By Adekunle Adekoya
Earlier in the week, there were reports of massive protests in Kenya, an East African country. The protests were actually not new, having begun in 2023, in reaction to bids by the government of Kenya to raise taxes. According to the 24-hour English news channel, Al Jazeera, the protests signify a major shift in Kenya, where, previously, most people accepted the inadequacies of government.
I dare say in that regard, Kenyans are like Nigerians as my people also swallow, lock, stock, and barrel, all the balderdash that goes on here in the name of governance. It is instructive to recall that both Nigeria and Kenya were colonised by the British. Kenya gained independence in 1963.
According to reports, the
planned tax increases were criticized by younger Kenyans. They mobilized
online, using social media platforms and circulated calls to action. In
addition, the Kenyan Finance Bill was translated into several local
languages, while the phone numbers of political leaders were circulated and
people urged to swamp them with SMS and WhatsApp indicating their
displeasure with the bill.
Peaceful protests began on 18 June in Nairobi, the capital, leading to
arrests. On 19 June, the Kenyan Parliament amended the bill, removing some
clauses, but subsequently passed the bill the following day. Passage of the
bill triggered further protests and heavy clashes with security forces. Last
Wednesday, 26 June, protesters stormed the Parliament buildings, leading to
clashes with police that resulted in at least 22 deaths with many more injured,
while the parliament building was set on fire.
In reaction, Kenyan President
William Ruto addressed the nation and declared that he will not sign the 2024
Finance Bill, adding that it will be withdrawn and that he had come to an
agreement with the MPs of his party for that to be their collective position.
The capitulation of President
William Ruto, in alignment with the wishes of his people is a commendable
development, especially as it seems that the Kenyan Finance Bill, which aimed
to increase taxes was inspired by external forces.
According to reports, the 2024
Finance Bill is the first in a series of tax reforms based on a Medium-Term
Revenue Strategy (MTRS) devised and published by the Kenyan government in 2023
through the Ministry of National Treasury and Economic Planning. The MTRS
aspired to increase the tax-to-GDP ratio in Kenya from 13.5% to at least 20%
from 2024 to 2027. The figures from the MTRS are based on an International
Monetary Fund, IMF estimate that Kenya has a potential of 25% tax-to-GDP ratio.
Some of the suggestion of the MTRS are what informed the details of the Finance
Bill 2024 including an annual circulation tax for all motor-vehicles and review
of excise duty on petroleum products.
Thus, the Kenyan government might
have been working on a script written by the IMF, and barely avoided setting
its country on fire by seeking to implement it through the force of law, if
enacted by the parliament.
As things stand in our country
today, a question begging for answer is whether policy initiatives that are not
working, or are inflicting hardship on Nigerians cannot be revisited or
reviewed. The unprecedented high cost of food items, particularly in recent
weeks is still part of the rolling effect of the precipitate, unplanned removal
of subsidy on petrol. The president and his cabinet have had at least one year
to observe and assess the impact of the declaration that “subsidy is gone.”
Does Mr President like what he is seeing? Is he seeing what we are seeing? Is
he, and indeed, governors, senators, ministers, and other people of privilege
seeing what we are seeing? Are they feeling what we are feeling?
Do they know what it means to be
in a state of permanent anxiety, wondering where the next N1,000 will come
from? Do they know that we are in a state of suspended animation, while they
continue to parrot a renewed hope agenda? This takes me to the issue of minimum
wage again. Assuming without conceding that workers get N250,000 as minimum
wage, it will be of no benefit as the Nigerian market place is certain to react
viciously in a way that will take inflation to levels never seen before in this
country, or any other one, for that matter.
As such, I think it will be
better for the Labour movement to direct agitation energy towards making the
economy work for all of us in a way that the Naira will regain its value when
the purchasing power of the average worker would have been boosted. For the
political leaders, starting with Mr. President, there is nothing bad in
reviewing a policy that is not working, or is inflicting hardship on the
people. Like Ruto in Kenya, admit your error, re-strategise and take immediate,
concrete action to take Nigerians out of unending misery. That is more
statesman-like, and will renew greater hope than what we have now.
*Adekoya
is a commentator on public issues
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