STORY: :: June 18, 2024
After deadly protests against the Kenyan president's finance bill - containing tax increases - the bill has been scrapped... and now, President William Ruto has unveiled plans to plug the massive hole in the budget.
At least 39 people were killed in recent clashes with police, amplifying the biggest crisis of Ruto's term so far.
In a Friday speech, Ruto said he would ask for - not tax increases - but spending cuts amounting to over $1 billion U.S. for the fiscal year that began this month, as well as additional borrowing.
"Whatever we are going to borrow, the difference, will increase our fiscal deficit from what I intended..."
The president has been caught between the demands of lenders - like the International Monetary Fund - to cut deficits, AND citizens reeling from rising living costs.
According to Ruto, austerity measures will include the end of 47 state corporations, a 50% reduction in the number of government advisers... along the removal of budget lines for the president and deputy president's spouses.
"I believe these changes will set out our country on a trajectory towards economic transformation."
Following the speech, Ruto hosted a live audio forum on X meant to engage with young people. He faced sharp questioning about police brutality, alleged abductions by state security agents and economic policy.
Many protesters are still calling for the president to resign.
Activists have blamed the violence on thugs hired by politicians to discredit the protest movement. But the government has said that opportunistic criminals are responsible.
