1 00:00:02,440 --> 00:00:06,760 Speaker 1: Bloomberg Audio Studios, podcasts, radio news. 2 00:00:09,039 --> 00:00:12,400 Speaker 2: The sound of live ammunition and tear guest canisters punctured 3 00:00:12,400 --> 00:00:16,000 Speaker 2: the air in Kennya's capital, Nairobi this week, as peaceful 4 00:00:16,000 --> 00:00:19,919 Speaker 2: protests turned bloody and a brutal crackdown left scores dead. 5 00:00:24,160 --> 00:00:27,480 Speaker 2: The cause plans to push through a raft of unpopular 6 00:00:27,560 --> 00:00:30,400 Speaker 2: tax hikes in a bid to generate billions of dollars 7 00:00:30,440 --> 00:00:38,120 Speaker 2: in additional revenue for the cash strapped country. In unprecedented 8 00:00:38,120 --> 00:00:42,879 Speaker 2: scenes on Tuesday, protesters stormed the Parliament building, battling police 9 00:00:42,920 --> 00:00:47,599 Speaker 2: firing live rounds. Kenya's President William Rutto accused criminals of 10 00:00:47,720 --> 00:00:49,800 Speaker 2: hijacking legitimate grievances. 11 00:00:50,080 --> 00:00:55,120 Speaker 1: Today's events mark a critical Tanning point on how we 12 00:00:55,280 --> 00:00:59,440 Speaker 1: respond to grieve threats to our national security. 13 00:01:00,040 --> 00:01:02,400 Speaker 2: But after the violence led to the deaths of at 14 00:01:02,520 --> 00:01:06,080 Speaker 2: least twenty three people, Ruto was forced into an about 15 00:01:06,120 --> 00:01:09,600 Speaker 2: face just twenty four hours later, pulling his support for 16 00:01:09,640 --> 00:01:14,160 Speaker 2: the contentious tax bill backed by the IMF, I concede I. 17 00:01:14,160 --> 00:01:17,319 Speaker 1: Will not sign the twenty twenty four finance. 18 00:01:18,319 --> 00:01:22,160 Speaker 2: On today's podcast, we'll discuss whether the Kenyan government is 19 00:01:22,240 --> 00:01:25,679 Speaker 2: stuck in an unwinnable fight having to choose between the 20 00:01:25,720 --> 00:01:30,600 Speaker 2: IMF and the streets. And as Ruto admits defeat on 21 00:01:30,640 --> 00:01:33,800 Speaker 2: these measures, could there still be more reforms to come 22 00:01:34,200 --> 00:01:39,280 Speaker 2: and will Kenya's economy be up for the challenge. I'm 23 00:01:39,319 --> 00:01:43,240 Speaker 2: Jennifer's Abasaja and this is the Next Africa Podcast, bringing 24 00:01:43,240 --> 00:01:46,120 Speaker 2: you one story each week from the continent, driving the 25 00:01:46,160 --> 00:01:51,680 Speaker 2: future of global growth with the context only Bloomberg can provide. 26 00:01:53,840 --> 00:01:56,720 Speaker 2: A lot has happened this week, and I'm delighted that 27 00:01:56,760 --> 00:02:00,760 Speaker 2: Bloomberg's Belaganga, who is based in Nairobi, is able to 28 00:02:00,840 --> 00:02:03,520 Speaker 2: join us and help guide us through what has really 29 00:02:03,560 --> 00:02:07,440 Speaker 2: been a momentous week for this country. Bellat, thanks so 30 00:02:07,520 --> 00:02:10,080 Speaker 2: much for being here. Let's start with the big vote 31 00:02:10,080 --> 00:02:13,120 Speaker 2: and also of course Tuesday scenes and the protests that 32 00:02:13,160 --> 00:02:16,840 Speaker 2: we saw. You've been following these very closely. Just describe 33 00:02:17,320 --> 00:02:18,200 Speaker 2: the scenes for us. 34 00:02:18,800 --> 00:02:21,359 Speaker 1: Tuesday was quite interesting, I think for the first time 35 00:02:21,680 --> 00:02:25,480 Speaker 1: I don't think of I remember seeing protesters making their 36 00:02:25,520 --> 00:02:29,959 Speaker 1: way into the parliament buildings and they took their protests 37 00:02:30,000 --> 00:02:34,720 Speaker 1: inside Parliament, literally inside the where the legislators sit, where 38 00:02:34,720 --> 00:02:38,680 Speaker 1: they make decisions, and they disrupted everything that the legislators 39 00:02:38,680 --> 