Contemporary and Social Issues

Kenya’s 2024 Finance Bill: A Catalyst for Global Change and Reflection

Economics

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Introduction:

Kenya’s recent finance bill ignited a firestorm of protests, with citizens expressing their discontent over what they perceived as punitive tax measures. As the nation grapples with economic challenges, religious leaders and young activists have taken to the streets, demanding a re-evaluation of the bill. In this article, we delve into the key issues surrounding the bill, explore its impact on Kenya’s stability, and consider its implications for global peace.

The Finance Bill: A Source of Discontent:

In the 2024/25 bill, the Kenyan government wanted to raise $2.7 billion in additional taxes to reduce the budget deficit and 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 [1].

However, the proposed measures have been met with widespread resistance. Citizens view them as punitive, exacerbating the already high cost of living. Items such as internet data, fuel, bank transfers, bread, and vegetable oil were targeted for taxation [2]. The bill’s passage on 25th June 2024, despite warnings from a youth-led movement, has ignited anger and frustration across Kenya.

Youth-Led Protest:

Starting on 18th June 2024, young Kenyans organized through social media and spearheaded a week-long peaceful demonstration against the finance bill. Their rallying cry is clear: They want the bill scrapped entirely. These protests began in Nairobi but have since spread to other parts of Kenya, reflecting the depth of public frustration [3].

However, on the afternoon of June 25, the protests took a violent turn. Demonstrators breached police barricades and stormed the parliament building, setting fires, destroying offices, and stealing property, including the speaker’s mace. The police response, while aimed at restoring order, resulted in tragic consequences.

The Kenya National Commission on Human Rights reported that 39 individuals lost their lives during the protests, highlighting the need for all parties to prioritize de-escalation and peaceful expression [4]. It is however worthy to note that efforts to address the underlying concerns and promote constructive dialogue are essential in promoting peace and security moving forward.

Religious Leaders’ Support:

Kenya’s religious leaders representing Christians, Hindus, Muslims, and African Traditional Religion also voiced their opposition to the bill. They argue that the proposed tax measures are punitive and disproportionately affect vulnerable populations. In a rare show of unity, religious figures from various faiths have called for the withdrawal of the bill [5]. Their stance, they believe, aligns with the principles of justice and compassion found in their religious teachings.

Austerity Measures to Address Fiscal Deficit:

President William Ruto, Kenya’s president, withdrew the bill in response to the protests. Now, the bill will return to parliament with the recommendation that all its clauses be deleted.

Having reflected on the continuing conversation regarding the content of the Finance Bill 2024, and listening keenly to the people of Kenya who have said loudly that they want nothing to do with this Finance Bill 2024, I concede, and therefore I will not sign the 2024 finance bill… There is a need for us as a nation to pick up from here and go into the future”, Ruto said. [6]

To address the fiscal deficit, the government plans to implement austerity measures which will include cuts to the presidency’s budget and reductions in operational expenditure, such as travel expenses and vehicle purchases. [2]

World Peace and Stability: A Broader Perspective:

Beyond Kenya’s borders, the unrest caused by the finance bill raises broader questions about stability and peace. Economic disparities can fuel social discontent, leading to civil unrest. As Kenya grapples with its internal struggles, the international community must pay attention. Ensuring economic justice and addressing citizens’ grievances can contribute to a more peaceful world.

The Islamic Guiding Perspective:

In line with the teachings of Islam, the Holy Qur’an provides a guide on matters of justice, fairness, and economic equity.

“O ye who believe! Be steadfast in the cause of Allāh, bearing witness in equity, and let not a people’s enmity incite you to act otherwise than with justice. Be always just, that is nearer to righteousness. And fear Allāh. Surely Allāh is aware of what you do.” — Holy Qur’an 5:9.

This verse emphasizes the importance of leaders acting equitably and justly towards considering the welfare of all.

In light of similar incidents in the past, we turn to the wisdom of the 5th Caliph of the Ahmadiyya Muslim Community, Hazrat Mirza Masroor Ahmad (aba), who emphasizes justice and honesty as a beacon for leaders facing challenging decisions. In his keynote address on 14th March 2015, at the 12th National Peace Symposium hosted by the Ahmadiyya Muslim Community UK, His Holiness said:

“We should realise and recognise the critical need of the hour. We must accept that peace can only be built upon the solid foundations of honesty, integrity and justice. These are the keys to peace. Until there is honesty and justice no solution will ever prove beneficial.” [7]

By reflecting on these teachings, Kenya’s policymakers and more importantly, governments across the world should be able to navigate such crises given this wisdom.

Conclusion:

Kenya’s case transcends a mere economic policy—it reflects the hopes and aspirations of its citizens. Will all other governments take a cue from Kenya’s situation by prioritizing the well-being and prosperity of their citizens towards contributing to world peace, security and stability?

About the author: Jamal Sononam Lambon Jnr holds a degree in Bachelor of Science in Administration – Accounting and is certified Chartered Accountant from the Institute of Chartered Accountants, Ghana (ICAG).

Endnotes:

[1]. https://www.deloitte.com/ke/en/services/tax/analysis/finance-bill-2024-enters-the-crucial-stage.html

[2]. https://www.reuters.com/world/africa/kenyas-finance-bill-why-has-it-triggered-protests-2024-06-25/

[3]. https://www.africanews.com/2024/06/26/kenyas-finance-bill-this-is-what-led-to-the-protest/

[4]. https://www.crisisgroup.org/africa/east-and-southern-africa/kenya/what-behind-kenyas-protest-movement

[5]. https://www.aciafrica.org/news/11234/we-support-them-fully-kenyas-religious-leaders-on-gen-z-led-peaceful-protests-against-finance-bill-2024

[6]. https://tribuneonlineng.com/kenya-protest-president-ruto-withdraws-finance-bill/ [7]. https://www.pressahmadiyya.com/press-releases/2015/03/muslim-leader-says-justice-and-honesty-required-to-prevent-outbreak-of-third-world-war/