendous political creativity and humility on the part of the government.&#8221;



Parliamentarians&nbsp;did make some&nbsp;concessions to the protesters by removing some of the taxes in the finance bill &#8211; though they then added some others to&nbsp;reduce the deficit.



Minutes after they passed the legislation on Tuesday, protesters entered the parliamentary compound, pitching Kenyan democracy into uncharted waters.



By Wednesday morning, a new hashtag was trending on social media &#8211; #tupatanethursday, a mix of Swahili and English meaning &#8220;see you on Thursday&#8221;.



(Editing by Joe Bavier; Editing by Andrew Heavens)

Protest against tax hike in Kenya

Kenya’s youth-led protest movement leaves Ruto fumbling for a response

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="546" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/08/SWHFBHEXMVNDDIV64D76DJQFGE-820x546.jpg" alt="" class="wp-image-426709" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/08/SWHFBHEXMVNDDIV64D76DJQFGE-820x546.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/08/SWHFBHEXMVNDDIV64D76DJQFGE-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/08/SWHFBHEXMVNDDIV64D76DJQFGE-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/08/SWHFBHEXMVNDDIV64D76DJQFGE-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/08/SWHFBHEXMVNDDIV64D76DJQFGE.jpg 1457w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Ugandan President Yoweri Museveni attends a session of the Russia-Africa summit in Saint Petersburg, Russia, July 28, 2023. Mikhail Tereshchenko/TASS Host Photo Agency via REUTERS/File Photo</figcaption></figure>



KAMPALA, June 21 (Reuters)&nbsp;&#8211;&nbsp;Uganda has signed a pact with a business association from the United Arab Emirates to build a new international airport, President Yoweri Museveni&#8217;s office said on Friday.



The deal for the East African nation&#8217;s third such airport expands the UAE&#8217;s economic footprint beyond its interests in the renewable energy and oil and gas industries.



The UAE&#8217;s Sharjah Chamber of Commerce and Industry will build the airport just outside the Kidepo National Park in the northeast near Uganda&#8217;s border with Kenya, Museveni&#8217;s office said in a statement, without giving the cost.



Construction will start in August, said Abdallah Sultan Al Owais, chairman of the Sharjah business body.



The airport will boost tourism by drawing visitors to the 1,442-sq-km (557-sq-mile) Kidepo park known for lions, giraffes, buffaloes and other big game.



The agreement was &#8220;a sign of the deepening relations with our Gulf partners and another opportunity to co-operate in investment and trade&#8221;, Museveni, who witnessed the signing, said in a post on X.



(Reporting by Elias Biryabarema; Editing by George Obulutsa and Clarence Fernandez)

A session of the Russia-Africa summit in Saint Petersburg

Uganda signs deal with UAE to build third international airport

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="2048" height="1366" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/6A7M3AO7TJLVNGKEVN2F6TDGYE-scaled.jpg" alt="" class="wp-image-493882" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/6A7M3AO7TJLVNGKEVN2F6TDGYE-scaled.jpg 2048w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/6A7M3AO7TJLVNGKEVN2F6TDGYE-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/6A7M3AO7TJLVNGKEVN2F6TDGYE-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/6A7M3AO7TJLVNGKEVN2F6TDGYE-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/6A7M3AO7TJLVNGKEVN2F6TDGYE-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/6A7M3AO7TJLVNGKEVN2F6TDGYE-1536x1024.jpg 1536w" sizes="auto, (max-width: 2048px) 100vw, 2048px" /><figcaption class="wp-element-caption">International Monetary Fund (IMF) logo is seen outside the headquarters building in Washington, U.S., as IMF Managing Director Christine Lagarde meets with Argentine Treasury Minister Nicolas Dujovne September 4, 2018. REUTERS/Yuri Gripas</figcaption></figure>



WASHINGTON, June 20 (Reuters)&nbsp;&#8211;&nbsp;The IMF said on Thursday its executive board approved funding&nbsp;for Tanzania of $786.2 million to help tackle climate change while also completing a separate review allowing for the disbursement of $149.4 million for budget support.



Tanzanian authorities are committed to continue implementing reforms to preserve macro-financial stability, strengthen economic recovery, and promote sustainable and inclusive growth, the International Monetary Fund said in a statement.



In the last three years, President Samia Suluhu Hassan&#8217;s administration has undertaken various economic reforms with ambitions to return the country&#8217;s economic growth to the pre-pandemic real gross domestic product growth rate of 6% to 7%.



