Kenyan President William Ruto announced significant federal budget cuts and other government reforms on Friday to address the country’s overwhelming debt, following violent protests against a controversial tax bill.
In response to the unrest, which reportedly resulted in dozens of deaths, Ruto retracted the finance bill that aimed to generate $2.7 billion primarily through tax hikes. Instead, he proposed a compromise plan to reduce the budget by $1.39 billion and finance the remaining deficit through borrowing.
During a protest in Machakos County on July 5, 2024, family, friends, and fellow demonstrators carried a photo of Rex Masai, who was fatally shot by police during the anti-finance bill protests, as they chanted slogans to honor him.
To implement the new plan, Ruto announced the elimination of 47 state corporations with redundant functions and a 50% reduction in the number of government advisors. Additionally, the filling of chief administrative secretary positions is suspended, and government funds will no longer support the offices of the first lady, the deputy president’s spouse, and the prime cabinet secretary.
Moreover, public servants reaching the retirement age of 60 will be required to retire immediately without extensions. The purchase of new government vehicles is suspended for 12 months, except for security agencies, and nonessential travel by state and public officers is also suspended.
Some of these measures align with the protesters’ demands.
Ruto also announced the formation of an independent task force to conduct a comprehensive, forensic audit of the country’s public debt.
“This audit will provide Kenyans with clarity on the extent and nature of our debt, how public resources have been expended, and recommend proposals for managing public debt sustainably to avoid burdening future generations,” he said.
According to Kenya’s National Commission on Human Rights, nearly 40 people have died and 360 have been injured nationwide since the protests began three weeks ago.
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