Kenya’s President Ruto Suggests Budget Cuts in Response to Violent Protests

The finance bill was withdrawn, and Kenyan President William Ruto declared a 177 billion budget cut to close the gap. This comes after 39 people lost their lives as a result of protests that forced the cancelation of controversial tax increases.

When nonviolent protests over steep tax increases descended into violence, the nation was thrown into complete pandemonium. When protesters stormed parliament, police opened fire.

Protests against an annual finance bill were mostly organized by young Kenyans and represented a general outrage. Ruto was forced to veto the law, citing an enormous budget shortfall.

“We will be proposing to the National Assembly a budget cut of not the entire 346, but a budget cut of 177 billion and borrowing the difference (around 169 billion shillings),” Ruto stated on Friday, July 5.

Approximately 70% of Kenya’s GDP, or 10 trillion shillings ($78 billion), is owed by the country.

According to Ruto, the choice to borrow would increase the fiscal deficit “from 3.3 percent to 4.6 percent” but would cover the cost of some services.

These would include maintaining funding for a milk stabilization and fertilizer program that safeguards farmers, as well as employing secondary school teachers and medical interns.