Tanzania&#8217;s economic reform program remained strong, the IMF said, adding that economic growth rebounded in 2023 after slowing down in 2022.



&#8220;The current account deficit is narrowing, reflecting fiscal consolidation, easing commodity prices, and tight external financing conditions,&#8221; the IMF said.



While economic recovery is expected to gain momentum going forward, the IMF noted that it faced headwinds from an &#8220;unfavorable global economic environment.&#8221;



Tanzania&#8217;s economy, which relies on tourism, mining, agriculture and manufacturing, has remained resilient in the face of back-to-back extreme weather events and climate change, driven by a surge in the services sector, according to the World Bank.



The economy is forecast to accelerate to 5.4% this calendar year, up from 5.1% in 2023, minister of state in the president&#8217;s Office for Planning and Investment Kitila Mkumbo said last week.



(Reporting by Kanishka Singh; Editing by Chris Reese and Sandra Maler)

IMF logo is seen outside the headquarters building in Washington

IMF approves over $900 mln to support Tanzania budget, climate change fight

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="2048" height="1310" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/DKRZ4RTENVLQ3D2NUMVFGV3U7U-scaled.jpg" alt="" class="wp-image-498574" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/DKRZ4RTENVLQ3D2NUMVFGV3U7U-scaled.jpg 2048w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/DKRZ4RTENVLQ3D2NUMVFGV3U7U-300x192.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/DKRZ4RTENVLQ3D2NUMVFGV3U7U-820x524.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/DKRZ4RTENVLQ3D2NUMVFGV3U7U-141x90.jpg 141w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/DKRZ4RTENVLQ3D2NUMVFGV3U7U-768x491.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/DKRZ4RTENVLQ3D2NUMVFGV3U7U-1536x982.jpg 1536w" sizes="auto, (max-width: 2048px) 100vw, 2048px" /><figcaption class="wp-element-caption">Riot police officers control civilians after a bus was torched by unknown people ahead of protests by supporters of Kenya&#8217;s opposition leader Raila Odinga of the Azimio La Umoja (Declaration of Unity) One Kenya Alliance, in a nationwide protest over cost of living and President William Ruto&#8217;s government in Nairobi, Kenya May 2, 2023. REUTERS/Thomas Mukoya</figcaption></figure>



NAIROBI, June 20 (Reuters)&nbsp;&#8211;&nbsp;Riot police fired tear gas and water cannons to disperse thousands of demonstrators in Nairobi on Thursday as coordinated marches took place across Kenya against government plans to raise $2.7 billion in additional taxes to reduce the budget deficit.



Spraying people with purple-coloured water from water cannons, police sought to clear protesters in Nairobi&#8217;s central business district and blocked their path to parliament.



It was not clear why police used force as the demonstration appeared peaceful.



The Kenya Red Cross&#8217; Nairobi branch said on X it had attended to eight injured people from the protests. It did not give more details on the nature of injuries.



Police spokesperson Resila Onyango and Nairobi police commander Adamson Bungei did not respond to requests for comment.



Protesters say the tax rises will hurt the economy and raise the cost of living for Kenyans who are already struggling to make ends meet.



A parliamentary panel urged the government on Tuesday to scrap some new taxes proposed in its finance bill, including new ones on car ownership, bread, cooking oil and financial transactions.



The panel also recommended that a fuel tax towards road maintenance be increased.



President William Ruto was elected almost two years ago on a platform to help Kenya&#8217;s working poor, but has faced repeated anti-tax protests. He has defended the tax increases, saying the government needs to reduce its reliance on borrowing.



Elsewhere on Thursday, demonstrators in places such as Nyeri, Nakuru, Eldoret,&nbsp;Isiolo, Mombasa&nbsp;and Kisumu called for lawmakers to drop the bill and waved placards with slogans like &#8220;We say no to economic dictatorship&#8221;, and chanted &#8220;Ruto must go&#8221;. Those protests took place peacefully.



On Thursday afternoon, police also dispersed protesters in Eldoret.



The International Monetary Fund has urged the government to increase revenues in its 2024/25 budget to reduce state borrowing.



Lawmakers were debating the bill on Thursday in its second reading before parliament. Ruto has a majority in parliament, although some lawmakers allied to his coalition have expressed reservations about the bill.



Kimani Ichung&#8217;wah, the parliament&#8217;s majority leader, said lawmakers will meet on Tuesday to vote on the proposed changes to the bill.



