Kenya's President backs down on tax rises after deadly protests


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Kenyan President William Ruto said on Wednesday he will not sign into law a finance bill proposing new taxes, a day after protesters stormed parliament and at least 20 people were shot dead by security forces.

The government wanted to raise funds to pay off debt but Kenyans said the bill would cause more economic pain as millions struggle to get by.

The chaos on Tuesday led the government to deploy the military and Mr Ruto called protesters' actions “treasonous”. It was the biggest assault on Kenya’s government in decades.

The death toll from the crackdown has risen to 22, according to the state-funded Kenya National Commission on Human Rights, which has pledged to investigate.

On Wednesday, the President said the bill had caused “widespread dissatisfaction”, that he has listened to the people and “conceded”. It is a major setback for Mr Ruto, who came to power vowing to help Kenyans cope with rising costs but has seen much of the country unite in opposition to his latest attempt at reforms.

"It is necessary for us to have a conversation as a nation on how we manage the affairs of the country together,” the President said.

The White House said it condemned the violence in Kenya, where thousands took to the streets in protest this week.

"We offer our deepest condolences, of course, to the families who have been impacted by this violence, and we continue to urge restraint so that no further people are put in harm’s way while exercising their right to peaceful public assembly," national security spokesman John Kirby said.

"The United States has been in touch with the Kenyan government to urge appropriate use of force by the police to respect human rights and, quite frankly, to respect due process for those that have been detained, and we will continue to push for calm to prevail," he said.

Earlier in the day, Kenyan protesters had vowed to keep up their demonstrations against new tax increases, a day after police opened fire on crowds trying to storm parliament, leaving at least eight dead and scores injured.

As heavily armed officers patrolled the streets of the capital Nairobi, supporters of the week-old protest movement took to X, using the hashtag #Tukutanethursday, or "see you on Thursday" in a mix of Swahili and English.

An online outpouring of anger over rising taxes has swelled into a nationwide protest movement calling for a political overhaul, in the most serious crisis of Mr Ruto's two-year-old tenure.

Many social media users focused on Mr Ruto's speech after the clashes, in which he said the attack on parliament was the work of "criminals pretending to be peaceful protesters".

"Good morning fellow CRIMINALS Tupatane Thursday To do what CRIMINALS do," one X user posted.

Nairobi's main public mortuary received the bodies of six people killed in Tuesday's protests, a police officer told Reuters. Another two bodies and 160 people with injuries were taken to Kenyatta National Hospital, health officials said.

Mr Ruto said in his televised address to the nation late on Tuesday that the debate about the tax measures – passed only minutes before the parliament building was stormed – had been "hijacked by dangerous people".

