Kenyan President William Ruto has dismissed nearly his entire cabinet in a sweeping move to address public discontent following weeks of antigovernmental protests.
This decision, announced Thursday, leaves only Deputy President Rigathi Gachagua and Prime Cabinet Secretary Musalia Mudavadi in their posts.
“This decision was taken upon reflection and a holistic appraisal of my cabinet,” President Ruto stated from State House Nairobi. “Even with the progress we’ve made, I’m acutely aware that the people of Kenya have very high expectations of me, and they believe that this administration can undertake the most extensive transformation in our nation’s history.”
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Background: The Finance Tax Bill and Protests
The recent turmoil in Kenya traces back to the introduction of a finance tax bill aimed at addressing the country’s fiscal deficit. The bill proposed significant tax increases on fuel, mobile money transfers, and basic goods. The government argued that these measures were necessary to stabilize the economy and reduce national debt.
However, widespread opposition emerged, with critics arguing that the bill would disproportionately affect the poor and middle class, exacerbating the cost of living crisis. Led by opposition figure Raila Odinga, a series of nationwide protests erupted, turning violent and resulting in several deaths and numerous injuries.
Human rights organizations condemned the government’s response, highlighting police brutality and unlawful arrests.
Ruto’s Response and Attempts to Make Amends
Initially, Ruto defended the bill, insisting on the need for tax hikes for economic recovery. As protests grew, he introduced economic relief packages to cushion vulnerable populations and established a task force to review the bill’s implementation. These measures were aimed to enhance transparency and ensure that generated revenue would benefit the public.
As the measures failed to calm the protests, which resulted in the death of several youth protesters, Ruto was forced to withdraw the Finance Bill.
The extensive cabinet downsizing is Ruto’s latest effort to rebuild public trust. By replacing most of his cabinet, the president seeks to introduce new perspectives capable of addressing economic challenges and fostering inclusive growth.
Similarities with Nigeria’s Situation
Kenya’s current situation bears similarities to Nigeria, where calls for cutting the cost of governance have intensified amid economic difficulties.
However, Nigeria’s President Bola Tinubu has not taken decisive steps to address these concerns.
Facing economic headwinds that have forced the country into borrowing, the federal government has continued in its traditional extravagant lifestyle, spending billions of scarce funds on frivolities such as the rehabilitation of buildings, and the purchase of expensive cars for political office holders.
The cabinet reduction in Kenya has stirred mixed reactions. Some see it as a necessary step to address governance issues and restore confidence, while others remain skeptical about the potential for genuine change.
Economists have welcomed the move, urging other African countries to follow the same step to avoid an unrest similar to what happened in Kenya.
Last week, Ruto announced a significant reduction in government spending, amounting to 177 billion shillings ($1.39 billion) for the fiscal year starting in July. The government, facing a substantial budget shortfall due to the withdrawal of the controversial finance bill, will also increase borrowing by approximately 169 billion shillings ($1.3bn) to bridge a 346 billion shilling gap the withdrawal created.
African governments should stop borrowing to finance infrastructures, it’s an unwinnable game. Nigeria was able to misbehave for so long and still standing, simply because it has crude oil. As the crude oil is no longer enough to maintain the profligacy, you will continue to see more turbulence in Nigeria. Some things are not difficult to see how they will end, except you are delusional.
Forget about intellectual sophistry, you cannot finance public infrastructures here and repay from value captured therein, this is because you will always have competing needs, with some being too pressing (defense), and you must allocate resources. This is under the assumption that your managers are prudent and don’t steal money. Now model the same with economic bandits at the helm, you stand no chance.
How do you build and maintain public infrastructures in this type of environment? You have to be very creative, with a dose of ingenuity. You will have to grow local expertise, source funds locally, and probably give up the idea of socialism. To get money to build things, you must guarantee that the pricing will be able to service the running costs and also turn in some profits. You simply cannot do it by borrowing and charging almost nothing.