Rising Prices and Tax Burden Spark Anger and Frustration as Protests Turn Violent
Kenya braces itself for a wave of opposition protests as citizens express their outrage against the escalating cost of living and tax increases. The demonstrations, which have turned violent in recent months, highlight the growing discontent among Kenyans who are struggling to make ends meet. At least 24 people have lost their lives during these protests.
James Wainaina in Nairobi voted for President William Ruto in recent presidential election. Ruto had positioned himself as the candidate for the “hustler nation” – representing ordinary people facing financial challenges. However, Wainaina now feels betrayed and supports the ongoing protests.
Since President Ruto assumed office, the cost of living has continued to rise while the government implemented tax hikes. Ruto argues that increased revenue is necessary to address escalating debt repayments and fund job creation projects. However, these tax increases have further burdened the poorest Kenyans.
Wainaina’s daughter, a high school student, was unable to attend school for three weeks due to his inability to pay the school fees of 14,000 Kenyan shillings ($100; £75). The cost-of-living crisis has also taken a toll on his taxi business, resulting in fewer clients and most of his earnings going toward operational expenses.
He recalls that just five years ago, he could earn up to 4,000 shillings a day, enough to cover basic necessities, including school fees. However, his income has significantly declined, and there are times when he barely takes home 500 shillings after expenses, leaving him unable to cover his daily fuel costs.
Wainaina believes that the government has not made it easy for small businesses, particularly those struggling to make a living. He feels deceived by false promises and believes that the situation is deteriorating, with increasing fuel prices triggering a rise in the cost of other essential goods, including electricity.
According to a recent survey by local polling firm Tifa, 56% of Kenyans believe that the country is headed in the wrong direction, up from 48% in March. This discontentment may be fueling the support for the ongoing opposition protests.
Government data reveals substantial increases in the prices of staple food products in the past year. Maize, grain, and flour have risen by up to 30%, while rice and potatoes have increased by nearly 20%. Sugar prices have surged by nearly 60%. Despite these price hikes, the government doubled the value-added tax on fuel products and introduced a housing levy on employees’ basic pay.
The government justifies these new taxes as necessary to address the country’s high debts, accusing the previous administration of contributing significantly to the debt burden through infrastructure projects that failed to benefit ordinary Kenyans. President Ruto and government officials argue that paying these taxes is a short-term sacrifice for the country’s future.
However, many Kenyans, including Edwin Simiyu, a boda boda (motorcycle taxi) rider in Kiambu town, regret voting for the current administration. Simiyu expresses a sense of betrayal, stating that promises of positive changes within a year have been replaced with the notion that it will take years to see improvements. He highlights the suffering and neglect experienced by hard-working citizens.
Charles Kaindo, a street hawker, echoes the sentiment of broken promises and warns that a breaking point may be reached, leading some individuals to turn to crime or even contemplate taking their own lives due to unbearable suffering.
However, Jane Njeri, an accountant in the private sector, sees higher taxes as negative and acknowledges the government’s need for funds to repay debts. She believes that the current economic challenges, including a weakening shilling, demand tough measures.
Economic analysts express differing views on the government’s approach. Ken Gichinga, chief economist at Mentoria Economics, suggests that rather than burdening citizens with consumption taxes, the government should focus on spurring private-sector growth through measures such as lower interest rates, reduced taxation, and loosened regulation.
Odhiambo Ramogi, an economic analyst, supports the president’s intentions but argues that the government should first address wasteful spending before increasing taxes on ordinary Kenyans.
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