Kenya Finance Bill: Why are people still protesting despite president's tax climbdown

Kenyan authorities put up barriers on roads leading to the presidential residence on Thursday, as a group of demonstrators pledged to "occupy State House" despite the president's reversal on controversial tax increases that ignited a week of protests.
The extent to which protesters would be appeased by President William Ruto's decision on Wednesday to retract the finance bill remained uncertain.This decision came just a day after violent confrontations resulted in the deaths of at least 23 individuals and a brief storming of parliament.
Ruto is facing the most significant challenge of his two-year tenure as the youth-driven protest movement has rapidly evolved from online criticism of the tax hikes into large-scale demonstrations calling for political reform.
The controversial finance bill
After a week of widespread protests, President Ruto on Wednesday reversed course on the proposed tax increases, which would have caused prices to rise on various daily items and services.
The finance bill aimed to raise or introduce taxes or fees on a range of goods and services, "from internet data to diapers," in an effort to generate an additional $2.7 billion in domestic revenue for the Kenyan government. However, as public anger grew, some of the measures were removed from the bill.
The Kenyan government has previously stated that the country's debt stands at approximately 10 trillion shillings (€72.9 billion, $78 billion), which is equivalent to about 70% of its GDP. President Ruto had argued that the tax hikes were necessary to reduce Kenya's high debt, which has made it more difficult to secure loans and has put pressure on the Kenyan shilling.
In light of the public's rejection of the proposed tax increases, President Ruto announced that he would initiate a dialogue with Kenyan youth and implement austerity measures, including cuts to the budget of the presidency.
"The people have spoken," Ruto said in an address, adding that he would seek "engagement with the young people of our nation."
President Ruto recently earlier signed a 2023 finance bill, which included a controversial tax on salaries for housing. Although the bill was met with disapproval, the public reaction was not as intense as the current protests.
When it started and Where
The controversial bill, which sparked the initial protests, was first introduced to the public on June 18. The demonstrations, which originated in the capital city of Nairobi, quickly spread to other regions of Kenya, including the coastal city of Mombasa and even reaching as far as Eldoret, a town in the Rift Valley known for its strong support of the president.
During the parliamentary session in which the contentious bill was passed, members of Kenya's political opposition staged a walkout in protest. While Kenya has experienced demonstrations in the past, experts and activists cautioned that the current situation posed a more significant threat.
"We are dealing with a new phenomenon and a group of people that is not predictable," said Herman Manyora, an analyst and professor at the University of Nairobi. "We don't know whether these people will fear the army."
Deadly demonstrations resulting in fatalities
The demonstrations have turned violent, resulting in loss of life. While some protesters have stated their intention to halt the demonstrations, having achieved their objectives, others remain determined to continue and demand Ruto's resignation.
Social media platforms have been abuzz with calls for protesters to storm State House, "the president's formal offices and residence." The situation remains tense as the nation grapples with the aftermath of the unpopular finance bill and the ensuing unrest.
Several individuals backing the protests expressed satisfaction with the accomplishments and declared their intention to refrain from participating in demonstrations on Thursday.
One supporter, in a message posted on the social media platform X, said, "The enemy was the finance bill. The enemy is crushed. What more do you want?"
However, a group of protesters remained resolute, asserting that nothing short of President Ruto's resignation would suffice to meet their demands.
The nation was gripped by unrest on Tuesday as demonstrators, angered by a proposed tax increase, forcibly entered the legislative building, setting a portion ablaze while parliamentarians fled for safety.
Reports from medical personnel and observers on the ground indicated that police had resorted to using firearms against the protesters, resulting in fatalities. In response to the escalating situation, the armed forces were deployed.
India issues advisory to citizens
In view of the prevailing tense situation, all Indians in Kenya are a exercise utmost caution, restrict non-essential movement and avo affected by the protests and
Total damage and lives lost
The protests that erupted across Kenya on Tuesday, spanning from urban centers to countryside regions, affected a majority of the nation's 47 counties. Even President Ruto's birthplace, Eldoret, situated in his Kalenjin ethnic stronghold, witnessed major protests.
The nationwide unrest resulted in the death of atleast 23 individuals succumbing to their injuries, according to the Kenya Medical Association. The organization also reported that 30 people were receiving medical treatment for gunshot wounds.
(With input from agencies)