Gen Z’s Unrest with Kenya’s Economic Status Quo

By Mary Anna Joyce

President William Ruto campaigned in 2022 on the promise of implementing economic policies that would pull Kenya’s middle class out of poverty. Rather than carrying out this espoused agenda, Ruto continued adding to the national debt and mishandling loaned money from foreign governments and international organizations. When the Finance Bill 2024 was announced by his administration, it was met with strong opposition from younger citizens—particularly Gen Z—because it proposed a regressive taxation regime on everyday necessities. This summer, Gen Z responded through a series of political demonstrations that culminated in a raid of the Kenyan Parliament in late June. Not only did the actions of Kenya’s youth result in the withdrawal of the tax bill, but it also became a catalyst for the restructuring of Ruto’s internal cabinet and retooling of his economic agenda.  

Prior to the protests, international governments played a key role in influencing Ruto’s flawed economic agendas. The US and China were heavily invested in manipulating the Kenyan government to join their individual global supply chains. Through China’s Belt and Road Initiative, the East Asian nation began lending money to Kenya to build out domestic railroad systems. Instead of extending existing railways, Ruto mishandled these funds and created a new, inefficient railroad that only covered 50 percent of Kenyan land. The US also made great strides to influence Ruto: in late May, the US invited the Kenyan president for an honorary official state visit to strengthen US-Kenyan supply chains. The question remains how the US will invest in Kenyan infrastructure moving forward, and how Ruto’s government will allocate those funds. Without fully understanding the extent of Kenya’s flawed economic management, both China and the US played “tug-of-war” with Kenya to strengthen their global supply chains. 

The overwhelming debt crisis in Kenya juxtaposed with high government spending is the source of economic inefficiency. Ruto was previously the deputy president to his predecessor, Uhuru Kenyatta, from whom he inherited a debt-ridden economy still in recovery from the effects of COVID-19. Since 2022, Kenya’s borrowing and spending costs have astronomically increased, precipitating a collapse in the value of its currency. The debt-to-GDP ratio has also risen drastically each year, with the numbers now exceeding 70 percent. To combat this, Kenya received a conditional loan from the International Monetary Fund (IMF). IMF Experts devised a domestic tax plan that would address the looming debt crisis and help Kenya repay its conditional debt. In order to please IMF interests, Ruto adopted the IMF-backed Finance Bill 2024. 

That is when chaos ensued. Young Kenyans were shocked by the implications of Finance Bill 2024. Understandably, many were concerned about the outsize influence of the IMF in Kenyan domestic politics. Despite being out of tune with Kenya’s domestic economic atmosphere, the IMF had recommended a bill which directly taxed both middle-class and low-income individuals. The Finance Bill 2024 targeted everything from eggs, diapers, cooking oil, phones, and vehicles. Despite previous Kenyan generations finding tribe identities as a source of political divide, Gen Z found unity in their shared discrimination due to these tax propositions. Ruto’s administration also continued to spend public funds recklessly—the highest government officials and the First Lady were granted exorbitant budgets and amenities for their offices. United by their distaste for Ruto’s tax bill, nationwide protests began and Gen Z re-named Ruto “Zakayo,” referring to the famous biblical tax collector Zaccheus. 

On June 25th, after the tax bill passed in Parliament, Gen Z protesters stormed the Parliament building. Almost 40 people lost their lives. Notwithstanding, the success of the protest was clear. A day after, on June 26th, President Ruto withdrew the tax bill and promised economic reform. Ruto’s weakened state meant complete governmental reform within his administration was necessary to regain Gen Z’s trust.

Though reforms are underway, time will only tell whether Ruto’s reformed policies will influence the opinion of the masses. After the protests, Ruto created the Appropriations Bill 2024 to significantly reduce government spending and compensate for the lost tax revenue due to the withdrawn Finance Bill 2024. In cutting federal spending by 177 shillings from the budget, he hoped to combat the rising debt crisis through incremental changes. Additionally, Ruto re-appointed an entirely new Cabinet after gutting the previous one on July 11th, marking a renewed era of Ruto’s presidency. 

Ruto’s restructuring of his government was merciless, and he turned on some of his closest allies. When allegations that his deputy president, Ragathi Gachuaga, had aided and financially supported the protestors, came to light, Ruto was quick to call for his impeachment. Ruto spared no resources in retaliation. He swiftly ignited Senate impeachment processes and Gachuaga was found guilty with a 2/3 majority.14 By reappointing a new deputy president, Ruto made it clear that he would not be undermined by Gen Z’s political influence as he scrambled to cling to power. 

Over the summer, Kenya’s economic policy shifts sent a bold message: Gen Z has a voice in modern politics. This new generation not only changed the status quo, it transformed the direction of Ruto’s entire presidency. Kenya is not the only nation recently rocked by the generation’s political awakening, and many nations must account for this demographic as they make important governmental decisions. After all, Gen Z will be the future generation dealing with the repercussions of poor economic, social, and political agendas. If global leaders want to maintain public appeal, they must be prepared for what this new generation has to say.