Kenya's Youth Uprising: A Cry for Justice and Sustainable Development

In a significant turn of events, Kenya has witnessed a remarkable uprising led by its Millenials, Gen Z, and Gen Alpha. Over the past week, the streets have been filled with young voices united in their protest against the Finance Bill 2024. These youth are not just protesting; they are demanding change, urging members of parliament to reject the bill. Their grievances are rooted in the increased taxation burden and budget waste that offer little in the way of real solutions for the country's pressing issues. 

The Unpopular Finance Bill 2024 

The Finance Bill 2024 has been a source of contention, sparking widespread dissatisfaction across the nation. This bill, much like its predecessor in 2023, has been forced through by the country’s leaders despite its unpopularity. The bill's passage has exacerbated the nation's suffering, with increased taxes squeezing the already strained pockets of Kenyans. The government projects that the tax hikes will raise $2.7 billion, claiming it is necessary to reduce reliance on external borrowing. There is no evidence that taxing the same 20% of the society further will yield the results. Get the more citizens into real jobs and you will raise more taxes. Businesses are closing, how will a country raise taxes if the tax base is thinning?  

Contentious Issues in the Finance Bill 2024 

Motor Vehicle Tax: Introduction of a motor vehicle tax at a rate of 2.5% of the vehicle's value, with a minimum of KES 5,000 and a maximum of KES 100,000. This tax has sparked outrage among car owners who see it as an undue financial burden. 

VAT on Essential Items: The bill proposes a 16% VAT on essential items such as bread, which has been met with significant backlash from the public who argue that it will increase the cost of living for ordinary Kenyans. 

Tax on Cooking Oil: A proposed tax on cooking oil, which is a staple in many Kenyan households. Critics argue that this will disproportionately affect lower-income families and further strain household budgets. 

Mobile Money Services: Introduction of taxes on mobile money services, which are widely used in Kenya for financial transactions. This is seen as a move that will hinder financial inclusion and burden the lower-income population who rely heavily on mobile money. 

Digital Content Monetization: A tax on income from digital content monetization, affecting both resident and non-resident content creators. This is perceived as stifling innovation and creativity in the digital space. 

Repeal of Digital Services Tax: Replacement of the digital services tax with a significant economic presence tax at a rate of 30% of deemed taxable profit for non-residents. This change is viewed as complex and potentially discouraging for digital businesses operating in Kenya. 

Increased VAT Registration Threshold: Raising the VAT registration threshold from KES 5 million to KES 8 million. While this aims to reduce the burden on small businesses, it also complicates compliance for many enterprises just above the new threshold. 

Taxation of Pension Contributions: Increase in the limit for tax-deductible pension contributions from KES 20,000 to KES 30,000 per month. While beneficial to higher earners, it does little to alleviate the tax burden on the lower-income earners. 

Taxation of Family Trusts: Introduction of a tax on the income of registered family trusts, which could affect wealth management strategies for many families. 

Changes to Per Diems: Revision of taxation on per diems, subjecting them to tax unless the employer has an approved policy. This could increase the administrative burden on businesses.  

Eco tax: This is a taxation of plastic and other wrappings. This will make things more expensive for the citizens. The idea should be to make the inputs cost very low by zero rating them and the country will be a major producer and expert. The leaders claim that they tax to collect money for their disposal. This is not true. The money collected will go to government coffers for their expenditures. 

Tax on sanitary towels and diapers: This again is not genuine. Again, zero rate the raw materials cost and you will spur an industry growth.  

Extravagant Spending and Mounting Debt 

The current administration's penchant for lavish spending has not gone unnoticed. The president's frequent travels abroad, coupled with the accumulation of massive loans, have done little to spur the country's development. Instead, these financial burdens have only deepened the nation's debt crisis. Large sums of money have been allocated to government offices particularly the top three offices and their spouses. It is interesting to see the cost of renovating the deputy president resident is more than what it costed to build it. Spouses of the top three politicians have been allocated huge sums of money, while critical sectors such as education, healthcare, and essential services suffer from chronic underfunding. Where are the countries priorities. Under the previous government the country saw huge infrastructure projects. This country has initiated none in two years. 

