<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="523" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/G5RU4II5WFP75F4POZ2VUFIWME-820x523.jpg" alt="" class="wp-image-505609" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/G5RU4II5WFP75F4POZ2VUFIWME-820x523.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/G5RU4II5WFP75F4POZ2VUFIWME-300x191.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/G5RU4II5WFP75F4POZ2VUFIWME-141x90.jpg 141w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/G5RU4II5WFP75F4POZ2VUFIWME-768x490.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/G5RU4II5WFP75F4POZ2VUFIWME-1536x980.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/G5RU4II5WFP75F4POZ2VUFIWME-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A general view shows the central business district in downtown Nairobi, Kenya February 18, 2022. REUTERS/Thomas Mukoya</figcaption></figure>



July 8 (Reuters)&nbsp;&#8211;&nbsp;Moody&#8217;s cut Kenya&#8217;s sovereign rating deeper into junk territory on Monday, citing diminished capacity to implement a fiscal consolidation strategy to contain its debt burden.



The credit ratings agency downgraded the country&#8217;s local- and foreign-currency long-term issuer ratings and foreign-currency senior unsecured debt ratings to &#8220;Caa1&#8221; from &#8220;B3&#8221;.



In June, Kenyan President Willian Ruto withdrew planned tax hikes in response to mass protests that turned deadly, killing at least 24 people.



The scrapped finance bill contained measures intended to aid the government&#8217;s aim to raise $2.7 billion in additional taxes to reduce budget deficit and state borrowing.



In order to compensate for the withdrawn finance bill, Ruto&#8217;s administration has proposed cuts in spending.



Moody&#8217;s said that while the spending cuts should narrow fiscal deficit, it would be at a more gradual pace than previously assumed, and as a result expect Kenya&#8217;s debt affordability to remain weaker for longer.



&#8220;In the context of heightened social tensions, we do not expect the government to be able to introduce significant revenue-raising measures in the foreseeable future,&#8221; the ratings agency said.



Moody&#8217;s affirmed its &#8216;negative&#8217; outlook for Kenya, stating that the larger fiscal deficits will push up borrowing requirements and subsequently increase government liquidity risks.



(Reporting by Raechel Thankam Job; Editing by Maju Samuel)

General view of the central business district in Nairobi

Moody’s pushes Kenya’s rating deeper into junk

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/02/GettyImages-924883576-1-820x547.jpg" alt="" class="wp-image-422955" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/02/GettyImages-924883576-1-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/02/GettyImages-924883576-1-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/02/GettyImages-924883576-1-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/02/GettyImages-924883576-1-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/02/GettyImages-924883576-1-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/02/GettyImages-924883576-1-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Uganda shillings. Uganda. (Photo by: Godong/Universal Images Group via Getty Images)</figcaption></figure>



KAMPALA, July 8 (Reuters) &#8211; The Ugandan shilling weakened on Monday due to increased demand for dollars from commercial banks and merchandise importers, traders said.



At 0905 GMT, commercial banks quoted the shilling at 3,705/3,715 per dollar, compared with Friday&#8217;s closing rate of 3,693/3,703.



(Reporting by Elias Biryabarema; Editing by George Obulutsa)

GettyImages-924883576-1

Ugandan shilling weakens on increased FX demand from banks, importers

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/07/GettyImages-880072092-820x547.jpg" alt="" class="wp-image-409717" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/07/GettyImages-880072092-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2021/07/GettyImages-880072092-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/07/GettyImages-880072092-120x80.jpg 120w, https://cms.cnbcafrica.com/wp-content/uploads/2021/07/GettyImages-880072092-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2021/07/GettyImages-880072092-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2021/07/GettyImages-880072092-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Kenyan shilling banknotes and coins sit arranged at a market stall in Mombasa, Kenya, on Thursday, Nov. 23, 2017. The countrys Treasury has already cut this years growth target to 5 percent from 5.9 percent as the protracted election furor damped investment and a drought curbed farm output. Photographer: Luis Tato/Bloomberg via Getty Images</figcaption></figure>



NAIROBI, July 8 (Reuters) &#8211; Kenya&#8217;s shilling was steady on Monday, but it was expected to gain ground in the next few days due to increased dollar inflows from tea exporters, traders said.



At 0752 GMT, commercial banks quoted the shilling at 127.75/128.75 per dollar, the same as Friday&#8217;s closing rate.



(Reporting by George Obulutsa; Editing by Alexander Winning)

General Economy As Kenya Faces Bleak 2018 Outlook In Vote Aftermath

Kenya’s shilling stable, seen firming due to tea export FX inflows

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="546" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/108002009-17201812992024-07-05t115950z_1558437106_rc2zo8ashg9w_rtrmadp_0_britain-election-820x546.jpeg" alt="" class="wp-image-505243" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/108002009-17201812992024-07-05t115950z_1558437106_rc2zo8ashg9w_rtrmadp_0_britain-election-820x546.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/108002009-17201812992024-07-05t115950z_1558437106_rc2zo8ashg9w_rtrmadp_0_britain-election-300x200.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/108002009-17201812992024-07-05t115950z_1558437106_rc2zo8ashg9w_rtrmadp_0_britain-election-135x90.jpeg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/108002009-17201812992024-07-05t115950z_1558437106_rc2zo8ashg9w_rtrmadp_0_britain-election-768x512.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/108002009-17201812992024-07-05t115950z_1558437106_rc2zo8ashg9w_rtrmadp_0_britain-election-1536x1024.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/108002009-17201812992024-07-05t115950z_1558437106_rc2zo8ashg9w_rtrmadp_0_britain-election-scaled.jpeg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">British Prime Minister Keir Starmer delivers his speech outside Downing Street 10, following the results of the election, in London, Britain, July 5, 2024.  Claudia Greco | Reuters</figcaption></figure>



Britain’s new Prime Minister Keir Starmer said on Saturday he would scrap a controversial plan to fly thousands of asylum seekers from Britain to Rwanda in his first major policy announcement since winning a landslide election victory.



The previous Conservative government first announced the plan in 2022 to send migrants who arrived in Britain without permission to the East African nation, saying it would put an end to asylum seekers arriving on small boats.



But no one was sent to Rwanda under the plan because of years of legal challenges.



At his first press conference since becoming prime minister, Starmer said that the Rwanda policy would be scrapped because only about 1% of asylum seekers would have been removed and it would have failed to act as a deterrent.



“The Rwanda scheme was dead and buried before it started. It’s never been a deterrent,” Starmer said. “I’m not prepared to continue with gimmicks that don’t act as a deterrent.”



Starmer won one of the largest parliamentary majorities in modern British history on Friday, making him the most powerful British leader since former Prime Minister Tony Blair, but he faces a number of challenges, including improving struggling public services and reviving a weak economy.



At the press conference in Downing Street, Starmer answered about a dozen questions and was repeatedly asked about how and when he would start delivering on his promises to fix the nation’s problems, but he gave few specifics about what he planned.



Asked if he was willing to take tough decisions and raise taxes if necessary, Starmer said his government would identify problems and act in areas such as tackling an overstretched prisons system and reducing the long waiting times to use the state-run health service.



