The Kenyan police deployed tear gas and water cannons to disperse protesters in Nairobi, as tensions escalated over proposed tax hikes.

The demonstration which occurred around parliament in the capital, saw hundreds rallying against a finance bill they believe will exacerbate the country’s already severe cost-of-living crisis.

On Thursday, the streets of Nairobi were a battleground as demonstrators voiced their anger over the new financial legislation.

The bill in question seeks to introduce additional taxes and levies, raising the cost of essential goods.

The government projects that these tax hikes could generate 346.7 billion shillings ($2.7 billion), equating to 1.9 percent of the GDP, and potentially shrink the budget deficit from 5.7 percent to 3.3 percent of GDP.

Despite making some concessions earlier in the week, President William Ruto’s administration plans to proceed with several tax increases.

The government justifies these measures as necessary steps to bolster national revenue and reduce dependency on external loans.

However, this stance has not quelled public dissent, with protests erupting in key opposition strongholds, including Mombasa and Kisumu.

As parliament debated the bill’s second reading, Nairobi saw significant roadblocks and a heavy police presence near the legislative building.

According to Malcolm Webb, protesters outnumbered the police, creating a volatile environment.

He also described the overwhelming use of tear gas.

“Police are firing a lot of tear gas here … and there is a thick smell of tear gas in the air where we are … with protesters chanting, ‘Ruto must go!’”
Malcolm Webb

Moreover, the demographic makeup of the protesters is notably different from past demonstrations.

These protesters, predominantly young and active on social media, stand apart from the politically motivated protests of a year ago, which were also driven by economic concerns.

“The cost of living has been going up, on and off, since the global [COVID-19] pandemic,” Webb noted.

Tensions Escalate Over Proposed Tax Hikes

Stella Agara, a tax justice activist, highlighted the growing frustration among Kenyans over increased taxation and austerity measures targeting the poorest citizens. “Kenyans are fed up with the increased taxation,” Agara said, noting the discomfort caused by the government’s economic policies.

Agara also pointed out the significant involvement of Generation Z in the protests. Historically disengaged from electoral politics, this group is now at the forefront, driven by proposed taxes on digital content creation — a sector they dominate.

Young Kenyans’ involvement is also fueled by witnessing their parents’ financial struggles under an “insensitive” government, Agara added.

The administration’s decision to remove proposed levies on bread, car ownership, and financial and mobile services in response to protests has not been enough to calm the public anger.

The treasury warned that these cuts would create a 200-billion-shilling ($1.5 billion) budget shortfall. In a bid to cover this deficit, the government announced increases in fuel prices and export taxes.

Critics argue that these measures will only deepen the economic hardships in a country already grappling with high inflation.

Diesel, vital for transport, power generation, and agriculture, along with kerosene, essential for household cooking and lighting, will see price hikes, impacting daily life for many Kenyans.

Also, the final reading of the controversial finance bill looms, with the deadline of June 30 fast approaching, leaving both the government and the protesters bracing for the next phase of this unfolding crisis.

Despite the largely peaceful nature of Tuesday’s protest, the police response was heavy-handed, with numerous tear gas volleys fired.

According to a consortium of lobby groups, including the Kenya National Commission on Human Rights (KNCHR) and Amnesty Kenya, at least 335 people were arrested during the demonstrations.