Last Wednesday, Kenyan President William Ruto announced that he won’t sign into law a finance bill proposing new taxes. He made this decision a day after nationwide protests rocked the nation, as demonstrators stormed Parliament and at least 20 people were shot dead by security forces.
Why did the bill, which sought to raise funds to pay off the national debt, cause such an uproar? The primary reason, according to the protesters, was that it would place even greater economic hardship on an already struggling populace.
While that is certainly true, the ferocity of these demonstrations had much to do with how Mr Ruto and his colleagues in government have conducted themselves over the past two years. The President’s glamorous lifestyle has especially been an object of public indignation at a time when many families have struggled to put food on the table.
Last month, Mr Ruto was criticised for hiring a private jet on a visit to the US, with media reports alleging he had paid $1.5 million for it. He insisted the charter was paid for by “friends” and cost taxpayers less than $73,000, but to no avail.
On the issue of luxury, Mr Ruto has not been alone. Several of his cabinet colleagues and other officials have adopted his safari-style outfits with collarless jackets, designer watches and shoes. Recently, a close ally of the President, who was in court over questionable academic papers, donated $155,000 to a church fundraiser.
When the East African nation erupted into chaos, in response to the proposed tax hikes, it was such extravagance that fuelled the anger.
The Finance Bill 2024, a piece of legislation that intended to raise $2.7 billion in new levies to finance several social programmes, was a major point of contention. The squeezing of more taxes from the public is in line with fiscal reforms agreed with the International Monetary Fund, which wants Nairobi to slow down on international borrowing and raise money through taxation.
Kenya owes $80 billion in domestic and foreign public debt, accounting for almost 75 per cent of the nation’s entire economic output.
To make matters worse, Mr Ruto has been unable to cut government waste. In the now-withdrawn budget, for example, $12 million had been earmarked to furnish the President’s official residence.
Two years ago, Mr Ruto was the darling of the poor. He ran for president on a poor man’s ticket, telling his supporters that he once sold chicken to earn a living. In contrast, his opponent, Raila Odinga, was the son of Kenya’s first vice president, Jaramogi Odinga, and was backed by then president Uhuru Kenyatta, the son of Kenya’s first president, Jomo Kenyatta.
Mr Ruto positioned himself to the electorate as a Christian and a “prayerful” presidential candidate, and it worked. His supporters regarded his victory as a triumph over the entrenched political dynasties that the Kenyattas and Odingas have come to represent. Today, however, some of the churches that backed Mr Ruto have turned against him.
On the global stage, the President has always spoken with authority and is much liked in the West. When the US designated the East African nation as a non-Nato ally – as US President Joe Biden hosted Mr Ruto at the White House – it was not lost on observers that he was the first African leader in more than 15 years to make a state visit to the US.
But such achievements have meant little to ordinary Kenyans, many of whom take a dim view of Mr Ruto’s frequent travels abroad. By June, he had made 62 trips to 38 countries. According to the auditor general, in the financial year ending June 2023, his travel budget had stood at $10 million.
The punitive tax measures contained in the finance bill, it seems, represented the final straw. They led to the uprising by the youth, which makes up about 35 per cent of the Kenya’s population and bears the brunt of any economic austerity measures.
The skirmishes caught the National Intelligence Service by surprise, according to Deputy President Rigathi Gachagua. The demography, a mixture of young men and women daring the police and broadcasting their moves on social media, also surprised mainstream media outlets. At first, Mr Ruto regarded the protests as “treasonous” and its participants as “criminals”, before backing down.
During his election campaign, Mr Ruto had promised decent jobs to the youth. But as the debt burden continues to consume nearly a quarter of the government’s revenue in interest payments alone, most of these promises have waned. Recently, Mr Ruto was forced to use a World Bank loan to pay off a $500 million Eurobond, an indicator of the dire financial straits that the nation faces.
Another source of public anger has been the President’s inability to tame corruption. After taking office, his government stopped the high-level corruption cases that had been initiated by Mr Kenyatta. Mr Ruto said the cases had been politically instigated, but critics argue that by stopping these cases he had created new spaces of impunity within the government.
It’s important to point out that Kenya’s troubles did not start under the Ruto administration. The root of the debt problem goes back to the early 2000s, when the government borrowed heavily from international creditors to fund SMEs and finance infrastructure and agricultural projects. The failure to invest these loans judiciously has proved costly, as have a series of natural disasters, including the Covid-19 pandemic.
But Mr Ruto’s inability to deliver on promises of turning around the economy has made him the target of public ire. During the protests, one banner read: “When he is not flying, he is lying.” It is a sentiment that sums up how some Kenyans feel about the President today. And by withdrawing the contentious legislation, he has revealed his Achilles heel.