  • Protesters gather in Nairobi. AFP
    Protesters gather in Nairobi. AFP
  • Protesters hold banners and chant anti-government slogans in front of police officers. AFP
    Protesters hold banners and chant anti-government slogans in front of police officers. AFP
  • Police use a water cannon to disperse protesters. EPA
    Police use a water cannon to disperse protesters. EPA
  • Protesters attempt to prevent police from using a water cannon. AFP
    Protesters attempt to prevent police from using a water cannon. AFP
  • A police vehicle burns in front of parliament. Getty images
    A police vehicle burns in front of parliament. Getty images
  • Smoke and tear gas drifts across the streets of Nairobi. AFP
    Smoke and tear gas drifts across the streets of Nairobi. AFP
  • Kenyan President William Ruto gives a speech after protests against tax hikes, at State House in Nairobi. EPA
    Kenyan President William Ruto gives a speech after protests against tax hikes, at State House in Nairobi. EPA
  • Protestors breach the Parliament building. EPA
    Protestors breach the Parliament building. EPA
  • Demonstrators broke into the parliament building in Nairobi. EPA
    Demonstrators broke into the parliament building in Nairobi. EPA
  • Protesters stormed the Kenyan parliament building in protest against a proposed new law to raise taxes. AFP
    Protesters stormed the Kenyan parliament building in protest against a proposed new law to raise taxes. AFP
  • Armed Kenyan officers walk past flames and smoke coming out of a burning building, part of the Parliament building. EPA
    Armed Kenyan officers walk past flames and smoke coming out of a burning building, part of the Parliament building. EPA
  • Police officers and security personnel protect the Kenyan Parliament as protesters try to storm the building during a nationwide strike to protest against tax hikes. AFP
    Police officers and security personnel protect the Kenyan Parliament as protesters try to storm the building during a nationwide strike to protest against tax hikes. AFP
  • People exit from the windows of a burning building. EPA
    People exit from the windows of a burning building. EPA
  • The demonstration against Kenya's proposed finance bill in Nairobi on June 25 was initially peaceful. Reuters
    The demonstration against Kenya's proposed finance bill in Nairobi on June 25 was initially peaceful. Reuters
  • A number of protesters have been shot dead. Reuters
    A number of protesters have been shot dead. Reuters
  • Police used tear gas and water cannon in an attempt to disperse the demonstrators. AFP
    Police used tear gas and water cannon in an attempt to disperse the demonstrators. AFP
  • Running battles took place on Kenya's streets after police had opened fire on the crowds. AFP
    Running battles took place on Kenya's streets after police had opened fire on the crowds. AFP
  • Protesters scatter as Kenyan police spray water on the crowd. AP
    Protesters scatter as Kenyan police spray water on the crowd. AP
  • President William Ruto was attending an African Union retreat and was not in the capital on Tuesday. AP
    President William Ruto was attending an African Union retreat and was not in the capital on Tuesday. AP
  • A police officer fires tear gas at demonstrators, many of whom fear the new law will exacerbate the cost-of-living crisis. EPA
    A police officer fires tear gas at demonstrators, many of whom fear the new law will exacerbate the cost-of-living crisis. EPA

The government called in the army to help police deal with a "security emergency", though there were no reports of troops on the streets of Nairobi on Wednesday.

Last week, protesters circulated a schedule that called for the occupation of parliament on Tuesday and of State House, the President's office and residence, on Thursday.

Protester Wellington Ogolla said he would head back out on to the streets. "It's our right to demonstrate ... we are just expressing ourselves," he told Reuters as he walked through central Nairobi, where the smell of tear gas lingered.

Many said they had had enough of a political system under which the major parties took turns in power and funnelled jobs and opportunities to supporters and people from their own ethnic groups.

"Our parents failed us. They voted along tribal lines," Derick Kolito, 26, said. Despite having a master's degree in accounts he said he has been unable to find a job.

"I am the son of peasants," he added. "You must have a godfather to get a job ... I wish I was born in another country."

Protesters in Nairobi had tear gas fired at them by riot police during a nationwide strike to protest against new tax measures. AFP
Protesters in Nairobi had tear gas fired at them by riot police during a nationwide strike to protest against new tax measures. AFP

Mr Ruto won an election almost two years ago on a platform of championing Kenya's working underprivileged but has been caught between the competing demands of a hard-pressed population and lenders such as the International Monetary Fund, which is urging the government to cut deficits to obtain more funding.

The protest movement, which has no formal leadership and has primarily been organised on social media platforms, drew thousands of supporters in dozens of towns and cities on Tuesday.

Divisions among the main ethnic groups have traditionally been a key driver of politics and protest in Kenya, with members of one group coming out against what they see as favouritism towards another.

Westen Shilaho, a scholar who has studied Kenyan protest movements, said the political elite have traditionally used "the ethnic card" to enhance their own power.

"Now that that one is not working in this context, they will try to insert the class card," he said.

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WHERE TO STAY:

Meghauli Serai, A Taj Safari - Chitwan National Park resort (tajhotels.com) is a one-hour drive from Bharatpur Airport with stays costing from Dh1,396 per night, including taxes and breakfast. Return airport transfers cost from Dh661.