The government's decision to prioritize its own expenses over the welfare of its citizens has led to widespread anger and frustration. The youth, feeling the brunt of these policies, have taken to the streets to demand accountability and a shift in governance. 

The Voice of the Youth: Enough is Enough 

Kenya's youth have had enough. Their protests are not merely about opposing the Finance Bill; they are about demanding accountability and a shift in governance. In my LinkedIn newsletter, "The Daily Pulse," I have extensively covered these issues, highlighting the real issues. I have also offered possible solutions for the country and Africa in general. Please take time and review other articles. Their frustration is palpable, and their demands for end of corruption, justice, jobs, fair governance, and economic opportunities are clear and justified. There can never be taxation without fair representation. The country is ripe for a revolution from quarters we cannot see and may never see. Let the leaders and politicians read the signs of the times.  

In the Book of Daniel, specifically in Daniel 5. The story takes place during the reign of King Belshazzar, the son of Nebuchadnezzar II, who was the king of Babylon. The event is described as follows: 

• The Context: Belshazzar held a grand feast, using the gold and silver vessels taken from the Temple in Jerusalem by his father, Nebuchadnezzar. The guests included nobles, wives, and concubines. They drank wine and praised the gods of gold, silver, bronze, iron, wood, and stone. 

• The Handwriting: Suddenly, the fingers of a human hand appeared and wrote on the plaster of the wall near the lampstand in the royal palace. The king watched as the hand wrote, and his face turned pale. He was so frightened that his legs became weak and his knees knocked together. 

• The Message: The writing consisted of four words: Mene, Mene, Tekel, Upharsin. Daniel interpreted these words as follows: 

• Mene: God has numbered Belshazzar’s days and brought them to an end. 

• Tekel: Belshazzar has been weighed on the scales and found wanting. 

• Upharsin: His kingdom will be divided and given to the Medes and Persians. 

Reflection on Kenya Today 

While the specific historical context of Belshazzar's feast is unique, there are some parallels that can be drawn to contemporary Kenya. Here are a few points: 

Arrogance and Pride: Belshazzar's actions mirrored those of his father, Nebuchadnezzar, who became arrogant and hardened with pride. Similarly, in Kenya, there have been instances of corruption and abuse of power, which can be seen as forms of arrogance and pride. These actions often lead to the downfall of individuals and institutions. 

Disregard for God: Belshazzar and his guests praised the gods of various materials, but they did not honor the God who holds their lives and ways. In Kenya, there is a need for a deeper recognition of God's sovereignty and a commitment to His principles. This can involve a renewed focus on spiritual values and a more just and equitable society. 

Divided Kingdom: The handwriting on the wall foretold the division of Belshazzar's kingdom between the Medes and Persians. In Kenya, there are ongoing efforts to strengthen national unity and address the divisions within the country. This can involve fostering a sense of shared identity and working towards a more inclusive and just society. 

God's Sovereignty: The story of Belshazzar's feast emphasizes God's sovereignty over all kingdoms on earth. In Kenya, there is a need for a deeper understanding of God's role in guiding the nation and for a commitment to His principles. This can involve a renewed focus on spiritual values and a more just and equitable society. The country leaders got power through invoking God and going to churches. After the elections Christians sung “It is not witchcraft but prayers”. No Christian is singing the same songs today.  

While the specific historical context of Belshazzar's feast is unique, there are parallels that can be drawn to contemporary Kenya. These parallels highlight the importance of humility, spiritual values, and a commitment to justice in all areas including taxation, the need to finish corruption, reduce lavish spending at the top, provide education, healthcare, provide conditions that encourages job creation, and unity in building a stronger and more prosperous nation. 

