Last Wednesday, Kenyan President William Ruto announced that he won’t sign into law a finance bill proposing new taxes. He made this decision a day after nationwide protests rocked the nation, as demonstrators stormed Parliament and at least 20 people were shot dead by security forces.
Why did the bill, which sought to raise funds to pay off the national debt, cause such an uproar? The primary reason, according to the protesters, was that it would place even greater economic hardship on an already struggling populace.
While that is certainly true, the ferocity of these demonstrations had much to do with how Mr Ruto and his colleagues in government have conducted themselves over the past two years. The President’s glamorous lifestyle has especially been an object of public indignation at a time when many families have struggled to put food on the table.
Last month, Mr Ruto was criticised for hiring a private jet on a visit to the US, with media reports alleging he had paid $1.5 million for it. He insisted the charter was paid for by “friends” and cost taxpayers less than $73,000, but to no avail.
On the issue of luxury, Mr Ruto has not been alone. Several of his cabinet colleagues and other officials have adopted his safari-style outfits with collarless jackets, designer watches and shoes. Recently, a close ally of the President, who was in court over questionable academic papers, donated $155,000 to a church fundraiser.
When the East African nation erupted into chaos, in response to the proposed tax hikes, it was such extravagance that fuelled the anger.
The Finance Bill 2024, a piece of legislation that intended to raise $2.7 billion in new levies to finance several social programmes, was a major point of contention. The squeezing of more taxes from the public is in line with fiscal reforms agreed with the International Monetary Fund, which wants Nairobi to slow down on international borrowing and raise money through taxation.
Kenya owes $80 billion in domestic and foreign public debt, accounting for almost 75 per cent of the nation’s entire economic output.
To make matters worse, Mr Ruto has been unable to cut government waste. In the now-withdrawn budget, for example, $12 million had been earmarked to furnish the President’s official residence.
Two years ago, Mr Ruto was the darling of the poor. He ran for president on a poor man’s ticket, telling his supporters that he once sold chicken to earn a living. In contrast, his opponent, Raila Odinga, was the son of Kenya’s first vice president, Jaramogi Odinga, and was backed by then president Uhuru Kenyatta, the son of Kenya’s first president, Jomo Kenyatta.
Mr Ruto positioned himself to the electorate as a Christian and a “prayerful” presidential candidate, and it worked. His supporters regarded his victory as a triumph over the entrenched political dynasties that the Kenyattas and Odingas have come to represent. Today, however, some of the churches that backed Mr Ruto have turned against him.
On the global stage, the President has always spoken with authority and is much liked in the West. When the US designated the East African nation as a non-Nato ally – as US President Joe Biden hosted Mr Ruto at the White House – it was not lost on observers that he was the first African leader in more than 15 years to make a state visit to the US.
But such achievements have meant little to ordinary Kenyans, many of whom take a dim view of Mr Ruto’s frequent travels abroad. By June, he had made 62 trips to 38 countries. According to the auditor general, in the financial year ending June 2023, his travel budget had stood at $10 million.
The punitive tax measures contained in the finance bill, it seems, represented the final straw. They led to the uprising by the youth, which makes up about 35 per cent of the Kenya’s population and bears the brunt of any economic austerity measures.
The skirmishes caught the National Intelligence Service by surprise, according to Deputy President Rigathi Gachagua. The demography, a mixture of young men and women daring the police and broadcasting their moves on social media, also surprised mainstream media outlets. At first, Mr Ruto regarded the protests as “treasonous” and its participants as “criminals”, before backing down.
During his election campaign, Mr Ruto had promised decent jobs to the youth. But as the debt burden continues to consume nearly a quarter of the government’s revenue in interest payments alone, most of these promises have waned. Recently, Mr Ruto was forced to use a World Bank loan to pay off a $500 million Eurobond, an indicator of the dire financial straits that the nation faces.
Another source of public anger has been the President’s inability to tame corruption. After taking office, his government stopped the high-level corruption cases that had been initiated by Mr Kenyatta. Mr Ruto said the cases had been politically instigated, but critics argue that by stopping these cases he had created new spaces of impunity within the government.
