Kenyan President William Ruto announced Wednesday that a law containing contentious tax hikes would be “withdrawn,” abruptly altering direction after more than 20 people were killed and parliament was destroyed by demonstrators against the proposal.
However, he warned that the withdrawal of the financial bill will result in a major gap in funds for development initiatives aimed at assisting farmers and schoolteachers, among others, as the East African country attempts to reduce its foreign debt burden.
“I concede and therefore I will not sign the 2024 finance bill and it shall subsequently be withdrawn,” Ruto told a press briefing, adding: “The people have spoken.”
Ruto’s administration has been taken aback by the level of opposition to proposed tax increases, with protests breaking out across the country last week.
The generally peaceful marches turned violent on Tuesday, when MPs ratified the measure and police fired live bullets onto people who plundered the partially burned parliament complex.
The state-funded Kenya National Commission on Human Rights announced that 22 people had died and 300 were injured, and that an investigation would be launched.
Frustration with the growing cost of living escalated last week as lawmakers began debating the bill including the tax increases.
Ruto’s cash-strapped government claimed the increases were required to finance the country’s huge debt of over 10 trillion shillings ($78 billion), which is equivalent to roughly 70% of Kenya’s GDP.