“We’re going to have to take the tough decisions and take them early, and we will. We will do that with a raw honesty,” he said. “But that is not a sort of prelude to saying there’s some tax decision that we didn’t speak about before.”



Starmer said he would set up and chair different “mission delivery boards” to focus on so-called missions or priority areas such as the health service and economic growth.



<h2 class="wp-block-heading" id="h-election-issue"><a></a>Election issue</h2>



The question of how to stop the asylum seekers crossing from France was a major theme of the six-week election campaign.



While supporters say it would smash the model of people traffickers, critics have argued the Rwanda policy was immoral and would never work.



Last November, the UK Supreme Court declared the policy unlawful, saying Rwanda could not be considered a safe third country, prompting ministers to sign a new treaty with the East African country and to pass new legislation to override this.



The legality of that move was being challenged by charities and unions in the courts.



The British government has already given the Rwandan government hundreds of millions of pounds to set up accommodation and hire extra officials to process the asylum seekers, money it cannot recover.



Starmer has said his government would create a Border Security Command that would bring together staff from the police, the domestic intelligence agency and prosecutors to work with international agencies to stop people smuggling.



Sonya Sceats, CEO of Freedom from Torture, one of the many organizations and charities which have campaigned to stop the Rwanda plan, welcomed Starmer’s announcement on Saturday.



“We applaud Keir Starmer for moving immediately to close the door on this shameful scheme that played politics with the lives of people fleeting torture and persecution,” she said.

108002009-17201812992024-07-05t115950z_1558437106_rc2zo8ashg9w_rtrmadp_0_britain-election

New UK leader Starmer declares Rwanda deportation plan ‘dead and buried’

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/VSUW65W5UVNKFHEP6AGCDDWLWI-820x547.jpg" alt="" class="wp-image-504288" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/VSUW65W5UVNKFHEP6AGCDDWLWI-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/VSUW65W5UVNKFHEP6AGCDDWLWI-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/VSUW65W5UVNKFHEP6AGCDDWLWI-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/VSUW65W5UVNKFHEP6AGCDDWLWI-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/VSUW65W5UVNKFHEP6AGCDDWLWI-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/VSUW65W5UVNKFHEP6AGCDDWLWI-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Kenya&#8217;s President William Ruto attends a joint press conference with Iran&#8217;s President Ebrahim Raisi at the State House in Nairobi, Kenya, July 12, 2023. Iran&#8217;s Presidency/WANA (West Asia News Agency)/Handout via REUTERS</figcaption></figure>



NAIROBI, July 5 (Reuters)&nbsp;&#8211;&nbsp;Kenyan President William Ruto on Friday pledged spending cuts totalling 177 billion shillings ($1.39 billion) in the fiscal year that started in July, after weeks of nationwide protests that forced him to scrap planned tax hikes.



The government will also increase borrowing by about 169 billion shillings to cover the 346 billion shilling hole created by the decision to withdraw the finance bill that was the original spark for the protests.



The demonstrations, which started peacefully before turning violent, have become the biggest threat to Ruto&#8217;s two-year-old presidency. Campaign groups have documented hundreds of arrests and at least 39 deaths linked to the government&#8217;s heavy-handed response, raising fears of rights backsliding.



Ruto said in a televised address to the nation that Kenya&#8217;s budget deficit was now projected at 4.6% of gross domestic product in the 2024/25 financial year, up from an earlier estimate of 3.3%.



Among ways his government will cut spending, Ruto said 47 state corporations would be dissolved, the number of advisors in government would be reduced by 50% immediately, and all non-essential travel by public office bearers would be suspended.



&#8220;Budget lines providing for the operations of the Office of the First Lady, the spouse of the Deputy President, and the Prime Cabinet Secretary, will be removed,&#8221; Ruto said, adding that public servants at retirement age of 60, shall be required to immediately retire.



He said there would be a forensic audit of the country&#8217;s debt and that he would also announce government changes soon.



($1 = 127.7500 Kenyan shillings)



(Reporting by George Obulutsa and Bhargav Acharya; Writing by Alexander Winning; Editing by Bate Felix)

Iran’s President Raisi visits Kenya

Kenya’s Ruto pledges spending cuts after nationwide protests

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-2159782737-820x547.jpg" alt="" class="wp-image-504193" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-2159782737-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-2159782737-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-2159782737-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-2159782737-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-2159782737-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-2159782737-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">NAIROBI, KENYA &#8211; JULY 02: Demonstrators, gathering in the city center, make a fire as they march towards the parliament building to protest the &#8216;Finance Bill 2024&#8217;, which envisages tax regulation in Nairobi, Kenya on July 02, 2024. Kenyan forces intervened against the protesters. (Photo by Gerald Anderson/Anadolu via Getty Images)</figcaption></figure>



NAIROBI, July 5 (Reuters)&nbsp;&#8211;&nbsp;Kenyan activist Bill Eugene Omollo was walking home after dark in his Nairobi neighbourhood on June 20 when he spotted trouble &#8211; two men eyeing him next to a parked white pick-up without number plates.



The 28-year-old had been involved in the youth-led protests that have upended Kenya since last month and had been released by police only hours earlier following his arrest at one of the demonstrations.



He shouted for help.



&#8220;But people were also running. So they took me,&#8221; he told Reuters.



Dozens of Kenyans have been targeted in similar abductions in the past two weeks, said human rights groups, who blame the extrajudicial arrests on Kenya&#8217;s intelligence services.



Organised online and leaderless, the protests &#8211; initially a call to repeal tax hikes &#8211; have developed into a movement that has cut across Kenya&#8217;s traditional ethnic divisions, becoming the biggest threat of William Ruto&#8217;s two-year-old presidency.



Though Ruto withdrew the tax increases in a victory for the movement, the heavy-handed reaction to the protests &#8211; campaign groups have documented hundreds of arrests and at least 39 deaths &#8211; has raised fears of rights backsliding.



&#8220;The president and I gave a categorical promise to the people of Kenya that the issue was abductions and extrajudicial killings will never happen again,&#8221; Deputy President Rigathi Gachagua said in a televised address. &#8220;Sadly, this is back.&#8221;



A police spokesperson did not respond to a request for comment on the abductions. Nor did Noordin Haji, the director of Kenya&#8217;s intelligence services.



In an interview on Sunday, Ruto denied police involvement in disappearances but broadly defended the actions of the security forces.



However, Irungu Houghton, executive director of Amnesty International Kenya, told Reuters there were clear cases of abuse.



&#8220;People who are considered to be protesters or organisers or even just simply voices of dissent are being plucked from their homes or even as they go to church with their families and locked up,&#8221; he said.



<h2 class="wp-block-heading" id="h-blindfolded-and-interrogated">BLINDFOLDED AND INTERROGATED</h2>



Amnesty, the Kenya National Commission on Human Rights and the Law Society of Kenya all put the number of abductions at more than 30, though they said most were later released.



Faith Odhiambo, the president of Law Society of Kenya, said the interrogations abduction victims have undergone during their ordeals have focused on how the protest movement is financed, how it is organised, and the identity of its leaders.



