Kenya’s President William Ruto says the country will have to borrow more to keep the government running following the emphatic rejection of a hugely unpopular finance bill that would raise more money via taxes.
Though the bill was passed by Parliament, the president withdrew it after the deadly violence that followed the controversial tax hikes saw several people killed and parts of the parliament set ablaze.
But on Sunday, he disclosed that Kenya would have to borrow one trillion shillings just “to be able to run our government.” He added that he was also looking at cuts in spending across government, including in his own office, as well as that of the first lady and the deputy president’s wife’s office.
The Kenyan government intended to borrow about 600 billion Kenyan shillings whilst raising about 350 billion in taxes, and Ruto stressed that dropping the bill would have enormous consequences.
“I have been working hard to pull Kenya out of a debt trap. It is easy for us, as a country, to say: ‘Let us reject the finance bill.’ That is fine. And I have graciously said we will drop the finance bill, but it will have huge consequences,” the president said on Sunday night.
With the country spending more than half its revenues to service its over $80 billion debt, Ruto says planned education, healthcare, and agriculture interventions must be re-evaluated.
The recent withdrawal of the finance bill has failed to quell public discontent with the government, as further protests are scheduled for this week. Protesters are seeking increased accountability from the government, with some even calling for the president’s resignation.
Additionally, they are dismayed by what they perceive as the government’s lack of empathy towards their concerns, and they accuse the police of using excessive force in response to the demonstrations.
Dozens were killed, and many others wounded, as Ruto said the police had “done their best they could”, adding that “If there are any excesses, we have mechanisms to make sure that they are dealt with,” he said.