From Struggling Entrepreneur to Protests and Austerity Measures: Navigating the Challenges of Kenya’s Debt Crisis

Francis Ochieng is struggling to cope with the devastation that his business in Nairobi has endured. During recent anti-government protests in Kenya, there was vandalism and looting that resulted in significant damage to his shop. Ochieng estimates he has lost close to $10,000 after his shop was set on fire, leaving him unsure of how to move forward. With a family to support, including a wife and school-going children, Ochieng is struggling to even put food on the table.

On June 26, 2024, Kenya’s President William Ruto announced that he would not sign the 2024 finance bill. This decision has complicated efforts to address Kenya’s heavy debt burden, which currently stands at 68% of GDP, exceeding the recommended 55% threshold set by the World Bank and the IMF. The IMF has emphasized the importance of Kenya meeting revenue targets to access additional funding. The withdrawal of support for the finance bill means that Kenya will now need to focus on cutting spending rather than raising revenues.

Ruto has indicated that he will implement austerity measures, beginning with cuts to the budget of the presidency. However, political analyst James Shikwati believes that these measures are not addressing deeper issues within Kenya. He argues that tax increases may still be on the table and that Ruto’s promises to support low-income individuals during his election campaign have backfired. Many young people expressed anger towards him as activists remain skeptical of government intentions and call for change in leadership.

The ongoing protests and unrest in Kenya have underscored the frustrations of the population and highlighted the urgent need for economic reforms to address the country’s challenges.

Despite facing financial difficulties due to vandalism and looting at his store during recent anti-government protests in Kenya, Francis Ochieng remains determined to find a way forward for himself and his family. With a wife and school-going children depending on him for their survival, Ochieng is struggling financially but refuses to give up hope.

Kenya’s President William Ruto recently announced that he would not sign the 2024 finance bill due to its failure to address current debt levels. This decision has led some analysts like James Shikwati