NAIROBI: Kenyan President William Ruto announced new fiscal measures on Friday following protests that led to the abandonment of contentious tax hikes and left 39 people dead.
The protests, initially peaceful but escalating into violence, erupted over steep tax increases, prompting police to fire on demonstrators who stormed parliament, causing partial damage.
While primarily led by Gen-Z Kenyans, the protests reflected broader public frustration over an annual finance bill that Ruto was compelled to withdraw, citing a substantial funding deficit.
“We will propose a budget cut of 177 billion shillings to the National Assembly and borrow the remaining 169 billion,” Ruto stated.
Kenya’s public debt stands at approximately 10 trillion shillings ($78 billion), equivalent to about 70 percent of its GDP.
Ruto acknowledged that the borrowing would increase the fiscal deficit from 3.3 percent to 4.6 percent but asserted that it would finance essential services such as hiring secondary school teachers, medical interns, and supporting agricultural programs.
To streamline government expenditure, Ruto announced the absorption of 47 state-run organizations into other departments. He also disclosed austerity measures, including the dissolution of the offices of the first lady and the deputy president’s spouse, as well as halving the number of government advisors.
Furthermore, Ruto revealed plans to reduce the budget for government renovations, addressing concerns raised earlier about excessive spending on items like curtains for the deputy president’s office.
“All non-essential travel by state and public officers is suspended,” he concluded.