The Questions on Everyone’s Mind: "What Next?" 

Amidst the turmoil, questions loom large. We all now have great admiration for Millennials and Gen X , Gen Z and Gen Alpha across this country. However, I find myself asking, "What Next?" 

• What Next when a populace cries for jobs, and the government lacks the ability or willingness to create them? If the government continues to ignore the cries for employment, the youth might turn to more radical measures, potentially leading to increased crime rates, revolts, volent change of government or even mass emigration as they seek opportunities elsewhere. 

• What Next when the people express their dissatisfaction with government decisions, and their voices go unheard? Historically, when voices go unheard, peaceful protests can escalate into violent confrontations. Kenya risks witnessing scenes of chaos and unrest similar to other nations and those we have witnessed in the past that have faced civil strife due to government inaction. 

• What Next when the youth, despite not being registered voters, earn the respect of those who do vote through their tenacity and unwavering demands? This respect could translate into a significant shift in voting patterns in future elections, with the youth influencing older generations to vote out the current leadership in favor of those who promise and deliver real change. We have witnessed those members of parliaments who voted “Yes” facing the wrath of their citizens and being chased of public gatherings. This might a sign that the leaders should not ignore.  

Solutions Exist: The Need for Government Realization 

There is a consensus that solutions do exist, but it requires those in power to recognize and act upon them. This generation of youth will not be silenced; their demands are relentless and rightful. The politicians who dismiss their concerns, citing their non-voter status, must acknowledge that these youth are shaping the opinions of those who do vote. 

The Path Forward: Encouraging MSMEs and Job Creation 

Kenya stands at a crossroads, and it is imperative to address the youth time bomb with actionable strategies: 

Stop corruption: Systems do not work to ensure that there is room for seeking rent (corruption). The other day the Matatu owners' association said on Spice FM that the industry generates Kshs. 5 billion every day and 30% that is 1.5 billion is used to bribe the police, the city councils' officers, NTSA and others every day to operate. The industry also does not pay a dime in tax from this staggering amount of money. Imagine if we streamlined this sector, how much tax can the government make? 

Encourage trainings, research and innovations: The country has very innovative youth, academicians and researchers. However, there must be a system that can tap into these innovations for the benefit of the country. 

Artificial Intelligence revolution: The world is witnessing the current wave of revolution through AI, ML and LLMs. This country should position itself as a leader in this revolution. Put resources, time and right policies to tap into this revolution.  

Clean energy: The country can be a leader in clear energy. There is abundant solar, wind, geothermal and hydro energies. These can be tapped and provided at the lowest rates in teh country and this will spur industrialization. Industries follow factors of production. Make them cheap and they will come.  

Conducive business environment: Make the country so easy to set up and operate businesses in all sectors. They will come and we will also start businesses. The country is a nation of hustlers. There are few Kenyans who do not have a side hustle. Make these hustles profitable and the rulers and leaders will sleep easy. 

Encouraging MSMEs: Micro, Small, and Medium Enterprises (MSMEs) are the backbone of any economy. The government must create an enabling environment for these enterprises to thrive, offering incentives and reducing bureaucratic hurdles. 

Capacity Building for Job Creation: There is an urgent need for effective capacity-building programs that equip the youth with the skills required in today's job market. This includes vocational training, apprenticeships, and partnerships with private sector entities. 

Promoting Income Generation: The youth are innovative and entrepreneurial. By supporting their ventures, whether through grants, loans, or mentorship programs, we can harness their potential for income generation and economic growth. 

Conclusion: The Time for Change is Now 

The youth of Kenya have spoken, and their message is clear: enough is enough. It is time for the government to listen and act. Sustainable development and economic stability can only be achieved through inclusive policies that address the needs of all citizens, especially the young. The future of Kenya depends on the actions taken today. The world is watching, and the youth are leading the charge for a better tomorrow.