Kenya Scraps Controversial Taxes Amid Nationwide Protests

Nationwide protests erupted in Kenya against proposed tax hikes aimed at addressing a $2.7 billion budget deficit. Riot police used tear gas and water cannons to disperse largely peaceful demonstrators in multiple cities. In response to public outcry, the government scrapped several controversial taxes, including a 16% VAT on bread, and taxes on motor vehicles, cooking oil, and mobile money transfers. President William Ruto, who has faced repeated protests since taking office, defended the need for tax hikes to reduce borrowing and achieve financial sustainability. Critics argue that the tax increases will exacerbate the cost of living and economic hardships. The International Monetary Fund has backed the government's need to boost revenues and reduce borrowing.