In a country where politics is organised along tribal lines, the protests will be a wake-up call to Mr Ruto to reorganise his politics – particularly having won the presidency with a slim majority of 300,000 votes – if he wants to secure re-election in 2027.
He will have his work cut out for him. The recent legislation has made him so unpopular that many Kenyans now call him “Zakayo” – the Swahili name for the Biblical tax collector Zacchaeus. The talk in Nairobi now is that all politicians who voted for the bill would be punished at the ballot box in three years’ time.
More broadly, the protests mark an important turning point in Kenyan politics, with a chastened executive now well aware of the limits of trying to bulldoze laws through Parliament.
Citizenship-by-investment programmes
United Kingdom
The UK offers three programmes for residency. The UK Overseas Business Representative Visa lets you open an overseas branch office of your existing company in the country at no extra investment. For the UK Tier 1 Innovator Visa, you are required to invest £50,000 (Dh238,000) into a business. You can also get a UK Tier 1 Investor Visa if you invest £2 million, £5m or £10m (the higher the investment, the sooner you obtain your permanent residency).
All UK residency visas get approved in 90 to 120 days and are valid for 3 years. After 3 years, the applicant can apply for extension of another 2 years. Once they have lived in the UK for a minimum of 6 months every year, they are eligible to apply for permanent residency (called Indefinite Leave to Remain). After one year of ILR, the applicant can apply for UK passport.
The Caribbean
Depending on the country, the investment amount starts from $100,000 (Dh367,250) and can go up to $400,000 in real estate. From the date of purchase, it will take between four to five months to receive a passport.
Portugal
The investment amount ranges from €350,000 to €500,000 (Dh1.5m to Dh2.16m) in real estate. From the date of purchase, it will take a maximum of six months to receive a Golden Visa. Applicants can apply for permanent residency after five years and Portuguese citizenship after six years.
“Among European countries with residency programmes, Portugal has been the most popular because it offers the most cost-effective programme to eventually acquire citizenship of the European Union without ever residing in Portugal,” states Veronica Cotdemiey of Citizenship Invest.
Greece
The real estate investment threshold to acquire residency for Greece is €250,000, making it the cheapest real estate residency visa scheme in Europe. You can apply for residency in four months and citizenship after seven years.
Spain
The real estate investment threshold to acquire residency for Spain is €500,000. You can apply for permanent residency after five years and citizenship after 10 years. It is not necessary to live in Spain to retain and renew the residency visa permit.
Cyprus
Cyprus offers the quickest route to citizenship of a European country in only six months. An investment of €2m in real estate is required, making it the highest priced programme in Europe.
Malta
The Malta citizenship by investment programme is lengthy and investors are required to contribute sums as donations to the Maltese government. The applicant must either contribute at least €650,000 to the National Development & Social Fund. Spouses and children are required to contribute €25,000; unmarried children between 18 and 25 and dependent parents must contribute €50,000 each.
The second step is to make an investment in property of at least €350,000 or enter a property rental contract for at least €16,000 per annum for five years. The third step is to invest at least €150,000 in bonds or shares approved by the Maltese government to be kept for at least five years.
Candidates must commit to a minimum physical presence in Malta before citizenship is granted. While you get residency in two months, you can apply for citizenship after a year.
Egypt
A one-year residency permit can be bought if you purchase property in Egypt worth $100,000. A three-year residency is available for those who invest $200,000 in property, and five years for those who purchase property worth $400,000.
Source: Citizenship Invest and Aqua Properties
Tips on buying property during a pandemic
Islay Robinson, group chief executive of mortgage broker Enness Global, offers his advice on buying property in today's market.
While many have been quick to call a market collapse, this simply isn’t what we’re seeing on the ground. Many pockets of the global property market, including London and the UAE, continue to be compelling locations to invest in real estate.
While an air of uncertainty remains, the outlook is far better than anyone could have predicted. However, it is still important to consider the wider threat posed by Covid-19 when buying bricks and mortar.
Anything with outside space, gardens and private entrances is a must and these property features will see your investment keep its value should the pandemic drag on. In contrast, flats and particularly high-rise developments are falling in popularity and investors should avoid them at all costs.
Attractive investment property can be hard to find amid strong demand and heightened buyer activity. When you do find one, be prepared to move hard and fast to secure it. If you have your finances in order, this shouldn’t be an issue.
Lenders continue to lend and rates remain at an all-time low, so utilise this. There is no point in tying up cash when you can keep this liquidity to maximise other opportunities.
Keep your head and, as always when investing, take the long-term view. External factors such as coronavirus or Brexit will present challenges in the short-term, but the long-term outlook remains strong.
