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President William Ruto, who chaired the Cabinet meeting on Wednesday, said frequent power outages were hurting Kenya’s investment profile/PCS

NATIONAL NEWS

Govt to shelve Sh200bn projects after Finance Bill 2024 is dropped

NAIROBI, Kenya, June 26 – President William Ruto announced that his administration will shelve Sh200 billion worth of projects following the contentious Finance Bill’s withdrawal due to widespread protests by young people.

Speaking from State House Nairobi on Wednesday, President Ruto stated that the government will no longer finance these projects as part of the austerity measures adopted after dropping the bill. Among the shelved projects are major infrastructure developments, including road construction.

President Ruto also announced budget cuts across the executive, judiciary, legislature, and devolved units, targeting areas such as hospitality and travel. “Equally, let me propose that Parliament, the Judiciary, and county governments, working with the National Treasury, also undertake budget cuts and austerity to ensure that we live within our means, respecting the very loud message coming from the people of Kenya,” he said.

According to the president, this decision aligns with the public’s rejection of the Finance Bill, which he was scheduled to sign into law on Thursday.

Nationwide demonstrations, primarily organized by Kenya’s youthful population, the Gen-Z, have rocked several parts of the country since last week. The protests culminated on Tuesday when demonstrators stormed Parliament after lawmakers passed the controversial bill.

The violent scenes resulted in several deaths and injuries, prompting widespread condemnation and calls for restraint from both local and international leaders.

By Wednesday, businesses in Nairobi and other parts of the country were counting their losses, with many shops looted or burnt. In Nairobi, City Hall and the Supreme Court were set on fire before the blazes were extinguished, but many businesses in the Central Business District were not as fortunate, as mobs descended on them.

Since Tuesday, there has been mounting pressure from leaders, including former President Uhuru Kenyatta and Azimio coalition leader Raila Odinga, urging President Ruto not to sign the bill and to listen to the people instead. On Wednesday, President Ruto heeded these calls and announced that he was sending the bill back to Parliament for further amendments.

UN Secretary-General Antonio Guterres also expressed concerns about the violence in Kenya and urged restraint. “He is saddened by the reports of deaths and injuries, including those of journalists and medical personnel,” a statement from his office said.

Guterres emphasized the importance of upholding the right to peaceful demonstrations. “The Secretary-General urges the Kenyan authorities to exercise restraint and calls for all demonstrations to remain peaceful,” the statement added.

The unfolding events highlight the significant tension and unrest in Kenya as citizens voice their discontent with the controversial Finance Bill. The call for dialogue and peaceful resolution from international figures underscores the need for a measured approach to address the grievances and restore calm in the country.

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