Kenyan President William Ruto announced new borrowing plans and spending cuts after scrapping contentious tax hikes following protests that left 39 people dead.
The East African nation faced turmoil after peaceful rallies over steep tax increases escalated into violence, with police firing at crowds who stormed parliament, partially setting it ablaze.
Primarily led by Gen-Z Kenyans, the protests reflected broader anger against an annual finance bill, which Ruto abandoned while warning of a significant funding shortfall.
Ruto proposed a budget cut of 177 billion shillings and borrowing of 169 billion to cover the deficit.
Public debt stands at around 10 trillion shillings, about 70% of Kenya’s GDP.
The fiscal deficit would rise from 3.3% to 4.6% to fund services like hiring secondary school teachers and medical interns, and supporting a milk stabilization and fertilizer program for farmers.
