Why are the Kenyan Youths protesting?

Over the last few weeks, Kenyan youths have actively protested against the proposed Financial Bill 2024. These protests are not only a demonstration of civic engagement but also a cry for help from a nation grappling with corruption, nepotism, embezzlement, and unmet performance indicators. Remember the BETA – Kenya Kwanza’s Economic Blueprint? It promised economic transformation, yet the reality has been starkly different. This bill, if passed, could further cripple Kenya’s economic stability and social wellbeing.

The Burden of Corruption

Kenya’s Corruption Perception Index is alarmingly low at 30/100, placing it 126th out of 180 countries globally . According to the Ethics and Anti-Corruption Commission, Kenya loses an estimated KSh. 608 billion ($4.7 billion), approximately 7.8% of its GDP, to corruption annually. The true figure might be closer to 10% of GDP, considering the pervasive nature of corruption across various sectors.

The Financial Bill 2024

Despite this staggering loss to corruption, the Financial Bill 2024 proposes increased taxes. Here’s a closer look at its potential impacts:

Increased Taxation

Higher taxes will significantly raise the cost of living, pushing more families into poverty. For instance, the proposed tax on non-resident digital service providers and the redefinition of digital marketplaces aim to capture revenue from the growing digital economy. However, this could stifle innovation and increase costs for consumers and businesses alike​(finance-bill-2024)​.

Agricultural Strain

The agricultural sector, a backbone of Kenya’s economy, faces increased costs for farm inputs. While some inputs are exempt from VAT under the bill, many essential materials will still see price hikes. This will reduce agricultural productivity and exacerbate food insecurity, a pressing issue in a country already battling malnutrition​(finance-bill-2024)​.

Healthcare Crisis

Healthcare funding remains critically low, with misallocation of resources leading to underfunded essential health services and nutrition programs. The triple burden of malnutrition – undernutrition, micronutrient deficiencies, and overnutrition – continues to plague Kenya. Increasing taxes without addressing corruption diverts necessary funds from these critical areas, worsening public health outcomes​(finance-bill-2024)​.

A Vicious Cycle

The president’s plan to increase taxes to between 15-20% of GDP nearly doubles the amount lost to corruption each year. According to the Kenyan Treasury, if these tax measures are dropped, there will be a $1.6 billion deficit. However, this shortfall is just one-third of what is lost annually to corruption. Strengthening anti-corruption measures could save half of this, negating the need for these tax hikes and ensuring more funds are available for development and public services​(finance-bill-2024)​.

The Path Forward

Kenya’s current economic climate necessitates a robust fight against corruption. By improving transparency and accountability, the government can save substantial amounts of money, reduce the need for higher taxes, and ensure funds are effectively used to improve public services, including health and nutrition programs.

Conclusion

The protests by Kenyan youths highlight a critical issue: the detrimental impact of corruption on Kenya’s economic and social fabric. As a nation, we must advocate for stronger anti-corruption measures and ensure that any new financial policies truly benefit all citizens. Only then can we hope to break the cycle of poverty and malnutrition that holds Kenya back.

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