00:02:43,520 Speaker 1: were doing. They broke windows, some firewalls started in some 40 00:02:43,680 --> 00:02:48,000 Speaker 1: points at Parliament. Within the Parliament compound, we had tear 41 00:02:48,080 --> 00:02:52,840 Speaker 1: gas canisters being launched by the security officers there. And 42 00:02:52,960 --> 00:02:56,440 Speaker 1: the most interesting thing is the protests against the finance bill, 43 00:02:56,560 --> 00:03:01,800 Speaker 1: which proposes higher taxes, has been led by organized and 44 00:03:01,960 --> 00:03:05,400 Speaker 1: led by gen zs. We're talking about people in the 45 00:03:05,440 --> 00:03:09,079 Speaker 1: ages between the ages of twenty and thirty, young people, 46 00:03:09,600 --> 00:03:14,399 Speaker 1: people who usually do not take an interest in politics. 47 00:03:14,600 --> 00:03:18,520 Speaker 1: They just ignore it completely. They don't even vote. If 48 00:03:18,520 --> 00:03:21,040 Speaker 1: you look at their voter participation in the last election, 49 00:03:22,000 --> 00:03:24,720 Speaker 1: it was like in the thirty percent, they didn't show up. 50 00:03:25,560 --> 00:03:28,960 Speaker 1: And for the first time it seems that they are 51 00:03:29,000 --> 00:03:32,880 Speaker 1: showing up and speaking loudly and saying, look, we don't 52 00:03:32,919 --> 00:03:33,560 Speaker 1: agree with this. 53 00:03:34,040 --> 00:03:37,280 Speaker 2: Why now Bella We describe, of course over the taxes 54 00:03:37,320 --> 00:03:40,440 Speaker 2: that the president is trying to implement, But why is 55 00:03:40,480 --> 00:03:44,040 Speaker 2: it that young people now are so engaged and so enraged. 56 00:03:44,920 --> 00:03:47,680 Speaker 1: If you look at the unemployment rate in Changite over 57 00:03:47,800 --> 00:03:52,240 Speaker 1: fifty percent, so we have people graduating from universities and 58 00:03:52,320 --> 00:03:55,640 Speaker 1: they don't have jobs, they don't have opportunities to work. 59 00:03:56,040 --> 00:03:58,800 Speaker 1: If you look at the gen zs, many of them 60 00:03:59,000 --> 00:04:02,520 Speaker 1: are in the gig economy. So they do work online 61 00:04:03,160 --> 00:04:05,160 Speaker 1: like call centers used to be our thing when I 62 00:04:05,240 --> 00:04:07,840 Speaker 1: was around that age a couple of years back, but 63 00:04:08,040 --> 00:04:11,200 Speaker 1: now they are doing in the gig economy. And so 64 00:04:11,280 --> 00:04:15,280 Speaker 1: now when the government wants to introduce taxes online, which 65 00:04:15,280 --> 00:04:18,279 Speaker 1: is a platform that young people have used to create 66 00:04:18,320 --> 00:04:23,760 Speaker 1: empliment for themselves, it tooks emotions, right, Bella. 67 00:04:23,800 --> 00:04:27,960 Speaker 2: I wonder if someone who is born and raised in Kenya, 68 00:04:28,120 --> 00:04:30,560 Speaker 2: I imagine you have people that you know who have 69 00:04:30,640 --> 00:04:33,560 Speaker 2: potentially been participating. I mean, what have the scenes this 70 00:04:33,680 --> 00:04:37,479 Speaker 2: week been like for you to watch? And even the 71 00:04:37,520 --> 00:04:39,480 Speaker 2: messages that we're hearing from the young people. 72 00:04:40,040 --> 00:04:42,279 Speaker 1: I think I have to say it's been very interesting 73 00:04:42,360 --> 00:04:46,559 Speaker 1: because many of the protests were organized on social media, 74 00:04:46,960 --> 00:04:52,120 Speaker 1: so on Twitter, Instagram, all these platforms social media. I've 75 00:04:52,160 --> 00:04:54,880 Speaker 1: not seen that before because many of them were organized 76 00:04:55,080 --> 00:04:59,080 Speaker 1: by and led by the opposition politicians. They time around 77 00:04:59,160 --> 00:05:03,080 Speaker 1: young people, we actually making videos and telling the older 78 00:05:03,360 --> 00:05:07,320 Speaker 1: political folk that look, don't show up, thank you for 79 00:05:07,400 --> 00:05:16,760 Speaker 1: everything you've done, but we got this now. And when 80 00:05:16,800 --> 00:05:19,600 Speaker 1: you see them in the streets, they would show up singing, 81 00:05:19,880 --> 00:05:24,440 Speaker 1: chanting songs, dancing. I remember last week there's a day 82 00:05:24,640 --> 00:05:25,560 Speaker 1: they participated. 