&#8220;It&#8217;s a very clear indication that the government is behind this,&#8221; she said.



After his aggressors bundled him into their vehicle, Omollo said he was blindfolded and driven to an unknown location where he was brought to a room and ordered to strip to his underwear.



He was forced to sit on the concrete floor, which his captors flooded with freezing water. Then the interrogation and threats to his family began.



&#8220;They asked me &#8216;Who sent you? Who is funding you?&#8217;. I told them no one is funding us,&#8221; said Omollo, who does not know who abducted him and has not reported the incident to the police.



&#8220;I thought I would be a dead man.&#8221;



<h2 class="wp-block-heading" id="h-the-missing">THE MISSING</h2>



Houghton said Amnesty had confirmed some instances of torture during the illegal detentions.



Odhiambo of the Law Society of Kenya said that if the goal of the abductions was to intimidate the victims, then it appeared to be succeeding.



&#8220;They don&#8217;t want to be seen on social media or any forums,&#8221; she said. &#8220;Fear has been instilled.&#8221;



After 24 hours, Omollo&#8217;s abductors loaded him back into their vehicle and left him near a police station.



He is among the lucky ones. The rights groups say a handful of abduction victims remain unaccounted for.



Nairobi resident Mutia Paul is still looking for his 17-year-old brother, Tony, who was last seen heading for a protest on June 25.



Paul has searched at police stations and hospitals. He has scoured the morgues for his body. He now believes Tony is being detained.



&#8220;My heart is full of sorrow, I have done all I can,&#8221; he said.



Activists have vowed to keep up pressure on Ruto and lawmakers. But Omollo told Reuters he has had enough of protesting.



Worried that he was being followed and could be abducted again, he has left Nairobi.



&#8220;I miss my home, I miss my brothers, I miss my sisters and I miss my community,&#8221; he said. &#8220;I feel like a refugee in my own country.&#8221;



(Additional reporting by Aaron Ross and Vivian Wandera; Writing by Olivia Kumwenda-Mtambo; Editing by Joe Bavier and Angus MacSwan)

Demonstration against tax regulation in Kenya

Kenya rights groups decry abductions as government cracks down on protests

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/42CTWLL6LJPYDHMYIWIJ6ISWHI-820x547.jpg" alt="" class="wp-image-503918" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/42CTWLL6LJPYDHMYIWIJ6ISWHI-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/42CTWLL6LJPYDHMYIWIJ6ISWHI-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/42CTWLL6LJPYDHMYIWIJ6ISWHI-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/42CTWLL6LJPYDHMYIWIJ6ISWHI-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/42CTWLL6LJPYDHMYIWIJ6ISWHI-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/42CTWLL6LJPYDHMYIWIJ6ISWHI-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">President William Kipchirchir Ruto of Kenya speaks during a plenary session of the Summit on peace in Ukraine, in Stansstad near Lucerne, Switzerland, June 16, 2024. URS FLUEELER/Pool via REUTERS/File Photo</figcaption></figure>



NAIROBI, July 4 (Reuters) &#8211; Kenyan President William Ruto spoke by phone with International Monetary Fund chief Kristalina Georgieva in the days after he withdrew $2.7 billion in proposed tax hikes in response to deadly protests, two diplomatic sources told Reuters.



The finance bill containing the tax increases was central to policy reforms agreed by Kenya with the IMF as part of a lending programme worth $3.6 billion.



Analysts say its withdrawal a week ago is likely to result in Kenya missing key programme targets.



The IMF has been a major target of the ire of young Kenyan protesters, who have accused it of being the driving force behind the proposed tax hikes.



The two sources, who spoke on condition of anonymity, did not provide details about Ruto and Georgieva&#8217;s phone call.



However, they said there was agreement among major donors that the IMF needed to show flexibility on programme targets as Kenya looked to fill the gap caused by the bill&#8217;s withdrawal.



The IMF reached a staff level agreement with Kenya in early June on a policy package needed to complete the lending programme&#8217;s seventh review, expected to unlock a disbursement of several hundred million dollars, but the deal has not yet received approval from the fund&#8217;s Executive Board.



An IMF spokesperson said: &#8220;We remain deeply concerned by the recent tragic events in Kenya and maintain close ongoing and constructive dialogue with the Kenyan authorities,&#8221; when asked about the call.



Ruto&#8217;s spokesperson did not respond to requests for comment.



Since shelving the bill, Ruto has pledged to include austerity measures in a supplemental budget, but has also suggested that the government will need to significantly increase borrowing in the 2024/25 fiscal year.



An IMF spokesperson said last week that its main goal has been helping Kenya overcome its economic challenges and improving its people&#8217;s well-being.



At least 39 people have been killed in the protests, according to a government-funded human rights organisation. Anti-government demonstrations have continued since Ruto pulled the bill, although with lower turnout.



(Additional reporting by Karin Strohecker; Editing by Alexander Smith)

Summit on peace in Ukraine, in Switzerland

Kenya president spoke to IMF chief after pulling tax hikes, sources say

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="573" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/RIXFSHFQNBMNVKPT4MGONQLT7M-820x573.jpg" alt="" class="wp-image-503885" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/RIXFSHFQNBMNVKPT4MGONQLT7M-820x573.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/RIXFSHFQNBMNVKPT4MGONQLT7M-300x209.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/RIXFSHFQNBMNVKPT4MGONQLT7M-129x90.jpg 129w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/RIXFSHFQNBMNVKPT4MGONQLT7M-768x536.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/RIXFSHFQNBMNVKPT4MGONQLT7M-1536x1072.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/RIXFSHFQNBMNVKPT4MGONQLT7M-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Ethiopian Prime Minister Abiy Ahmed speaks in parliament during a session to approve the country&#8217;s 2024/25 budget, in Addis Ababa, Ethiopia, July 4, 2024. REUTERS/Tiksa Negeri</figcaption></figure>



ADDIS ABABA, July 4 (Reuters)&nbsp;&#8211;&nbsp;Ethiopia will receive $10.5 billion in support over the coming years if long-running negotiations with the International Monetary Fund and World Bank are successful, Prime Minister Abiy Ahmed said on Thursday.



In December, East Africa&#8217;s most populous country, struggling with high inflation and chronic foreign currency shortages, became the third on the continent in as many years to default on its debt.



Sources familiar with the matter previously told Reuters that Ethiopia was seeking to borrow around $3.5 billion under a reform programme with the IMF, while a Western diplomat said it was also trying to secure $3.5 billion in budget support from the World Bank and find another $3.5 billion in savings through debt restructuring.



Analysts say Ethiopia may need to agree to devalue its birr currency&nbsp;ETB=, which trades about 50% weaker than the official exchange rate on the black market, to secure IMF support.



&#8220;We have been having a wide range of talks, negotiations and discussions with the IMF and World Bank. Because we were a bit tough with them and they were also tough with us, the (talks) took five years,&#8221; Abiy told lawmakers.



&#8220;Now with the support of some friendly countries, it seems like many of our ideas have been accepted. If this succeeds and we are able to agree on the reforms, Ethiopia will get $10.5 billion in the coming years,&#8221; he said.