Ndindi Nyoro, chairperson of the parliament&#8217;s budget committee, said the Finance Ministry had told parliament that scrapping the handful of proposed tax hikes would lead to a revenue shortfall of 200 billion shillings in the 2024/25 budget meaning equivalent spending cuts would have to be made.



Hundreds of people demonstrated on Tuesday against the bill, in the biggest backlash against Ruto&#8217;s government since protests in July last year, when rights groups said at least nine people were killed.



(Additional reporting by Hereward Holland, George Obulutsa and Humphrey Malalo in Nairobi, Noor Ali in IsioloEditing by Christina Fincher, Frances Kerry and Franklin Paul)

Nationwide protest over cost of living and President William Ruto’s government in Nairobi

Police fire tear gas, water cannon at anti-tax protesters in Kenya capital

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="2048" height="1305" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/UOEGRXYAIVP2VKGDETTWJFDJDU-scaled.jpg" alt="" class="wp-image-497865" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/UOEGRXYAIVP2VKGDETTWJFDJDU-scaled.jpg 2048w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/UOEGRXYAIVP2VKGDETTWJFDJDU-300x191.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/UOEGRXYAIVP2VKGDETTWJFDJDU-820x523.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/UOEGRXYAIVP2VKGDETTWJFDJDU-141x90.jpg 141w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/UOEGRXYAIVP2VKGDETTWJFDJDU-768x490.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/UOEGRXYAIVP2VKGDETTWJFDJDU-1536x979.jpg 1536w" sizes="auto, (max-width: 2048px) 100vw, 2048px" /><figcaption class="wp-element-caption">Protestors participate in a demonstration against Kenya&#8217;s proposed finance bill 2024/2025 in Nairobi, Kenya, June 18, 2024. REUTERS/Monicah Mwangi</figcaption></figure>



NAIROBI, June 18 (Reuters)&nbsp;&#8211;&nbsp;A Kenyan parliamentary panel recommended on Tuesday that the government scrap some new taxes proposed as part of next year&#8217;s budget, as hundreds of protesters angered by the measures took to the streets in the capital Nairobi.



The tax hikes, including new levies on cars and bread, are the latest effort by President William Ruto&#8217;s administration to boost revenue and reduce borrowing, but they have triggered widespread opposition.



Last year, the government introduced a housing tax and increased contributions to the national health scheme in moves that also sparked protests.



Kimani Kuria, chair of the Kenyan parliament&#8217;s finance committee, said the committee recommended amending the government&#8217;s funding bill for the 2024/25 fiscal year to remove a new tax on car ownership, higher taxes on financial and mobile phone charges and the imposition of value-added tax on bread.



As he spoke, Reuters witnesses saw police fire teargas to disperse hundreds of protesters demonstrating near the parliament building.



&#8220;We can&#8217;t even afford diapers for the kids anymore &#8230; we need this government to do something,&#8221; protester Muthoni Wanjiku told Reuters.



Human rights groups and the country&#8217;s media council, which accredits journalists, accused police officers of using excessive force to stop the protests, including briefly detaining journalists covering them.



Amnesty Kenya said 201 people were arrested during Tuesday&#8217;s demonstrations, including journalists, observers from human rights groups and protesters.



&#8220;We demand the immediate and unconditional release of all arrested protesters and observers. We call on the (police) to uphold its duty to protect and respect the rights of Kenyan citizens to assemble peacefully,&#8221; it said on its X account.



Adamson Bungei, Nairobi County Police Commander, did not answer phone calls seeking comment.



President Ruto told lawmakers from his governing coalition on Tuesday that he was happy &#8220;we are having a conversation about taxes and about debt and about what we need to do about it&#8221;.



Opponents of the latest tax hikes say they could&nbsp;harm Kenya&#8217;s&nbsp;economy.



On Wednesday and Thursday lawmakers will hold a line-by-line debate and vote on the legislation underpinning the budget.



This year&#8217;s finance bill aims to raise an extra 346.7 billion shillings ($2.7 billion) in additional revenue, finance minister Njuguna Ndung&#8217;u said last week.



Some taxes in last year&#8217;s finance law, including the housing levy, are still being challenged in court.