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The finalists

Player of the Century, 2001-2020: Cristiano Ronaldo (Juventus), Lionel Messi (Barcelona), Mohamed Salah (Liverpool), Ronaldinho

Coach of the Century, 2001-2020: Pep Guardiola (Manchester City), Jose Mourinho (Tottenham Hotspur), Zinedine Zidane (Real Madrid), Sir Alex Ferguson

Club of the Century, 2001-2020: Al Ahly (Egypt), Bayern Munich (Germany), Barcelona (Spain), Real Madrid (Spain)

Player of the Year: Cristiano Ronaldo, Lionel Messi, Robert Lewandowski (Bayern Munich)

Club of the Year: Bayern Munich, Liverpool, Real Madrid

Coach of the Year: Gian Piero Gasperini (Atalanta), Hans-Dieter Flick (Bayern Munich), Jurgen Klopp (Liverpool)

Agent of the Century, 2001-2020: Giovanni Branchini, Jorge Mendes, Mino Raiola

Company profile

Name: Thndr

Started: October 2020

Founders: Ahmad Hammouda and Seif Amr

Based: Cairo, Egypt

Sector: FinTech

Initial investment: pre-seed of $800,000

Funding stage: series A; $20 million

Investors: Tiger Global, Beco Capital, Prosus Ventures, Y Combinator, Global Ventures, Abdul Latif Jameel, Endure Capital, 4DX Ventures, Plus VC,  Rabacap and MSA Capital

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Stars: John David Washington, Robert Pattinson, Elizabeth Debicki, Dimple Kapadia, Michael Caine, Kenneth Branagh 

Rating: 5/5

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%3Cp%3EAn%20FTA%20with%20the%20GCC%20would%20be%20very%20significant%20for%20the%20UK.%20%20%20%20%20%20%20%20%20%20%20%20%20%20%20%20%20%20%20%20%20%20%20%20%20%20%20%20%20%20%20%20%20%20%20%20%20%20%20%20%20%20%20%20%20%20%20%20%20%20%20%20%20%20%20%20%20%20%20%20%20%20%20%20%20%20%20%20%20%20%20%20%20%20%20%20%20%20%20My%20Department%20has%20forecast%20that%20it%20could%20generate%20an%20additional%20%C2%A31.6%20billion%20a%20year%20for%20our%20economy.%3Cbr%3EWith%20consumer%20demand%20across%20the%20GCC%20predicted%20to%20increase%20to%20%C2%A3800%20billion%20by%202035%20this%20deal%20could%20act%20as%20a%20launchpad%20from%20which%20our%20firms%20can%20boost%20their%20market%20share.%3C%2Fp%3E%0A

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

Why it pays to compare

A comparison of sending Dh20,000 from the UAE using two different routes at the same time - the first direct from a UAE bank to a bank in Germany, and the second from the same UAE bank via an online platform to Germany - found key differences in cost and speed. The transfers were both initiated on January 30.

Route 1: bank transfer

The UAE bank charged Dh152.25 for the Dh20,000 transfer. On top of that, their exchange rate margin added a difference of around Dh415, compared with the mid-market rate.

Total cost: Dh567.25 - around 2.9 per cent of the total amount

Total received: €4,670.30 

Route 2: online platform

The UAE bank’s charge for sending Dh20,000 to a UK dirham-denominated account was Dh2.10. The exchange rate margin cost was Dh60, plus a Dh12 fee.

Total cost: Dh74.10, around 0.4 per cent of the transaction

Total received: €4,756

The UAE bank transfer was far quicker – around two to three working days, while the online platform took around four to five days, but was considerably cheaper. In the online platform transfer, the funds were also exposed to currency risk during the period it took for them to arrive.