Abiy added that there were some reforms the government was unwilling to undertake right away, without elaborating.



&#8220;There are some areas we think should be reformed now, and there are things we think should stay as it is. If all these suggestions get accepted and we agree, there is an opportunity ahead of us. This reform agenda will play a huge impact in alleviating the debt burden,&#8221; the prime minister said.



(Reporting by Dawit Endeshaw; writing by Hereward Holland; editing by Alexander Winning and Mark Heinrich)

Ethiopia’s Parliament approves 2024/25 fiscal year budget

Ethiopia to get $10.5 bln if IMF, World Bank talks succeed, PM says

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="542" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-2155191891-820x542.jpg" alt="" class="wp-image-503797" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-2155191891-820x542.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-2155191891-300x198.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-2155191891-136x90.jpg 136w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-2155191891-768x508.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-2155191891-1536x1016.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-2155191891-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Traffic drives down Sokoine Drive at dusk away from modern high rise buildings in the Ilala central business district in Dar es Salaam, Tanzania. (Photo by: Andy Soloman/UCG/Universal Images Group via Getty Images)</figcaption></figure>



DAR ES SALAAM, July 4 (Reuters) &#8211; Tanzania&#8217;s central bank left its key interest rate unchanged at 6%, it said on Thursday, adding that inflation expectations were well below target, the economy was growing strongly and exchange rate pressures were expected to ease.



The Bank of Tanzania introduced a benchmark interest rate in January as part of a new monetary policy framework, first setting it at 5.5% before raising it to 6.0% in April.



The bank targets inflation of 5%, but consumer inflation has stayed comfortably below that, coming in at 3.1% year-on-year in May.



In its latest Monetary Policy Committee (MPC) statement, the central bank said inflation was expected to range from 3%-4% in the second half of 2024.



&#8220;The MPC expects Tanzania&#8217;s economy to continue growing strongly, food supply to be adequate, and exchange rate pressures to moderate owing to increased foreign exchange inflows from tourism, gold, as well as cash crops and food,&#8221; the statement read.



Economic growth for the first and second quarters of the year was estimated around 5.0% and 5.4%, respectively, it said.



The current account deficit in the country of around 65 million people is estimated to have narrowed slightly to $959 million in the quarter ending in June, compared with $978 million in the corresponding quarter in 2023.



The improvement was driven by higher export earnings from gold and crops as well as tourism, the bank said.



Foreign exchange reserves remained adequate, above $5 billion at the end of June, sufficient to cover more than 4 months of projected imports, it said.



In the financial year that ended in June, the central bank bought 418 kg of gold to bolster its reserves and in the current financial year it intends to buy 6 metric tons of gold, deputy governor Yamungu Kayandabila told reporters.



(Reporting by Nuzulack Dausen; Writing by Hereward Holland; Editing by Alexander Winning and Emelia Sithole-Matarise)

Kivokoni Road and tall buildings Dar es Salaam, Tanzania

Tanzania central bank holds key rate, sees strong economic growth

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="558" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/6PQOLLEGFNICTCFEZK6NQXA3EI-820x558.jpg" alt="" class="wp-image-503524" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/6PQOLLEGFNICTCFEZK6NQXA3EI-820x558.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/6PQOLLEGFNICTCFEZK6NQXA3EI-300x204.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/6PQOLLEGFNICTCFEZK6NQXA3EI-132x90.jpg 132w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/6PQOLLEGFNICTCFEZK6NQXA3EI-768x523.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/6PQOLLEGFNICTCFEZK6NQXA3EI-1536x1046.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/6PQOLLEGFNICTCFEZK6NQXA3EI-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Farmers harvest maize crop facilitated by the Safaricom DigiFarm App that helps agribusinesses and small holding farmers to share information and transact easily, in Sigor village of Bomet County, Kenya, May 28, 2020. REUTERS/Jackson Njehia/File Photo</figcaption></figure>



NAIROBI, July 3 (Reuters)&nbsp;&#8211;&nbsp;Kenya&#8217;s economy grew 5.0% year-on-year in the first quarter of 2024, down slightly from the 5.5% growth in the same quarter last year, its statistics office said on Wednesday.



Growth was driven by sectors including agriculture, forestry and fishing, real estate, financial and insurance, information and communication, and accommodation and food services, the Kenya National Bureau of Statistics (KNBS) said.



&#8220;Similar to the first quarter of 2023, agricultural production was vibrant in the corresponding quarter of 2024, owing to favourable weather conditions that supported crop and animal production during the quarter,&#8221; KNBS said in a statement.



Growth was also marginally higher in the fourth quarter of 2023, at 5.1% year-on-year.



(Reporting by Hereward Holland; Editing by Alexander Winning)

Farmers harvest maize crop facilitated by the Safaricom DigiFarm App that helps agribusinesses and small holding farmers to share information and transact easily, in Sigor village of Bomet County

Kenyan economic growth down slightly at 5.0% in first quarter

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="525" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/O4DDOWTHABMRZCQ5YHOW2COCV4-820x525.jpg" alt="" class="wp-image-503489" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/O4DDOWTHABMRZCQ5YHOW2COCV4-820x525.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/O4DDOWTHABMRZCQ5YHOW2COCV4-300x192.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/O4DDOWTHABMRZCQ5YHOW2COCV4-141x90.jpg 141w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/O4DDOWTHABMRZCQ5YHOW2COCV4-768x492.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/O4DDOWTHABMRZCQ5YHOW2COCV4-1536x984.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/O4DDOWTHABMRZCQ5YHOW2COCV4-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A protester carries a casket during a demonstration over police killings of people protesting against the imposition of tax hikes by the government, in Nairobi, Kenya, July 2, 2024. REUTERS/John Muchucha/File Photo</figcaption></figure>



NAIROBI, July 3 (Reuters) &#8211; Activists behind Kenya&#8217;s anti-government protests are rethinking their strategy after demonstrations on Tuesday were marred by violence and looting that they fear could undermine the movement and its efforts to push President William Ruto to resign.



The activists say the violence was the work of &#8220;goons&#8221; hired by politicians to either discredit legitimate demonstrators or advance their own agendas. Some called on social media for the next planned demonstration on Thursday not to go ahead.



&#8220;It seems the state has realised that the only way to counter this movement is by using goons to incite violence, break into people&#8217;s property, loot, and tarnish our cause,&#8221; Ojango Omondi, an activist in the capital Nairobi, told Reuters.



&#8220;It&#8217;s time to go back to the drawing board and strategise on how best to overcome this violence and keep our protests focused on their true objectives.&#8221;



Kenya&#8217;s government spokesperson did not respond to a request for comment. In a statement on Tuesday, Interior Minister Kithure Kindike blamed violence on &#8220;hordes of marauding criminal gangs&#8221; and said there was an attempt to &#8220;politicise crime&#8221;.



The initial protests last month against proposed tax hikes were overwhelmingly peaceful, although the police fired tear gas and water cannon at demonstrators.



The mobilisation of Kenyans from across ethnic lines around common economic demands marked a break with previous protest movements that have typically been organised by political figures with ethnic grievances often at the fore.



