FT News Briefing Protests push Kenya to abandon tax rises
7 snips
Jun 27, 2024 JPMorgan's decision to add India's sovereign debt to its emerging markets index signals a surge in foreign investment. Meanwhile, violent protests in Kenya forced the president to scrap controversial tax hikes amidst public unrest. The discussion also turns to U.S. interests in Africa, focusing on the potential lifting of sanctions on a billionaire to secure access to vital minerals. The geopolitical landscape remains tense as the U.S. navigates its strategies against Chinese competition for critical resources.
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India's Debt Inclusion
- JP Morgan adds India's sovereign debt to its emerging markets index, expecting large foreign investments.
- This inclusion, while positive, may challenge India's central bank in managing market instability.
Kenya's Tax Bill Withdrawal
- Kenyan President William Ruto withdrew a tax bill after violent protests erupted, including storming the parliament.
- Ruto reversed his stance after initially labeling protestors as treasonous, demonstrating a response to public pressure.
Kenya's Economic Challenges
- Kenya's struggling economy, coupled with rising interest rates and reduced foreign investment, fueled public anger over the proposed tax increases on essential goods.
- Ruto's withdrawal highlights the government's challenging financial position, including high debt servicing costs and reliance on international loans.