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%3Cp%3EThe%20Royal%20Navy%20raid%20is%20the%20latest%20in%20a%20series%20of%20successful%20interceptions%20of%20drugs%20and%20arms%20in%20the%20Gulf%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EMay%2011%3A%20%3C%2Fstrong%3EUS%20coastguard%20recovers%20%2480%20million%20heroin%20haul%20from%20fishing%20vessel%20in%20Gulf%20of%20Oman%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EMay%208%3A%3C%2Fstrong%3E%20US%20coastguard%20vessel%20USCGC%20Glen%20Harris%20seizes%20heroin%20and%20meth%20worth%20more%20than%20%2430%20million%20from%20a%20fishing%20boat%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EMarch%202%3A%3C%2Fstrong%3E%20Anti-tank%20guided%20missiles%20and%20missile%20components%20seized%20by%20HMS%20Lancaster%20from%20a%20small%20boat%20travelling%20from%20Iran%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EOctober%209%2C%202022%3A%20%3C%2Fstrong%3ERoyal%20Navy%20frigate%20HMS%20Montrose%20recovers%20drugs%20worth%20%2417.8%20million%20from%20a%20dhow%20in%20Arabian%20Sea%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ESeptember%2027%2C%202022%3A%3C%2Fstrong%3E%20US%20Naval%20Forces%20Central%20Command%20reports%20a%20find%20of%202.4%20tonnes%20of%20heroin%20on%20board%20fishing%20boat%20in%20Gulf%20of%20Oman%C2%A0%3C%2Fp%3E%0A
ABU%20DHABI%20CARD
%3Cp%3E%0D%3Cstrong%3E5pm%3A%3C%2Fstrong%3E%20Al%20Rabi%20Tower%20%E2%80%93%20Maiden%20(PA)%20Dh80%2C000%20(Turf)%201%2C400%0D%3Cbr%3E%3Cstrong%3E5.30pm%3A%3C%2Fstrong%3E%20Wathba%20Stallions%20Cup%20%E2%80%93%20Handicap%20(PA)%20Dh70%2C000%20(T)%201%2C600m%0D%3Cbr%3E%3Cstrong%3E6pm%3A%3C%2Fstrong%3E%20Abu%20Dhabi%20Championship%20%E2%80%93%20Listed%20(PA)%20Dh180%2C000%20(T)%201%2C600m%0D%3Cbr%3E%3Cstrong%3E6.30pm%3A%3C%2Fstrong%3E%20Hili%20Tower%20%E2%80%93%20Handicap%20(PA)%20Dh80%2C000%20(T)%202%2C200m%0D%3Cbr%3E%3Cstrong%3E7pm%3A%20%3C%2Fstrong%3EUAE%20Arabian%20Derby%20%E2%80%93%20Prestige%20(PA)%20Dh150%2C000%20(T)%202%2C200m%0D%3Cbr%3E%3Cstrong%3E7.30pm%3A%3C%2Fstrong%3E%20Abu%20Dhabi%20Championship%20%E2%80%93%20Listed%20(TB)%20Dh380%2C000%20(T)%202%2C200m%3C%2Fp%3E%0A
Classification of skills

A worker is categorised as skilled by the MOHRE based on nine levels given in the International Standard Classification of Occupations (ISCO) issued by the International Labour Organisation. 

A skilled worker would be someone at a professional level (levels 1 – 5) which includes managers, professionals, technicians and associate professionals, clerical support workers, and service and sales workers.

The worker must also have an attested educational certificate higher than secondary or an equivalent certification, and earn a monthly salary of at least Dh4,000. 

Indian construction workers stranded in Ajman with unpaid dues
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%3Cp%3E1984%20-%20Apple%20unveiled%20the%20Macintosh%20on%20January%2024%3Cbr%3E1985%20-%20Steve%20Jobs%20departed%20from%20Apple%20and%20established%20NeXT%3Cbr%3E1986%20-%20Apple%20introduced%20the%20Macintosh%20Plus%2C%20featuring%20enhanced%20memory%3Cbr%3E1987%20-%20Apple%20launched%20the%20Macintosh%20II%2C%20equipped%20with%20colour%20capabilities%3Cbr%3E1989%20-%20The%20widely%20acclaimed%20Macintosh%20SE%2F30%20made%20its%20debut%3Cbr%3E1994%20-%20Apple%20presented%20the%20Power%20Macintosh%3Cbr%3E1996%20-%20The%20Macintosh%20System%20Software%20OS%20underwent%20a%20rebranding%20as%20Mac%20OS%3Cbr%3E2001%20-%20Apple%20introduced%20Mac%20OS%20X%2C%20marrying%20Unix%20stability%20with%20a%20user-friendly%20interface%3Cbr%3E2006%20-%20Apple%20adopted%20Intel%20processors%20in%20MacBook%20Pro%20laptops%3Cbr%3E2008%20-%20Apple%20introduced%20the%20MacBook%20Air%2C%20a%20lightweight%20laptop%3Cbr%3E2012%20-%20Apple%20launched%20the%20MacBook%20Pro%20with%20a%20retina%20display%3Cbr%3E2016%20-%20The%20Mac%20operating%20system%20underwent%20rebranding%20as%20macOS%3Cbr%3E2020%20-%20Apple%20introduced%20the%20M1%20chip%20for%20Macs%2C%20combining%20high%20performance%20and%20energy%20efficiency%3Cbr%3E2022%20-%20The%20M2%20chip%20was%20announced%3Cbr%3E2023%20-The%20M3%20line-up%20of%20chip%20was%20announced%20to%20improve%20performance%20and%20add%20new%20capabilities%20for%20Mac.%3C%2Fp%3E%0A
MATCH INFO