The protests became violent as some demonstrators briefly stormed parliament last week and the police opened fire, killing dozens.



The next day, Ruto withdrew the tax increases. But protesters vowed to carry on, issuing a range of demands, from anti-corruption measures to Ruto&#8217;s resignation.



Almost from the outset, protests on Tuesday were marked by violence. Stone-throwing young men clashed with police in Nairobi and other towns. Looters stormed businesses, leading shopowners to arm themselves with sticks and clubs.



Foi Wambui, a young actress who had come to protest in downtown Nairobi, said she was heading home because of the chaos.



&#8220;What has happened is that peaceful protesters are deterred from coming to town, and we are deterred from actually coming and practising our civic duties,&#8221; she told Reuters.



<h2 class="wp-block-heading" id="h-discrediting-the-movement">DISCREDITING THE MOVEMENT</h2>



In official statements, Ruto and the government have generally distinguished between peaceful protesters and those they brand as criminals that have hijacked the demonstrations.



But their allies have seized on the violence to try to discredit the movement, popularly known as Gen Z protests for their youthful following.



Dennis Itumbi, a political consultant close to Ruto, posted a video on X of a group of young men robbing another man in the streets. It was not clear where or when the video was taken.



&#8220;Congratulations Gen-Z for your Peaceful and democratic protests along the streets,&#8221; Itumbi wrote. &#8220;The police should not interfere with your moves.



Gerald Bitok, the communications director at the presidency, said young people were beginning to turn against the protests.



&#8220;The Gen Zs and the young people of this country have made it crystal clear that going forward, they will not be part of the demonstrations that are now synonymous with terror,&#8221; he said on X.



On a public forum on X on Tuesday evening that was attended by over 400,000 people, one supporter of the protest movement said it bore some responsibility for the chaos by continuing to call for demonstrations after Ruto withdrew the tax hikes.



&#8220;You are equally culpable if you are still beating the drums of war,&#8221; he said.



Other speakers said what they referred to as paid goons were to blame, but several agreed that demonstrators should take a step back and call off Thursday&#8217;s protest.



&#8220;We will have more casualties and we will not achieve what we want,&#8221; said one. &#8220;Let&#8217;s go back. Let&#8217;s strategise.&#8221;



(Reporting by Aaron Ross; Additional reporting by George Obulutsa and Mukelwa Hlatshwayo; Editing by Tomasz Janowski and Barbara Lewis)

FILE PHOTO: Anti-government protests against the imposition of tax hikes by the government in Nairobi

Kenyan activists rethink strategy after protests turn violent

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="530" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/RATMU646AFL3ZKYVS5LWKQ3QUM-820x530.jpg" alt="" class="wp-image-503421" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/RATMU646AFL3ZKYVS5LWKQ3QUM-820x530.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/RATMU646AFL3ZKYVS5LWKQ3QUM-300x194.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/RATMU646AFL3ZKYVS5LWKQ3QUM-139x90.jpg 139w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/RATMU646AFL3ZKYVS5LWKQ3QUM-768x496.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/RATMU646AFL3ZKYVS5LWKQ3QUM-1536x993.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/RATMU646AFL3ZKYVS5LWKQ3QUM-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A view shows the Nairobi cityscape on the Nairobi Expressway undertaken by the China Road and Bridge Corporation (CRBC) on a public-private partnership (PPP) basis, along Waiyaki Way within the Central Business district of Nairobi, Kenya May 7, 2023. REUTERS/Thomas Mukoya</figcaption></figure>



NAIROBI, July 3 (Reuters)&nbsp;&#8211;&nbsp;Kenya&#8217;s private sector activity fell in June, hit by the impact of widespread protests against a now-shelved finance law, a business survey showed on Wednesday.



The Stanbic Bank Kenya Purchasing Managers&#8217; Index (PMI) fell to 47.2 in June from 51.8 in May. Readings below 50.0 signal contraction.



&#8220;Tough economic conditions brought on by the cost-of-living crisis, as well as protests surrounding the country&#8217;s finance bill hurt sales volumes,&#8221; Stanbic Bank Kenya said in comments accompanying the survey.



&#8220;The downturn was partially softened by a rise in new orders across manufacturing, which was the only monitored sector to register growth in June.&#8221;



Last week President William Ruto withdrew a contested finance law that would have raised taxes after clashes between protesters and police killed at least 24 people.



However, Kenyan activists have urged people to take to the streets again, calling on the government to take tougher action to curb wasteful spending and corruption.



&#8220;In June, momentum in private sector activity declined, reflecting several concerns, top of the list being the proposed increase in taxes via the Finance Bill 2024, and the widespread protests in response,&#8221; Christopher Legilisho, an economist at Stanbic Bank, said.



(Reporting by George Obulutsa; Editing by Christina Fincher)

A view shows the Nairobi cityscape on the Nairobi Expressway undertaken by the China Road and Bridge Corporation along Waiyaki Way within Westlands district of Nairobi

Kenya’s private sector activity contracts in June, PMI shows

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/09/GettyImages-1240090144-820x547.jpg" alt="" class="wp-image-419915" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/09/GettyImages-1240090144-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/GettyImages-1240090144-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/GettyImages-1240090144-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/GettyImages-1240090144-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/GettyImages-1240090144-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/GettyImages-1240090144-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">The World Bank Group headquarters in Washington, D.C., U.S., on Tuesday, April 19, 2022. The International Monetary Fund (IMF) slashed its world growth forecast by the most since the early months of the Covid-19 pandemic, and projected even faster inflation, after Russia invaded Ukraine and China renewed virus lockdowns. Photographer: Al Drago/Bloomberg via Getty Images</figcaption></figure>



LUSAKA, July 2 (Reuters)&nbsp;&#8211;&nbsp;The World Bank has approved a $208 million grant for Zambia to help address the social and economic impact of drought that has hit the southern African nation, its finance ministry said on Tuesday.



Southern Africa is enduring its worst drought in years, owing to a combination of naturally occurring El Nino &#8211; when an abnormal warming of waters in the eastern pacific radiates heat into the air leading to hotter weather across the world &#8211; and higher average temperatures produced by greenhouse gas emissions.



Zambia, Malawi and Zimbabwe have all declared a state of disaster because of the drought, which has hit food production and livelihoods of millions of people.



The World Bank grant is intended to help Zambia effectively respond to the impact of drought through the provision of additional temporary cash payments to affected households.



&#8220;Specifically, it will support at least over 1.6 million households across 84 drought-impacted districts with emergency cash assistance over a 12-month period,&#8221; Zambia&#8217;s finance ministry said in a statement.



The World Bank financing would also strengthen existing social protection programmes, the ministry said.



The International Monetary Fund&#8217;s board last month approved a request from the Zambian government to increase its financial support to Zambia to $1.7 billion from $1.3 billion to help the nation respond to the drought.