83 00:05:25,640 --> 00:05:26,880 Speaker 2: They were in running. 84 00:05:26,640 --> 00:05:30,799 Speaker 1: Battles the whole day with security forces, singing, chanting, dancing, 85 00:05:30,920 --> 00:05:40,440 Speaker 1: talking to the security forces. We've seen people get shot, 86 00:05:40,680 --> 00:05:44,880 Speaker 1: people have died from brutal police force cracking down on 87 00:05:44,920 --> 00:05:48,080 Speaker 1: these young people, many of who are not armed, and 88 00:05:48,360 --> 00:05:52,039 Speaker 1: they just they're on another level. I saw a clip 89 00:05:52,080 --> 00:05:55,360 Speaker 1: on social media and one of the protesters was hit 90 00:05:55,440 --> 00:05:57,840 Speaker 1: by tear gas or it was affected by tear gas, 91 00:05:57,960 --> 00:06:00,760 Speaker 1: and they walked up to the and also obviously and 92 00:06:00,800 --> 00:06:03,600 Speaker 1: it's so paramilitary and ask excuse. 93 00:06:03,200 --> 00:06:04,960 Speaker 2: Me, what are you doing? Why are you hitting me? 94 00:06:05,120 --> 00:06:08,360 Speaker 1: Like they want to sit there, have a conversation, Let's 95 00:06:08,360 --> 00:06:11,200 Speaker 1: talk about what you're doing. So that's something that's never 96 00:06:11,240 --> 00:06:14,839 Speaker 1: been seen before, because in the past, I remember my parents' 97 00:06:15,160 --> 00:06:20,440 Speaker 1: generation would see security forces and immediately run for their lives. 98 00:06:21,000 --> 00:06:24,440 Speaker 1: This generation, they want to have a conversation and ask 99 00:06:24,520 --> 00:06:27,680 Speaker 1: you and question the security forces why are you doing 100 00:06:28,200 --> 00:06:30,400 Speaker 1: Some of them I saw some clips of some of 101 00:06:30,440 --> 00:06:32,159 Speaker 1: them saying we're doing this for you. 102 00:06:34,360 --> 00:06:37,320 Speaker 2: When we come back, we'll look at how Ruto reacted 103 00:06:37,800 --> 00:06:44,039 Speaker 2: and what happens next. Welcome back. So we just heard 104 00:06:44,080 --> 00:06:47,760 Speaker 2: Bella describing the scenes on Tuesday, but what happened Wednesday 105 00:06:47,920 --> 00:06:51,159 Speaker 2: was almost just as dramatic as what we saw from 106 00:06:51,200 --> 00:06:54,599 Speaker 2: the previous day. Let's just start with the messaging that 107 00:06:54,640 --> 00:06:57,400 Speaker 2: we heard from the President Bella. Take us to Tuesday 108 00:06:57,440 --> 00:07:00,080 Speaker 2: evening then, because the President then went on TV to 109 00:07:00,080 --> 00:07:03,360 Speaker 2: address the public. What was his messaging at that point. 110 00:07:04,320 --> 00:07:07,800 Speaker 1: So what it did is he labeled the Tuesday protests 111 00:07:07,880 --> 00:07:12,240 Speaker 1: as treason ERUs and said they were carried out by criminals. 112 00:07:12,880 --> 00:07:15,640 Speaker 1: And then he deployed the military in attempts to stop 113 00:07:15,680 --> 00:07:20,680 Speaker 1: the nationwide anti government protests on Tuesday. And this has 114 00:07:20,720 --> 00:07:22,760 Speaker 1: been questioned by the Los Society of king which is 115 00:07:22,760 --> 00:07:26,320 Speaker 1: an association made up of professionals in the legal space, 116 00:07:27,000 --> 00:07:30,560 Speaker 1: went to the High Court saying that look, the military 117 00:07:30,600 --> 00:07:35,920 Speaker 1: can't be deployed without the approval of Parliament. And by 118 00:07:35,960 --> 00:07:40,760 Speaker 1: that time, seventeen people had died from the demonstrations because 119 00:07:40,760 --> 00:07:45,120 Speaker 1: of police firing life ammunition at the demonstrators. 