Uefa Champions League, last 16, first leg

Tottenham Hotspur v Borussia Dortmund, midnight (Thursday), BeIN Sports

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How to avoid crypto fraud
  • Use unique usernames and passwords while enabling multi-factor authentication.
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%3Cp%3E%0D%3Cstrong%3EEngine%3A%20%3C%2Fstrong%3E6-cylinder%2C%204.8-litre%20%0D%3Cbr%3E%3Cstrong%3ETransmission%3A%20%3C%2Fstrong%3E5-speed%20automatic%20and%20manual%0D%3Cbr%3E%3Cstrong%3EPower%3A%20%3C%2Fstrong%3E280%20brake%20horsepower%20%0D%3Cbr%3E%3Cstrong%3ETorque%3A%20%3C%2Fstrong%3E451Nm%20%0D%3Cbr%3E%3Cstrong%3EPrice%3A%20%3C%2Fstrong%3Efrom%20Dh153%2C00%0D%3Cbr%3E%3Cstrong%3EOn%20sale%3A%20%3C%2Fstrong%3Enow%3C%2Fp%3E%0A
Company profile

Date started: 2015

Founder: John Tsioris and Ioanna Angelidaki

Based: Dubai

Sector: Online grocery delivery

Staff: 200

Funding: Undisclosed, but investors include the Jabbar Internet Group and Venture Friends

The biog

Favourite food: Tabbouleh, greek salad and sushi

Favourite TV show: That 70s Show

Favourite animal: Ferrets, they are smart, sensitive, playful and loving

Favourite holiday destination: Seychelles, my resolution for 2020 is to visit as many spiritual retreats and animal shelters across the world as I can

Name of first pet: Eddy, a Persian cat that showed up at our home

Favourite dog breed: I love them all - if I had to pick Yorkshire terrier for small dogs and St Bernard's for big

Virtuzone GCC Sixes

Date and venue Friday and Saturday, ICC Academy, Dubai Sports City

Time Matches start at 9am

Groups

A Blighty Ducks, Darjeeling Colts, Darjeeling Social, Dubai Wombats; B Darjeeling Veterans, Kuwait Casuals, Loose Cannons, Savannah Lions; Awali Taverners, Darjeeling, Dromedary, Darjeeling Good Eggs

UAE squad to face Ireland

Ahmed Raza (captain), Chirag Suri (vice-captain), Rohan Mustafa, Mohammed Usman, Mohammed Boota, Zahoor Khan, Junaid Siddique, Waheed Ahmad, Zawar Farid, CP Rizwaan, Aryan Lakra, Karthik Meiyappan, Alishan Sharafu, Basil Hameed, Kashif Daud, Adithya Shetty, Vriitya Aravind

PROFILE OF STARZPLAY

Date started: 2014

Founders: Maaz Sheikh, Danny Bates

Based: Dubai, UAE

Sector: Entertainment/Streaming Video On Demand

Number of employees: 125

Investors/Investment amount: $125 million. Major investors include Starz/Lionsgate, State Street, SEQ and Delta Partners

Updated: June 26, 2024, 3:12 PM