(Reporting by Chris Mfula; Editing by Susan Fenton)

IMF And World Bank Headquarters During Virtual Spring Meetings

World Bank approves $208 million for Zambia’s drought response

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="544" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/C57JR5R4DBJ2ZIC65E7RHL4ONE-820x544.jpg" alt="" class="wp-image-503124" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/C57JR5R4DBJ2ZIC65E7RHL4ONE-820x544.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/C57JR5R4DBJ2ZIC65E7RHL4ONE-300x199.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/C57JR5R4DBJ2ZIC65E7RHL4ONE-136x90.jpg 136w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/C57JR5R4DBJ2ZIC65E7RHL4ONE-768x509.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/C57JR5R4DBJ2ZIC65E7RHL4ONE-1536x1018.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/C57JR5R4DBJ2ZIC65E7RHL4ONE-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">People attend a demonstration over police killings of people protesting against the imposition of tax hikes by the government in Nairobi, Kenya, July 2, 2024. REUTERS/Monicah Mwangi</figcaption></figure>



NAIROBI/MOMBASA, July 2 (Reuters)&nbsp;&#8211;&nbsp;Riot police fired tear gas grenades and charged at stone-throwing protesters in downtown Nairobi&nbsp;and across Kenya on Tuesday in the most widespread unrest since at least two dozen protesters died in clashes a week ago.



The nationwide demonstrations signalled that President William Ruto had failed to appease a spontaneous youth protest movement, despite having abandoned plans for tax rises that triggered the unrest last week.



Tuesday&#8217;s demonstrations began in ebullient mood but turned more violent as the day wore on. In Nairobi&#8217;s downtown business district, police wearing helmets and carrying shields and wooden clubs charged at the protesters, and tear gas bombs exploded in the crowds.



A kiosk was set ablaze in the centre of a street. Medics tended to a youth who lay on the pavement with a bloody hand. Police bundled other youths into the bed of a pickup truck.



Outside the capital, hundreds of protesters marched through&nbsp;Mombasa, Kenya&#8217;s second largest city,&nbsp;on the Indian Ocean coast. They carried palm fronds, blew on plastic horns and beat on drums, chanting &#8220;Ruto must go!&#8221;



Later, Kenya&#8217;s NTV television reported two people shot in Mombasa, showing pictures of cars ablaze.



Ruto, facing the worst crisis of his nearly two-year-old presidency, has been caught between the demands of lenders such as the International Monetary Fund to cut deficits, and a hard-pressed population reeling from the soaring cost of living.



Members of the protest movement, which has no official leaders and largely organises via social media, have rejected Ruto&#8217;s appeals for dialogue &#8211; even after he abandoned his proposed tax rises.



&#8220;People are dying in the streets and the only thing he can talk about is money. We are not money. We are people. We are human beings,&#8221; protester Milan Waudo told Reuters in Mombasa. &#8220;He needs to care about his people, because if he can&#8217;t care about his people then we don&#8217;t need him in that chair.&#8221;



Other protests took place in Kisumu, Nakuru, Kajiado, Migori, Mlolongo and Rongo, according to images broadcast on Kenyan television. In the southwestern town of Migori, protesters set tyres on fire.



The Kenya National Commission on Human Rights (KNHCR) says 39 Kenyans&nbsp;have been killed in demonstrations and clashes with police since June 18.&nbsp;Most of the deaths took place on June 25 when&nbsp;officers opened fire near parliament where some protesters&nbsp;tried to storm the building to prevent lawmakers from voting on the tax hikes.



<h2 class="wp-block-heading" id="h-beautiful-day">&#8216;BEAUTIFUL DAY&#8217;</h2>



&#8220;We are determined to push for the president&#8217;s resignation,&#8221; said Ojango Omondi, an activist in Nairobi. &#8220;We hope for a peaceful protest and minimal casualties, if any.&#8221;



The authorities appealed for calm.



&#8220;It&#8217;s a beautiful day to choose patriotism. A beautiful day to choose peace, order and the sanctity of our nationhood,&#8221; State House communications director Gerald Bitok wrote on X on Tuesday, adding in Swahili: &#8220;Violence is not patriotism.&#8221;



Some activists who had called for the demonstrations deplored the unrest. &#8220;Goons have infiltrated,&#8221; Hanifa Adan, an activist and reporter for the Eastleigh Voice newspaper, wrote on X, followed by broken heart emojis.



Opposition leader Raila Odinga, runner-up in the last four presidential elections, backed the protesters though they have called on politicians to keep out of it.



&#8220;The youth have given our country its last best chance,&#8221; Odinga&#8217;s ODM party said in a statement. &#8220;We either seize it and swim with it by implementing all their demands, or we ignore it and sink the country altogether.&#8221;



The protests, which started as an online outpouring of anger over nearly $2.7 billion of tax&nbsp;increases in a proposed finance bill, have grown into a nationwide movement against corruption and&nbsp;misgovernance.



Ruto has directed the treasury to come up with ways to cut spending to fill a budget gap left by the withdrawal of the tax plans, and also said more borrowing would be required.



Veteran anti-corruption activist John Githongo told Reuters that while Ruto had addressed the nation and media, &#8220;there isn&#8217;t an indication that he wants to take action&#8221; on protesters&#8217; demands, including firing corrupt officials.



&#8220;There hasn&#8217;t been any indication by the government that they are going to take the calls to deal with corruption seriously,&#8221; he said.



The protests&nbsp;had been&nbsp;mostly peaceful until&nbsp;June 25, when some&nbsp;demonstrators&nbsp;briefly stormed parliament and set part of it ablaze,&nbsp;prompting&nbsp;police&nbsp;to&nbsp;open fire.



Ruto has defended the actions of the police and blamed the violence on &#8220;criminals&#8221; who&nbsp;had&nbsp;hijacked the demonstrations.



(Reporting by Aaron Ross, Monicah Njeri, Jeff Kahinju, Olivia Kumwenda-Mtambo in Nairobi and Dicksy O&#8217;Biero in Mombasa; writing by Hereward Holland and Peter Graff; editing by Andrew Heavens, Bernadette Baum, Gareth Jones and Mark Heinrich)

Anti-government protests against the imposition of tax hikes by the government in Nairobi

Tear gas, stones and flames as Kenya protesters say ‘Ruto must go!’

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/2BQXSB7ZGJI3LF7IF23ZKLG3AU-820x547.jpg" alt="" class="wp-image-503012" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/2BQXSB7ZGJI3LF7IF23ZKLG3AU-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/2BQXSB7ZGJI3LF7IF23ZKLG3AU-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/2BQXSB7ZGJI3LF7IF23ZKLG3AU-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/2BQXSB7ZGJI3LF7IF23ZKLG3AU-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/2BQXSB7ZGJI3LF7IF23ZKLG3AU-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/2BQXSB7ZGJI3LF7IF23ZKLG3AU-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A protester walks amid smoke as supporters of Kenya&#8217;s opposition leader Raila Odinga of the Azimio La Umoja (Declaration of Unity) One Kenya Alliance, participate in an anti-government protest against the imposition of tax hikes by the government in Nairobi, Kenya July 21, 2023. REUTERS/Thomas Mukoya/File Photo</figcaption></figure>



NAIROBI, July 2 (Reuters) &#8211; Riot police used tear gas to disperse protesters in Kenya&#8217;s capital Nairobi on Tuesday and demonstrations took place in other towns, after young activists called for more protests following a week of clashes in which dozens died.



