President of Kenya, Mr. William Ruto has announced the withdrawal of the ‘rejected’ Finance Bill 2024.
The withdrawal today, June 26, comes amidst intense protests in the country by Kenyan citizens, mostly youths who, according to reports, do not want tax burdens.
One of the reports tracked by our correspondent says: “In the 2024/25 bill, the Kenyan government aims to raise $2.7 billion in additional taxes to reduce the budget deficit and state borrowing. Kenya’s public debt stands at 68% of GDP, higher than the 55% of GDP recommended by the World Bank and the International Monetary Fund.”
Good People, this is going to be the new normal in most African economies. We carry excessive debts which were accumulated with nothing to show for. Debt is not bad, in itself, what is bad is debt without a strategic value.
Most African economies should be concerned because these debts are compounding their interests, and there is no viable path to deal with them. The Kenyan model of taxing the people has backfired: “In 2024, Kenya has been witnessing a significant civil unrest due to the government’s proposed finance bill. The bill, which includes tax hikes, has sparked widespread protests across the nation”.
The Kenyan protest is not an isolated issue; it will be the new normal as most African economies explore ways to service those exploding debts! As that happens, no government can think strategically because they would be concerned about the next interest payment. Magically, you have a lost decade for Africa. In other words, Africa will waste this decade as nothing is happening to advance the people. You are going to see governments fighting moving targets like forex, debts, etc, and will be severely lost that a 90-day plan will look like an eternity.
Withdrawing the Bill, President Ruto reportedly said “Having reflected and listening keenly to the people of Kenya who have said loudly that they have nothing to do with the Finance Bill 2024. I have agreed with MPs that the Finance Bill be subsequently withdrawn”