($1 = 128.0000 Kenyan shillings)



(Additional reporting by Jefferson Kahinju; Writing by George Obulutsa and Duncan Miriri; Editing by Alexander Winning, Christina Fincher and Susan Fenton)

Anti-finance bill protesters clash with police in Nairobi

Kenyan parliament panel urges govt to scrap some new taxes as hundreds protest

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="518" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/12/XGW2VAJGGVKTZOIMO2U27VMREE-820x518.jpg" alt="" class="wp-image-435757" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/12/XGW2VAJGGVKTZOIMO2U27VMREE-820x518.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/XGW2VAJGGVKTZOIMO2U27VMREE-300x190.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/XGW2VAJGGVKTZOIMO2U27VMREE-142x90.jpg 142w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/XGW2VAJGGVKTZOIMO2U27VMREE-768x485.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/XGW2VAJGGVKTZOIMO2U27VMREE-1536x971.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/XGW2VAJGGVKTZOIMO2U27VMREE-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Kenya&#8217;s Finance Minister Njuguna Ndung&#8217;u presents the Government Budget for the 2023/24 fiscal year inside the Parliament building in Nairobi, Kenya June 15, 2023. REUTERS/Monicah Mwangi/File Photo</figcaption></figure>



NAIROBI, June 13 (Reuters)&nbsp;&#8211;&nbsp;Kenya&#8217;s 2024/25 budget aims to tackle the country&#8217;s debt while protecting its fragile economic recovery, with growth estimated at 5.5% in 2024 and 2025, Finance Minister Njuguna Ndung&#8217;u said on Thursday.



Presenting the budget in parliament, Ndung&#8217;u said the fiscal deficit was expected to be 3.3% of gross domestic product (GDP), compared with a revised deficit of 5.7% for 2023/24.



Economic growth is expected to be in line with the ministry&#8217;s expectation of 5.5% this year from 5.6% in 2023.



&#8220;Kenya&#8217;s economy is unwinding from layers of negative and persistent shocks,&#8221; Ndung&#8217;u said, citing the effects of pandemic, and climate change related events such as devastating floods in 2023 and 2024.



He said policy efforts have reduced the cost of living and created vibrancy in an economy that is showing signs of a strong recovery.



Kenya&#8217;s economy is largely driven by agriculture, manufacturing, transport and storage, financial and insurance services and real estate.



Ndung&#8217;u told journalists earlier on Thursday that the budget would put emphasis on policies needed to strengthen and to support the fragile growth and recovery.



&#8220;We want to make sure that we revive the economy so that it can generate jobs for the youth. We want to revive the economy so that we can pay our debt. We have been buffeted by that,&#8221; he said.



<h2 class="wp-block-heading" id="h-debt-management">DEBT MANAGEMENT</h2>



Kenya&#8217;s total public debt stands at an estimated 68% of GDP for fiscal 2023/24, and is expected to fall to 64.8% in 2024/25, according to the World Bank.



Ndung&#8217;u said total spending for the fiscal year 2024/35 is seen at 3.992 trillion Kenyan shillings ($31.19 billion). To finance the budget, Kenya aims to borrow 333.8 billion shillings from external sources, and 263.2 billion from the domestic market.



&#8220;The government will slow down uptake of new external commercial debt and undertake liability management operations through debt swaps and other innovative solutions,&#8221; he said.



The East African country sold a $1.5 billion international bond in February at a premium to fund the buyback of a large portion of a $2 billion bond maturing in June.



Before that, investors had feared Kenya might not be able to repay the bond due to its strained public finances.



Last week, parliament approved overall spending for the year at 4 trillion shillings, up from the 3.75 trillion shillings the minister presented last June for the 2023/24 year. That budget was later adjusted to 3.85 trillion shillings.



The 2024/25 budget will be accompanied by the Finance Bill 2024 that will come before parliament next week. The bill is a separate law outlining proposed tax increases on various goods and services, which critics say could cripple some sectors, including financial and internet services, transport, manufacturing and retail.



Ndung&#8217;u said measures in the bill are expected to bring in an extra 346.7 billion shillings in additional revenues.



The proposals have drawn strong resistance from the public, bankers and manufacturers, as well as from the Law Society of Kenya, which stated its views to a parliamentary committee reviewing the measures.



President William Ruto has said the measures are aimed at reducing Kenya&#8217;s reliance on borrowing to fund its budget.



Last week, the central bank governor said Kenya will use part of a $1.2 billion World Bank budget support loan to make a payment of roughly $500 million on a Eurobond maturing this month.



($1 = 128.0000 Kenyan shillings)



(Reporting by George Obulutsa; Editing by Bate Felix, Miral Fahmy, Hugh Lawson and Jane Merriman)

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Kenyan activists rethink strategy after protests turn violent

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Tear gas, stones and flames as Kenya protesters say ‘Ruto must go!’

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Police fire tear gas, water cannon at anti-tax protesters in Kenya capital

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