Reuters journalists saw clouds of tear gas on a main road through central Nairobi before midday, where riot police in helmets had been present since early morning.



Outside the capital, Kenyan television stations showed hundreds of protesters marching peacefully, carrying palm fronds in Mombasa on the Indian Ocean coast, and dozens in Kisumu on Lake Victoria. In the southwestern town of Migori, protesters had set tyres on fire.



Members of the protest movement, which has no official leaders and largely organises via social media, have rejected appeals from President William Ruto for dialogue, even after he abandoned proposed tax rises that triggered the demonstrations.



Dozens of Kenyans have been killed in demonstrations and clashes with police since June 18, most of them shot by officers last Tuesday, when some protesters tried to storm parliament to block lawmakers from voting on the tax increases.



Infuriated by the deaths &#8211; at least 39 according to the government-funded Kenya National Commission on Human Rights (KNHCR) &#8211; many are demanding that Ruto steps down.



<h2 class="wp-block-heading" id="h-demanding-ruto-s-resignation">DEMANDING RUTO&#8217;S RESIGNATION</h2>



&#8220;We are determined to push for the president&#8217;s resignation,&#8221; said Ojango Omondi, an activist in Nairobi. &#8220;We hope for a peaceful protest and minimal casualties, if any.&#8221;



The authorities appealed for calm.



&#8220;It&#8217;s a beautiful day to choose patriotism. A beautiful day to choose peace, order and the sanctity of our nationhood,&#8221; State House communications director Gerald Bitok wrote on X on Tuesday, adding in Swahili: &#8220;Violence is not patriotism.&#8221;



Downtown Nairobi was busier on Tuesday morning than it had been in recent days, with shops that had been shut during the protests reopening. Residents believed the worst of the unrest had passed for now.



&#8220;I think it&#8217;s not going to be maandamano (protest) because maybe people are afraid, because some people have been shot,&#8221; said Kennedy Otwal, who was walking through downtown.



The protests, which started as an online outpouring of anger over nearly $2.7 billion of tax hikes in a proposed finance bill, have grown into a nationwide movement against corruption and misgovernance.



<h2 class="wp-block-heading" id="h-caught-between-demands">CAUGHT BETWEEN DEMANDS</h2>



Ruto, facing the most serious crisis of his nearly two-year-old presidency, has been caught between the demands of lenders such as the International Monetary Fund to cut deficits, and a hard-pressed population reeling from the soaring cost of living.



He has directed the treasury to come up with ways to cut spending to fill a budget gap caused by the bill&#8217;s withdrawal, and also said more borrowing will be required.



Veteran anti-corruption activist John Githongo told Reuters that while Ruto had addressed the nation and media, &#8220;there isn&#8217;t an indication that he wants to take action&#8221; on protesters&#8217; demands, including firing corrupt officials.



&#8220;There hasn&#8217;t been any indication by the government that they are going to take the calls to deal with corruption seriously,&#8221; he said.



The protests were mostly peaceful until last Tuesday, when some protesters briefly stormed parliament and set part of it ablaze, and police opened fire.



Ruto has defended the actions of the police, and blamed the violence on &#8220;criminals&#8221; who hijacked the demonstrations.



(Reporting by Aaron Ross, Monicah Njeri and Jeff Kahinju; Additional reporting by Olivia Kumwenda-Mtambo; Writing by Hereward Holland and Peter Graff; Editing by Andrew Heavens and Bernadette Baum)

Kenya police use tear gas to disperse crowds after call for more demonstrations

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/KHXBMAI2KVMZVFFWJRXE5BTEH4-820x547.jpg" alt="" class="wp-image-502746" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/KHXBMAI2KVMZVFFWJRXE5BTEH4-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/KHXBMAI2KVMZVFFWJRXE5BTEH4-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/KHXBMAI2KVMZVFFWJRXE5BTEH4-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/KHXBMAI2KVMZVFFWJRXE5BTEH4-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/KHXBMAI2KVMZVFFWJRXE5BTEH4-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/KHXBMAI2KVMZVFFWJRXE5BTEH4-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">People react to tear gas during a demonstration over police killings of people protesting against Kenya&#8217;s proposed finance bill 2024/2025, in Nairobi, Kenya, June 27, 2024. REUTERS/Monicah Mwangi</figcaption></figure>



NAIROBI, July 1 (Reuters) &#8211; Kenyan activists called for protesters to take to the streets again on Tuesday, with many rejecting appeals from President William Ruto for dialogue following his decision to withdraw proposed tax hikes.



At least 24 people were killed in clashes between protesters and police last week, when parliament was briefly stormed and set ablaze.



The protests, which have been led by young people and organised largely on social media, were initially sparked by a finance bill intended to raise 346 billion Kenyan shillings ($2.69 billion) in taxes.



But the demands of many protesters have escalated over the past two weeks to include calls to root out corruption and for Ruto to step down, presenting the most serious crisis of his two-year-old presidency.



An interview Ruto gave on Sunday evening to Kenyan television networks, in which he mostly defended the actions of the police and his government, seemed to have only hardened the positions of protesters.



On Monday, activists were sharing pamphlets on social media that urged people to occupy the capital Nairobi&#8217;s Central Business District. Many posted under the hashtag #OccupyCBDTuesday.



The protest movement has no official leadership, and it was not clear to what extent people would respond to these calls after tens of thousands came out last week in some of the country&#8217;s largest protests in recent memory.



In audio forums on social media, activists have been discussing how to maintain momentum now that the immediate objective of killing the finance bill has been attained.



<h2 class="wp-block-heading" id="h-spending-cuts">SPENDING CUTS</h2>



In his interview on Sunday, Ruto reiterated his previous calls for dialogue with young people. He said he was prepared to do this in a forum of their choosing, including the X Spaces where they often gather to discuss issues and strategise.



Many protesters reject the calls for dialogue, seeing them as an effort to co-opt the movement.



&#8220;You can’t dialogue with someone who is killing you on the other hand,&#8221; one activist said during an X Space over the weekend.



Ruto defended the conduct of the police in his interview, saying they had done the best they could under the circumstances and blaming &#8220;criminals&#8221; who he said had hijacked peaceful protests.



Ruto also suggested in the interview that the budget gap caused by the withdrawal of proposed tax hikes would be funded by borrowing, seemingly contradicting earlier statement that money would be saved through austerity measures.



Asked about&nbsp;this on Monday, Finance Minister Njuguna Ndung&#8217;u noted that there are legal limits on borrowing and the carrying capacity of debt.



&#8220;So it means that we must have expenditure cuts. This will be known once Parliament approves Supplementary one (budget),&#8221; he told Reuters in a text message.



Kenya&#8217;s national debt of more than 70% of gross domestic product already surpasses the statutory limit of 55% of GDP.



After withdrawing the bill, Ruto asked lawmakers to pass a supplementary budget, but parliament is currently in recess.