120 00:07:44,720 --> 00:07:48,440 Speaker 2: Which made the next part of the story Bella that 121 00:07:48,560 --> 00:07:52,480 Speaker 2: much more interesting questionable. I don't really know how to 122 00:07:52,520 --> 00:07:56,320 Speaker 2: describe it. We saw a complete about face from the President. 123 00:07:56,520 --> 00:07:57,560 Speaker 2: What did he say? 124 00:07:57,800 --> 00:08:02,280 Speaker 1: So, he said he's withdrawing the tax bill, the finance bill, 125 00:08:03,320 --> 00:08:06,240 Speaker 1: So he withdrew support for the finance bill. That had 126 00:08:06,400 --> 00:08:10,360 Speaker 1: contentious tax proposals and then he called on lawmakers to 127 00:08:10,440 --> 00:08:15,320 Speaker 1: scrap it. How do you reflected on the continuing conversation 128 00:08:15,480 --> 00:08:18,280 Speaker 1: around the content of the Finance Bill twenty twenty four 129 00:08:19,400 --> 00:08:23,520 Speaker 1: and listening truly to the people of Trainer who have 130 00:08:23,680 --> 00:08:26,960 Speaker 1: said loudly that they will nothing to do with this 131 00:08:27,640 --> 00:08:31,760 Speaker 1: Finance Bill twenty twenty four. But Article one fifteen of 132 00:08:31,840 --> 00:08:38,400 Speaker 1: the Constitution does not allow him to essentially delete a bill. 133 00:08:38,600 --> 00:08:40,720 Speaker 1: All he can do is set it back to Parliament 134 00:08:41,080 --> 00:08:42,640 Speaker 1: with recommendations. 135 00:08:43,240 --> 00:08:47,960 Speaker 2: What was the reaction when he made these comments on Wednesday? 136 00:08:48,640 --> 00:08:51,600 Speaker 2: Is it enough do you think to calm the situation down? 137 00:08:52,200 --> 00:08:55,120 Speaker 2: Or are the young people or are there still more 138 00:08:55,160 --> 00:08:56,839 Speaker 2: protests that are expected so. 139 00:08:56,800 --> 00:09:01,080 Speaker 1: The young people are not buying it. There are protests 140 00:09:01,160 --> 00:09:04,320 Speaker 1: today in parts of the country and they're calling for 141 00:09:04,760 --> 00:09:08,920 Speaker 1: him to step down. They're also sharing notes on social media. 142 00:09:09,040 --> 00:09:12,120 Speaker 1: They had Twitter spaces yesterday with about one hundred thousand 143 00:09:12,760 --> 00:09:16,559 Speaker 1: listeners and they want him to step down because they 144 00:09:16,559 --> 00:09:19,720 Speaker 1: don't agree with whatever he proposed on Tuesday. 145 00:09:20,400 --> 00:09:24,600 Speaker 2: What does this all mean for the President Bella because 146 00:09:25,760 --> 00:09:28,000 Speaker 2: this is he's only a few years into his term, 147 00:09:28,080 --> 00:09:32,320 Speaker 2: right and he's really being dealt quite a blow that 148 00:09:32,400 --> 00:09:35,679 Speaker 2: he probably couldn't have anticipated. And now it's really ballooned 149 00:09:35,720 --> 00:09:38,880 Speaker 2: to a place where everyone is paying attention to what 150 00:09:39,040 --> 00:09:41,280 Speaker 2: his next move is and what is going to happen 151 00:09:42,040 --> 00:09:43,520 Speaker 2: with the economy moving forward. 