On Tuesday, June 25, thousands of people took to the streets of Nairobi, Kenya's capital, for a youth-led protest against the controversial finance bill recently passed by the Kenyan Parliament.
What began as a demonstration of the legitimate discontent of Kenyans over the planned widespread tax increases introduced by the bill soon saw the Kenya Defense Forces (KDF) call for the following President Ruto's address to the nation on the need to restore "normalcy" amid what he described as According to the Kenya department of Amnesty International, "violence and anarchy" have left more than 300 people injured and at least 20 people killed due to shootings involving police.
Amid the chaos, BitcoinBitcoin -1.3% awareness among young people is also increasing. As Kenyan Bitcoiner and Machankura team member Noelyne Sumba puts it, “The decentralized nature of Bitcoin offers a level of financial freedom that is becoming increasingly attractive to Kenyan youth.”
Kenya's controversial finance bill 2024
Currently, Kenya's public debt is 68% of GDP, higher than the 55% recommendation of the IMF and World Bank. As part of a series of reforms and strategies to align with the financial reforms agreed with the IMF in 2021 to significantly reduce Kenya's dependence on borrowing, the Kenyan government has been increasing tax rates and levies. The most ambitious effort was formalized in the now infamous Finance Bill 2024/25.
The bill, first proposed in May this year, aims to raise about $2.3 billion in revenue to help cover the country's budget deficit. In addition, in addition to reducing the budget deficit by increasing revenue, the bill also aims to cut government spending.
Furthermore, the bill has introduced a variety of proposed taxes ranging from 1.5% digital on local online platforms whose services include employment, rental, food delivery and ride-hailing ( although subject to parliamentary approval), value added tax (VAT) on electric bicycles, buses, solar panels and lithium-ion batteries, applying a 16% VAT rate on regular bread Typically, sugarcane transportation, financial services and foreign exchange transactions.
On June 13, young Kenyans began organizing on social media to make their voices heard under the hashtag #RejectFinanceBill2024, initially on TikTok and then on X (the platform formerly known as Twitter). An attempt to get parliament to vote No on the bill was deemed ineffective, and the strategy quickly turned to taking to the streets in a planned peaceful protest for 18 June.
According to Noelyne, following an interview with Bitcoin Magazine , "The passage of the Finance Bill is likely to reduce the already low standard of living of 56 million Kenyan citizens. This bill continues the trend of capitalizing on the future of This continued borrowing by the country's irresponsible government has resulted in a debt-to-GDP ratio of 67% as of 2023, which will continue to have a significant impact on stability and growth. economic growth."
Besides the tariffs proposed in the bill, there are larger precedents this bill would set; as Noelyne highlights, "The government is threatening privacy and data security by proposing the Kenya Revenue Authority (KRA) access personal data without consent." Adding “This move has the potential to lead to the profiling and misuse of personal information by authoritarian governments.”
Protests and passage of the bill by the Kenyan Parliament
Following a largely peaceful protest on June 18, Kenyan police arrested more than 230 protesters, who were later released following youth-led pressure on social media. On June 19, the Kenyan parliament's budget committee decided to repeal some of the bill's controversial amendments, such as the 16% VAT on bread. However, many Kenyans find this not enough.
On June 20, the bill passed second reading in the Kenyan parliament by a vote of 204-115, further fueling the protests that had previously begun before the vote. The protests peaked on June 20 when protesters stormed the Kenyan parliament building, with further escalation after part of the building was set on fire, including intense gunfire by police in an effort to control the crowd. On June 26, according to the Kenya Medical Association, more than 13 people had died the previous day.
Despite these reports and the nationwide internet shutdown that occurred earlier today, protesters are unmoved by this and continue to speak out.
These efforts have finally paid off, as at 7pm local Kenya time today, President Ruto acknowledged the voice of the people in a speech, declaring that he would not sign the Bill Fiscal 2024 as people said.
Bitcoin is a hope for Kenya and its youth
As Noelyne emphasized when asked about what young people believe is Bitcoin's role in all of this, “Many young Kenyans see Bitcoin as a way to escape the restrictive monetary policies imposed by financial institutions. imposed by international governments, which have contributed to the country's economic challenges.”, adding that “Integrating Bitcoin into the financial system could reduce dependence on foreign debt and provide a way to freedom from oppressive government policies that hinder economic and personal growth.”
It is important to note that Bitcoin brings economic freedom to both individuals and countries. To this end, many African Bitcoin users believe that African countries can only escape their decades-long economic bondage by realizing this and taking Bitcoin more seriously.
With Kenya already making strides in developing renewable energy through bitcoin mining , it is only a matter of time before governments across Africa realize that Bitcoin can significantly alleviate many challenges economics and infrastructure and is a more viable alternative to their current approaches.