($1 = 128.5000 Kenyan shillings)



(Reporting by Aaron Ross; Editing by George Obulutsa and Toby Chopra)

People protest against Kenya’s proposed finance bill 2024/2025, in Nairobi

Kenyan activists call for more protests as govt pledges austerity

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/KN4GN4LXKNL4ROPUFKEJ2724LM-820x547.jpg" alt="" class="wp-image-502652" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/KN4GN4LXKNL4ROPUFKEJ2724LM-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/KN4GN4LXKNL4ROPUFKEJ2724LM-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/KN4GN4LXKNL4ROPUFKEJ2724LM-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/KN4GN4LXKNL4ROPUFKEJ2724LM-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/KN4GN4LXKNL4ROPUFKEJ2724LM-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/KN4GN4LXKNL4ROPUFKEJ2724LM-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: People attend a demonstration against Kenya&#8217;s proposed finance bill 2024/2025 in Nairobi, Kenya, June 25, 2024. REUTERS/Monicah Mwangi/File Photo</figcaption></figure>



NAIROBI, June 28 (Reuters)&nbsp;&#8211;&nbsp;In the two years since he was elected, Kenya&#8217;s President William Ruto has wowed global climate activists under the Eiffel Tower, brushed shoulders with global tech titans in Silicon Valley and was toasted as a global peacekeeper at the White House.



As he notched up dozens of foreign trips, however, citizens back home endured gruelling economic hardship.



Already hammered by a cost-of-living crisis and watching those in government enjoy the largesse derived from their positions, Kenyans forced Ruto to ditch plans to introduce eye-watering tax hikes after days of protests.



The U-turn has exposed the gulf between the image of Ruto as the jet-setting global voice not just of Kenya but the wider continent, and the grinding realities his nation faces &#8211; weighed down by debt, corruption and security threats.



It has left him severely weakened domestically with his administration divided in its response and his opponents rejuvenated, seeking to harness the wave of discontent ahead of elections in 2027, analysts and politicians said.



&#8220;Enslaved and supported by foreign interests, and never pro-people in its outlook and interests, (Ruto&#8217;s administration) was bound to face the consequences of its priorities,&#8221; Willy Mutunga, Kenya&#8217;s former chief justice, told Reuters.



&#8220;As long as the material interests of the youth are not addressed, the chasm grows bigger and bigger,&#8221; he said.



A spokesperson for Ruto did not respond to requests for comment.



Kenya &#8211; already one of Africa&#8217;s biggest economies and strongest democracies – has in recent years expanded its global role.



On the eve of the climax of the protests, Ruto flagged off 400 policemen to lead a stabilisation force in Haiti.



The U.S. has designated Kenya as a major non-NATO ally, the first in sub-Saharan Africa, which gives it access to training and equipment but does not oblige it to join NATO operations.



Earlier this month, Ruto spoke at the G7 summit about the need to reform the global financial system to help the poor and has emerged as a powerful advocate for Africa in calls for action on climate change.



However, with protests erupting countrywide, including in Ruto&#8217;s hometown, Eldoret, and louder calls for his departure, some analysts say his administration is fighting for survival.



Should Ruto dedicate more time and energy to addressing domestic concerns, Western powers risk losing the focus of one of their strongest allies in the battle for influence in Africa, where they seek to counter the growing power of Russia and China, diplomats and analysts said.



Ruto has offered dialogue to allay the fears of protesters but it is not clear if that will be accepted or who talks would be with.



He must also come up with a new plan to tackle Kenya&#8217;s economic challenges, likely a hard sell due to the deficit cuts he will need to make to meet the conditions of international lenders for future funding.



&#8220;Even if nationwide demonstrations dissipate, this civil disobedience is a generation-defining moment,&#8221; said Declan Galvin, managing director of Nairobi-based Exigent Risk Advisory, a consultancy.



&#8220;The next election is still several years away but Ruto clearly needs to shift his political position to address public needs for his own political survival.&#8221;



<h2 class="wp-block-heading" id="h-brazen-arrogance">&#8216;BRAZEN ARROGANCE&#8217;</h2>



Ruto&#8217;s has earned a reputation for a fierce work ethic but has struggled to shake an indictment by the International Criminal Court for his role in post-election violence in 2007-8 even after the court dropped the case.



Gabrielle Lynch, a Kenya expert at the University of Warwick in the UK, said that Ruto was &#8220;an incredible performer&#8221;, able to roll out facts and figures for donors and then adapt his body language and tone for a local rally later the same day.



&#8220;It is as if presenting himself as a world leader would help legitimise him at home and remove tag of parochial instigator of violence,&#8221; Lynch said.



Underscoring the scale of his globe-trotting, Ruto went on a total of 62 trips to 38 countries in his first 20 months in power, according to a tally by Kenya&#8217;s Daily Nation newspaper.



But when home, Ruto has appeared tone deaf to complaints over the direction the country was taking, according to two sources in regular contact with his office.



Having campaigned as a champion of low-income &#8220;hustlers&#8221;, Ruto&#8217;s opponents have since given him the nickname &#8220;Zakayo&#8221;, the Swahili name for a greedy tax collector in the Bible.



As protests mushroomed, videos of politicians flaunting their wealth circulated widely. Homes and businesses of parliamentarians who supported the tax hikes have been targeted.



Mutula Kilonzo Jr, a member of the opposition and governor of Makueni County, said the &#8220;brazen arrogance&#8221; of government officials fuelled discontent.



Anger has also been directed at the World Bank and the International Monetary Fund (IMF), seen as the drivers of Ruto&#8217;s fiscal policies. Since his climb-down on tax rises, Ruto must now find another path to make his nation&#8217;s debt pile of some $80 billion, around 70% of GDP, more manageable.



<h2 class="wp-block-heading" id="h-iron-fist-velvet-glove">IRON FIST, VELVET GLOVE</h2>



Kenya&#8217;s relationship with the United States has deepened under Ruto&#8217;s presidency but critics complain the mutual admiration has clouded Washington&#8217;s view on Kenya&#8217;s challenges.



U.S. support has been crucial in the fight against Islamist militants in Somalia and in May, Ruto enjoyed the first state visit to the U.S. by an African leader in over 15 years.



Ruto is seen as close to Meg Whitman, a former CEO at eBay and Hewlett Packard who is currently the U.S. ambassador to Kenya and the relationship has helped attract foreign investors, particularly U.S.-based tech firms, Nairobi-based diplomats say.



Boniface Mwangi, a prominent Kenyan social activist, said diplomatic statements of concern and U.S. Secretary of State Antony Blinken calling Ruto after the violence was &#8220;too little too late&#8221; and Washington must now take a tougher line.



A U.S. State Department spokesperson said the the embassy in Nairobi had consistently called for restraint and the respect for constitutional rights.



Mwangi said that he advised the U.S. embassy last week to leverage their influence over the president to urge him to engage the protesters as the movement was swelling.



&#8220;People had to die for them say something,&#8221; he said. &#8220;They have bought this all shine and charming personality. They don&#8217;t see the iron first behind the velvet glove.&#8221;



(Additional reporting by Daphne Psaledakis in Washington; Editing by Ros Russell)

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Tear gas, stones and flames as Kenya protesters say ‘Ruto must go!’

Kenya police use tear gas to disperse crowds after call for more demonstrations

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Kenya protests expose jet-setting Ruto’s neglect of discontent at home

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