Finally, keep an eye on your currency. Whenever currency fluctuations favour foreign buyers, you can bet that demand will increase, as they act to secure what is essentially a discounted property.
Specs
Engine: 51.5kW electric motor
Range: 400km
Power: 134bhp
Torque: 175Nm
Price: From Dh98,800
Available: Now
The Book of Collateral Damage
Sinan Antoon
(Yale University Press)
The five pillars of Islam
1. Fasting
2. Prayer
3. Hajj
4. Shahada
5. Zakat
MATCH INFO
Uefa Nations League
League A, Group 4
Spain v England, 10.45pm (UAE)
Hili 2: Unesco World Heritage site
The site is part of the Hili archaeological park in Al Ain. Excavations there have proved the existence of the earliest known agricultural communities in modern-day UAE. Some date to the Bronze Age but Hili 2 is an Iron Age site. The Iron Age witnessed the development of the falaj, a network of channels that funnelled water from natural springs in the area. Wells allowed settlements to be established, but falaj meant they could grow and thrive. Unesco, the UN's cultural body, awarded Al Ain's sites - including Hili 2 - world heritage status in 2011. Now the most recent dig at the site has revealed even more about the skilled people that lived and worked there.
'The Woman in the House Across the Street from the Girl in the Window'
Director:Michael Lehmann
Stars:Kristen Bell
Rating: 1/5
Kalra's feat
- Becomes fifth batsman to score century in U19 final
- Becomes second Indian to score century in U19 final after Unmukt Chand in 2012
- Scored 122 in youth Test on tour of England
- Bought by Delhi Daredevils for base price of two million Indian rupees (Dh115,000) in 2018 IPL auction
KILLING OF QASSEM SULEIMANI
The%20specs%20
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UAE currency: the story behind the money in your pockets
The candidates
Dr Ayham Ammora, scientist and business executive
Ali Azeem, business leader
Tony Booth, professor of education
Lord Browne, former BP chief executive
Dr Mohamed El-Erian, economist
Professor Wyn Evans, astrophysicist
Dr Mark Mann, scientist
Gina MIller, anti-Brexit campaigner
Lord Smith, former Cabinet minister
Sandi Toksvig, broadcaster
CONFIRMED%20LINE-UP
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How tumultuous protests grew
- A fuel tax protest by French drivers appealed to wider anti-government sentiment
- Unlike previous French demonstrations there was no trade union or organised movement involved
- Demonstrators responded to online petitions and flooded squares to block traffic
- At its height there were almost 300,000 on the streets in support
- Named after the high visibility jackets that drivers must keep in cars
- Clashes soon turned violent as thousands fought with police at cordons
- An estimated two dozen people lost eyes and many others were admitted to hospital
Thor: Ragnarok
Dir: Taika Waititi
Starring: Chris Hemsworth, Tom Hiddleston, Cate Blanchett, Jeff Goldblum, Mark Ruffalo, Tessa Thompson
Four stars
Company Profile
Name: Thndr
Started: 2019
Co-founders: Ahmad Hammouda and Seif Amr
Sector: FinTech
Headquarters: Egypt
UAE base: Hub71, Abu Dhabi
Current number of staff: More than 150
Funds raised: $22 million
Profile
Company: Justmop.com
Date started: December 2015
Founders: Kerem Kuyucu and Cagatay Ozcan
Sector: Technology and home services
Based: Jumeirah Lake Towers, Dubai
Size: 55 employees and 100,000 cleaning requests a month
Funding: The company’s investors include Collective Spark, Faith Capital Holding, Oak Capital, VentureFriends, and 500 Startups.
THREE
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KEY HIGHLIGHTS
Healthcare spending to double to $2.2 trillion rupees
Launched a 641billion-rupee federal health scheme
Allotted 200 billion rupees for the recapitalisation of state-run banks
Around 1.75 trillion rupees allotted for privatisation and stake sales in state-owned assets
The Settlers
Director: Louis Theroux
Starring: Daniella Weiss, Ari Abramowitz
Rating: 5/5
UFC%20FIGHT%20NIGHT%3A%20SAUDI%20ARABIA%20RESULTS
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Company%20Profile
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More from UAE Human Development Report:
BIGGEST CYBER SECURITY INCIDENTS IN RECENT TIMES
SolarWinds supply chain attack: Came to light in December 2020 but had taken root for several months, compromising major tech companies, governments and its entities
Microsoft Exchange server exploitation: March 2021; attackers used a vulnerability to steal emails
Kaseya attack: July 2021; ransomware hit perpetrated REvil, resulting in severe downtime for more than 1,000 companies
Log4j breach: December 2021; attackers exploited the Java-written code to inflitrate businesses and governments
