VenturesNow

Kenyan anti-tax protests extend to more towns and cities

Published

5 months ago

June 21, 2024

Protests against the Finance Bill have expanded throughout Kenya, from the capital city of Nairobi to other regions, as citizens remain opposed to President William Ruto’s proposal to raise the Ksh3.9 trillion ($31 billion) national budget.

After a 24-hour respite, street demonstrations in Nairobi resumed on Thursday morning, with armed police using tear gas to scatter the demonstrators. Running clashes broke out between the officers and masses of primarily young demonstrators who were trying to gain entry to the Parliament Buildings.

Several roads close to Parliament were shut by anti-riot police to keep an eye on it and make sure no citizens entered.

“We shall use other ways to get to Parliament and occupy it,” a protester said.

Other towns and cities, like as Mombasa, Kilifi at the Coast, Lodwar, Kakamega, Kisii, Nakuru, Eldoret, Nyeri, Meru, Nanyuki, and Kisumu, also saw similar demonstrations. Mombasa locals participate in a nonviolent protest march against Finance Bill 2024. The demonstrators that compelled Dr Ruto to rescind some of his tax proposals now demand that Parliament reject the entire bill.

“Don’t Amend, Reject! Ruto Must Go!,” they chanted in Nairobi’s Central Business District as they played cat and mouse with the police.

Thousands of young protestors flooded the streets of Eldoret, Dr Ruto’s hometown, stopping any commercial activity. The sizable throngs that participated in the #OccupyEldoret demonstrations mirrored the sea of humanity that was seen both during President Ruto’s inauguration and during the celebration of his victory in the 2022 election.

The protesters created a stir in the community as bystanders expressed support for their effort to get the Kenya Kwanza administration to remove the harsh taxes found in Finance Bill 2024.

Before gathering at several locations on the town’s outskirts, the demonstrators had first divided into four groups of several hundred people, waving protest placards and screaming anti-government, anti-Ruto, and anti-Finance Bill songs.

Calling out their elected leaders, the demonstrators threatened to closely monitor MPs during Thursday afternoon’s legislative vote. The demonstrations were mainly nonviolent; there was not a single instance of police walking side by side with protestors with tear gas canisters.

Despite the large number of police, the marchers were being gently led and protected by the law enforcement officials.

The proposed 16% VAT on bread, sugar transportation, financial services, foreign exchange transactions, and the 2.5% motor vehicle tax were removed from the Finance Bill, according to a Tuesday announcement from the Kenyan government.

VenturesNow

IMF mission concludes 4th loan program assessment in Egypt

Published

25 minutes ago

November 22, 2024

Ifeoluwa Dada

Following the completion of a recent visit to Egypt, the International Monetary Fund (IMF) has announced that its mission had achieved significant strides in policy talks aimed at concluding the fourth review of the IMF loan program.

The review is the fourth in Egypt’s most recent 46-month IMF loan program, which was authorised in 2022 and increased to $8 billion this year following an economic crisis characterised by high inflation and chronic foreign exchange shortages. It may unleash more than $1.2 billion in financing.

Along with reaffirming its commitment to maintain a flexible exchange rate system, the IMF stated that Egypt “has implemented key reforms to preserve macroeconomic stability,” including the unification of the currency rate that facilitated imports.

Earlier on Wednesday, Egypt’s Prime Minister Mostafa Madbouly said Cairo has asked the IMF to modify the targets for the programme not only for this year, but for its full duration, he added without giving more details.

“Discussions will continue over the coming days to finalize agreement on the remaining policies and reforms that could support the completion of the fourth review,” the IMF added in its statement.

VenturesNow

Kenya seeks $750m from World Bank, obtains $200m from AfDB— Official

Published

2 days ago

November 20, 2024

Ifeoluwa Dada

The head of debt management for the finance ministry told Reuters that Kenya had obtained a $200 million loan from the African Development Bank (AfDB) and was negotiating a fresh $750 million loan with the World Bank.

After being forced to abandon proposed tax rises costing more than 346 billion shillings ($2.68 billion) in June due to fatal demonstrations, the East African nation’s administration, which has been grappling with significant debt, has been frantically seeking fresh funding.

The Finance Ministry’s public debt management office director general, Raphael Owino, told Reuters that the IMF’s October clearance of the seventh and eighth reviews, which opened the door for a $606 million loan tranche, had aided the ministry’s talks for more loans.

“The World Bank is coming on board, riding on the back of IMF receipts,” Owino said. “The AfDB is already on board.”

The discussions for more assistance, which came under the World Bank’s “Development Policy Operations” (DPO) with the government, were confirmed by a representative at the organization’s Kenya office.

“The amount of the current (loan) is yet to be determined. The amount will also depend on the implementation of the policy reforms agreed upon,” the spokesperson told Reuters, adding that past DPO loans averaged about $750 million.

In May, the World Bank approved the latest round of DPO loans, totalling $1.2 billion.

According to a statement made last month by Finance Minister John Mbadi, Kenya has set a foreign borrowing goal of 168 billion shillings for the fiscal year ending in June 2025.