152 00:09:43,720 --> 00:09:46,680 Speaker 1: It remains to be seen because there's never been such 153 00:09:46,760 --> 00:09:51,520 Speaker 1: kind of opposition, especially from the young voters, from the 154 00:09:51,559 --> 00:09:55,040 Speaker 1: young generation. These are people who grew up watching their 155 00:09:55,120 --> 00:09:59,360 Speaker 1: parents go through the promulgation of the new constitution. These 156 00:09:59,360 --> 00:10:04,319 Speaker 1: are people who grew up watching elections, presidential elections being contested, 157 00:10:04,480 --> 00:10:07,520 Speaker 1: some of them won, and then now they want to 158 00:10:07,600 --> 00:10:11,480 Speaker 1: have a different kind of political conversation, which changes the 159 00:10:11,559 --> 00:10:15,720 Speaker 1: whole political scenery in Kenya. So it's not yet care 160 00:10:15,760 --> 00:10:18,640 Speaker 1: what's going to happen is every day he just gets surprised, Oh, 161 00:10:18,840 --> 00:10:20,120 Speaker 1: he's deployed the military. 162 00:10:20,320 --> 00:10:21,760 Speaker 2: Can you do that? Okay? 163 00:10:22,040 --> 00:10:25,480 Speaker 1: And then next he's withdrawn a bill. Okay, what does 164 00:10:25,520 --> 00:10:29,120 Speaker 1: that mean? So we're finding out every day like everything 165 00:10:29,160 --> 00:10:32,360 Speaker 1: new is just coming up. But the gen zs they're 166 00:10:32,400 --> 00:10:35,760 Speaker 1: not impressed, they're not backing down. They're still out on 167 00:10:35,800 --> 00:10:37,720 Speaker 1: the streets demonstrating. 168 00:10:37,360 --> 00:10:41,640 Speaker 2: Does Rutel survive this politically? You know, does he get 169 00:10:41,640 --> 00:10:43,920 Speaker 2: through this? Is it too early to tell what do 170 00:10:43,920 --> 00:10:44,280 Speaker 2: you think? 171 00:10:44,440 --> 00:10:47,400 Speaker 1: It remains to be seen. Look, he's on his first term, 172 00:10:47,480 --> 00:10:50,640 Speaker 1: he's done two years out of five years in his 173 00:10:50,760 --> 00:10:56,000 Speaker 1: first term. The gen zs are already preparing to register 174 00:10:56,080 --> 00:10:59,640 Speaker 1: as voters. Remember the last election they did not participate, 175 00:11:00,080 --> 00:11:04,480 Speaker 1: daid Away and God their argument was what has changed? 176 00:11:04,960 --> 00:11:05,760 Speaker 2: What is new? 177 00:11:06,160 --> 00:11:09,120 Speaker 1: But this time they're talking about you will see us 178 00:11:09,160 --> 00:11:11,520 Speaker 1: in twenty twenty seven, which is when he writes for 179 00:11:11,640 --> 00:11:15,280 Speaker 1: his second term. So it will be interesting to see 180 00:11:16,040 --> 00:11:18,600 Speaker 1: how twenty twenty seven will pan out. Because these are 181 00:11:18,640 --> 00:11:21,840 Speaker 1: people who are over eighteen, which means they are adults, 182 00:11:21,840 --> 00:11:24,920 Speaker 1: which means they can now vote. So that changes a 183 00:11:24,960 --> 00:11:25,800 Speaker 1: whole dynamic. 184 00:11:26,120 --> 00:11:28,600 Speaker 2: And thanks so much to Bella Ganga for all of 185 00:11:28,600 --> 00:11:31,040 Speaker 2: our reporting. You can keep up to date with all 186 00:11:31,080 --> 00:11:34,760 Speaker 2: of the teams coverage from across the region on Bloomberg News. 187 00:11:35,559 --> 00:11:38,600 Speaker 2: As we've been discussing, the scenes this week have all 188 00:11:38,640 --> 00:11:42,000 Speaker 2: the makings of a twenty first century protest, but they 189 00:11:42,040 --> 00:11:46,319 Speaker 2: also clearly represent a shift for the president's own political future. 190 00:11:47,080 --> 00:11:50,079 Speaker 2: How he navigates it will have implications not just for him, 191 00:11:50,120 --> 00:11:53,240 Speaker 2: but also for many of the other countries watching the 192 00:11:53,280 --> 00:11:56,960 Speaker 2: scenes in Kenya, but also potentially also struggling to make 193 00:11:57,000 --> 00:12:02,840 Speaker 2: their own tough decisions. This program was produced by Adrian Bradley. 194 00:12:03,320 --> 00:12:05,600 Speaker 2: If you like the podcast, don't forget to comment and 195 00:12:05,720 --> 00:12:10,559 Speaker 2: subscribe wherever you listen to your podcasts, I'm Jennifer's Abasaja. 196 00:12:10,720 --> 00:12:12,079 Speaker 2: Thanks as always for listening