It’s important to point out that Kenya’s troubles did not start under the Ruto administration. The root of the debt problem goes back to the early 2000s, when the government borrowed heavily from international creditors to fund SMEs and finance infrastructure and agricultural projects. The failure to invest these loans judiciously has proved costly, as have a series of natural disasters, including the Covid-19 pandemic.
But Mr Ruto’s inability to deliver on promises of turning around the economy has made him the target of public ire. During the protests, one banner read: “When he is not flying, he is lying.” It is a sentiment that sums up how some Kenyans feel about the President today. And by withdrawing the contentious legislation, he has revealed his Achilles heel.
In a country where politics is organised along tribal lines, the protests will be a wake-up call to Mr Ruto to reorganise his politics – particularly having won the presidency with a slim majority of 300,000 votes – if he wants to secure re-election in 2027.
He will have his work cut out for him. The recent legislation has made him so unpopular that many Kenyans now call him “Zakayo” – the Swahili name for the Biblical tax collector Zacchaeus. The talk in Nairobi now is that all politicians who voted for the bill would be punished at the ballot box in three years’ time.
More broadly, the protests mark an important turning point in Kenyan politics, with a chastened executive now well aware of the limits of trying to bulldoze laws through Parliament.
The specs
Engine: 4.0-litre V8 twin-turbocharged and three electric motors
Power: Combined output 920hp
Torque: 730Nm at 4,000-7,000rpm
Transmission: 8-speed dual-clutch automatic
Fuel consumption: 11.2L/100km
On sale: Now, deliveries expected later in 2025
Price: expected to start at Dh1,432,000
COMPANY%20PROFILE
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Company%20profile
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Infiniti QX80 specs
Engine: twin-turbocharged 3.5-liter V6
Power: 450hp
Torque: 700Nm
Price: From Dh450,000, Autograph model from Dh510,000
Available: Now
How to keep control of your emotions
If your investment decisions are being dictated by emotions such as fear, greed, hope, frustration and boredom, it is time for a rethink, Chris Beauchamp, chief market analyst at online trading platform IG, says.
Greed
Greedy investors trade beyond their means, open more positions than usual or hold on to positions too long to chase an even greater gain. “All too often, they incur a heavy loss and may even wipe out the profit already made.
Tip: Ignore the short-term hype, noise and froth and invest for the long-term plan, based on sound fundamentals.
Fear
The risk of making a loss can cloud decision-making. “This can cause you to close out a position too early, or miss out on a profit by being too afraid to open a trade,” he says.
Tip: Start with a plan, and stick to it. For added security, consider placing stops to reduce any losses and limits to lock in profits.
Hope
While all traders need hope to start trading, excessive optimism can backfire. Too many traders hold on to a losing trade because they believe that it will reverse its trend and become profitable.
Tip: Set realistic goals. Be happy with what you have earned, rather than frustrated by what you could have earned.
Frustration
Traders can get annoyed when the markets have behaved in unexpected ways and generates losses or fails to deliver anticipated gains.
Tip: Accept in advance that asset price movements are completely unpredictable and you will suffer losses at some point. These can be managed, say, by attaching stops and limits to your trades.
Boredom
Too many investors buy and sell because they want something to do. They are trading as entertainment, rather than in the hope of making money. As well as making bad decisions, the extra dealing charges eat into returns.
Tip: Open an online demo account and get your thrills without risking real money.
AL%20BOOM
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Day 4, Dubai Test: At a glance
Moment of the day Lahiru Gamage appeared to have been hard done by when he had his dismissal of Sami Aslam chalked off for a no-ball. Replays suggested he had not overstepped. No matter. Two balls later, the exact same combination – Gamage the bowler and Kusal Mendis at second slip – combined again to send Aslam back.
Stat of the day Haris Sohail took three wickets for one run in the only over he bowled, to end the Sri Lanka second innings in a hurry. That was as many as he had managed in total in his 10-year, 58-match first-class career to date. It was also the first time a bowler had taken three wickets having bowled just one over in an innings in Tests.
