Economic Security Risk: Protests and Political Instability

Thousands of young Kenyans poured into the streets of Nairobi on June 25, protesting a newly passed finance bill they say burdens them with punishing taxes amid an already steep cost-of-living crisis. The demonstration turned chaotic when crowds breached the gates of Parliament, set part of the building on fire, and forced lawmakers to evacuate. In response, police opened fire, killing at least five people, according to multiple reports. Politico+2Al Jazeera+2 President William Ruto condemned the unrest as treasonous and mobilized the military to back up police in restoring order. Politico
Tensions had been simmering for days since the controversial Finance Bill was tabled. The tax plan would have introduced a broad range of levies — including a 16% VAT on bread, increased duties on cooking oil, and a 2.5% annual tax on motor vehicles — sparking widespread outrage, particularly among young Kenyans. Al Jazeera+2Al Jazeera+2 Protesters argue that these measures disproportionately hit ordinary citizens already struggling under inflation and stagnating incomes. Al Jazeera Even after some of the most unpopular items were amended out of the bill, the anger had already grown too large to contain. Al Jazeera
The fallout has been intense. Human rights groups and civil society are demanding an independent probe into the use of live ammunition and the shooting of unarmed protesters. The Guardian Churches, too, have weighed in, calling on political leaders to engage young people meaningfully and address long-term systemic issues rather than rely on force. World Council of Churches On the diplomatic front, several Western envoys expressed alarm over the violence and the reported abductions of demonstrators. Politico Meanwhile, President Ruto has reversed course: in a televised address, he announced that he would not sign the contentious finance bill and pledged to withdraw it. Al Jazeera+1
Looking ahead, the crisis could mark a turning point in Kenyan politics. With a visibly mobilized youth movement, calls for reform are likely to intensify, and the government must now find a way to rebuild trust. Analysts suggest that meaningful fiscal reform will need to go hand-in-hand with deeper structural changes — or risk facing sustained civil discontent.