Kenyan President William Samoei Ruto has announced that the bill containing contentious tax hikes would “be withdrawn.”
This decision came after more than 20 people died and parliament was ransacked by protesters opposing the legislation.
However, Ruto cautioned that withdrawing the finance bill would create a significant funding shortfall for development programs aimed at assisting farmers, schoolteachers, and others, as Kenya grapples with reducing 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“I concede and therefore I will not sign the 2024 finance bill and it shall subsequently be withdrawn,” Ruto told a press briefing.
“The people have spoken.”
Ruto’s administration was surprised by the intense opposition to its tax hikes, leading to nationwide protests last week.
The largely peaceful rallies turned violent on Tuesday when lawmakers passed the legislation, and police fired live rounds into crowds that ransacked the partly burning parliament complex.
The state-funded Kenya National Commission on Human Rights recorded 22 deaths and 300 injuries and announced plans to investigate.
Frustration over the rising cost of living escalated last week as lawmakers started debating the tax hike bill.
Ruto’s cash-strapped government stated that the tax increases were necessary to service Kenya’s massive debt of approximately 10 trillion shillings ($78 billion), which is about 70% of the country’s GDP.
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