The verdict Just 119 more and with five wickets remaining seems like a perfectly attainable target for Pakistan. Factor in the fact the pitch is worn, is turning prodigiously, and that Sri Lanka’s seam bowlers have also been finding the strip to their liking, it is apparent the task is still a tough one. Still, though, thanks to Asad Shafiq and Sarfraz Ahmed, it is possible.
Dolittle
Director: Stephen Gaghan
Stars: Robert Downey Jr, Michael Sheen
One-and-a-half out of five stars
The%20specs
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Mountain%20Boy
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Chef Nobu's advice for eating sushi
“One mistake people always make is adding extra wasabi. There is no need for this, because it should already be there between the rice and the fish.
“When eating nigiri, you must dip the fish – not the rice – in soy sauce, otherwise the rice will collapse. Also, don’t use too much soy sauce or it will make you thirsty. For sushi rolls, dip a little of the rice-covered roll lightly in soy sauce and eat in one bite.
“Chopsticks are acceptable, but really, I recommend using your fingers for sushi. Do use chopsticks for sashimi, though.
“The ginger should be eaten separately as a palette cleanser and used to clear the mouth when switching between different pieces of fish.”
Company%20profile
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Four motivational quotes from Alicia's Dubai talk
“The only thing we need is to know that we have faith. Faith and hope in our own dreams. The belief that, when we keep going we’re going to find our way. That’s all we got.”
“Sometimes we try so hard to keep things inside. We try so hard to pretend it’s not really bothering us. In some ways, that hurts us more. You don’t realise how dishonest you are with yourself sometimes, but I realised that if I spoke it, I could let it go.”
“One good thing is to know you’re not the only one going through it. You’re not the only one trying to find your way, trying to find yourself, trying to find amazing energy, trying to find a light. Show all of yourself. Show every nuance. All of your magic. All of your colours. Be true to that. You can be unafraid.”
“It’s time to stop holding back. It’s time to do it on your terms. It’s time to shine in the most unbelievable way. It’s time to let go of negativity and find your tribe, find those people that lift you up, because everybody else is just in your way.”
COMPANY%20PROFILE
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COMPANY PROFILE
Name: Kumulus Water
Started: 2021
Founders: Iheb Triki and Mohamed Ali Abid
Based: Tunisia
Sector: Water technology
Number of staff: 22
Investment raised: $4 million
The%20specs
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More from Neighbourhood Watch:
Who was Alfred Nobel?
The Nobel Prize was created by wealthy Swedish chemist and entrepreneur Alfred Nobel.
- In his will he dictated that the bulk of his estate should be used to fund "prizes to those who, during the preceding year, have conferred the greatest benefit to humankind".
- Nobel is best known as the inventor of dynamite, but also wrote poetry and drama and could speak Russian, French, English and German by the age of 17. The five original prize categories reflect the interests closest to his heart.
- Nobel died in 1896 but it took until 1901, following a legal battle over his will, before the first prizes were awarded.
RESULTS
6pm: Al Maktoum Challenge Round-2 – Group 1 (PA) $55,000 (Dirt) 1,900m
Winner: Rajeh, Antonio Fresu (jockey), Musabah Al Muhairi (trainer)
6.35pm: Oud Metha Stakes – Rated Conditions (TB) $60,000 (D) 1,200m
Winner: Get Back Goldie, William Buick, Doug O’Neill
7.10pm: Jumeirah Classic – Listed (TB) $150,000 (Turf) 1,600m
Winner: Sovereign Prince, James Doyle, Charlie Appleby
7.45pm: Firebreak Stakes – Group 3 (TB) $150,000 (D) 1,600m
Winner: Hypothetical, Mickael Barzalona, Salem bin Ghadayer
8.20pm: Al Maktoum Challenge Round-2 – Group 2 (TB) $350,000 (D) 1,900m
Winner: Hot Rod Charlie, William Buick, Doug O’Neill
8.55pm: Al Bastakiya Trial – Conditions (TB) $60,000 (D) 1,900m
Winner: Withering, Adrie de Vries, Fawzi Nass
9.30pm: Balanchine – Group 2 (TB) $180,000 (T) 1,800m
Winner: Creative Flair, William Buick, Charlie Appleby