Super User
Here’s the latest as Israel-Hamas war enters Day 284
Israel allows UN to bring in more equipment amid Gaza lawlessness
The United Nations said on Monday that it will start bringing in more armored vehicles and personal protection equipment for its humanitarian aid operations in the Gaza Strip after receiving approval from Israeli authorities.
The approval was in response to a U.N. letter sent to Israel last month on safety and security in Gaza, said Scott Anderson, deputy humanitarian coordinator for the Occupied Palestinian Territory, as the war between Israel and Palestinian militants Hamas enters its tenth month and law and order has broken down.
The U.N. has long complained of obstacles to getting aid into Gaza - Israel inspects and approves all trucks - and says it is also struggling to distribute aid amid "total lawlessness" within the enclave of 2.3 million people, where a global hunger monitor last month said there is a high risk of famine.
Anderson said the U.N. was due to start bringing more armored vehicles and protection equipment into Gaza on Tuesday.
"Some communications equipment has also been approved," he told reporters, like hand-held radios, but added that discussions are still continuing on a U.N. request for stable internet access.
The U.N. has said it wants communications that did not rely on cell phone towers because they were not reliable. However, Israeli authorities have security concerns about what Hamas could do if it accessed satellite internet service.
'CRIME FAMILIES'
Anderson said the U.N. needed to bring in aid in the right quantity and quality, but several factors "continue to stand in our way." He listed problems including restrictions on movement, aid worker safety, unpredictable working hours, communications challenges and a lack of fuel.
"And we've seen a complete breakdown of law and order and we've seen essentially what are crime families preventing the free movement of aid into Gaza to assist people," he said.
"The truck drivers that we use have been regularly threatened or assaulted ... they've become less and less willing, understandably, to move assistance from the border crossings to our warehouses and then onto people that are in need," Anderson said.
He said the U.N. was getting between 25 and 70 aid trucks a day into northern Gaza, but there was no commercial access.
Anderson said in southern Gaza "we've been barely able to hit 100 trucks on a good day over the last week because of law and order problems," but that commercial deliveries were doing a little better "but they pay essentially protection money to the families in the south and they also have armed guards."
Aid officials say about 600 trucks of humanitarian and commercial supplies are needed in Gaza daily to meet the needs of the population.
He said the U.N. was "in talks with everybody about trying to get some sort of police force established" and in the meantime was working with the families that are hindering aid deliveries to try and address the problem.
"It's a few families that are trying to take advantage of this opportunity and that's why I'm confident if we get police back at work that they can address the issue," Anderson said.
Reuters
What to know after Day 873 of Russia-Ukraine war
WESTERN PERSPECTIVE
Ukraine's mobilisation campaign picks up despite faltering enthusiasm
Seeing the military patrol handing out call-up papers on the outskirts of Kyiv, one man slipped into a nearby store. Another refused to even stop for the officers. Others, however, quietly obliged.
While men may be coming round to Ukraine's ramped-up mobilisation drive to replenish troop numbers more than 28 months since Russia's invasion, they are less eager to fight than before, said a draft officer, who uses the call sign "Fantomas".
"Now, as far as I know, most of the queues (at draft offices) are people who want to obtain some sort of exemption (from fighting)," said the 36-year-old, who was accompanied by Reuters on a recent draft patrol in the Ukrainian capital.
The combat veteran is on the front lines of the effort to redouble the draft despite waning public enthusiasm for wartime service as military analysts describe regenerating troop manpower as one of Kyiv's central battlefield challenges.
President Volodymyr Zelenskiy lowered the draft age to 25 from 27 in April and signed off on an overhaul of the mobilisation process that entered force in May, obliging men under 60 to renew their personal data at draft offices or online.
Though recruitment numbers remain shrouded in wartime secrecy, some political and military officials have said the changes, including a campaignto increase voluntary recruitment, have got the mobilisation effort back on track after two months.
The Ukrainian military told Reuters in a written statement that the conscription rate had more than doubled in May and June compared to the previous two months, without providing the figures.
Spokesperson Bohdan Senyk described that as a "positive trend". The average age of a mobilised soldier remained unchanged at around 40.
DEMOBILISATION
Strengthened by long-delayed Western aid, Ukraine's forces have struggled for months to hold the line against Russian troops inching forward in the east.
Many weary troops are desperate to be replaced after more than two years of virtually non-stop service with no clarity on when they will be demobilized from an armed forces of around 1 million.
Asked about a figure of 200,000 additional troops cited in a German newspaper, Roman Kostenko, secretary of parliament's national defence committee estimated that the military could enlist that many by the year's end if the process continued at its current pace.
That, he said, could allow Ukraine to consider legislation to demobilize some troops, though the interior minister warned doing so without replacing a proportional share of them could weaken the front.
Mathieu Boulègue, a defence analyst for the Washington-based Center for European Policy Analysis, said the 200,000 estimate was encouraging but that the more critical task would be training them and distributing them to the front correctly.
Ukraine needs to "invest human capital smartly and efficiently where it is needed. Because in as much as you can get anyone to drive a truck or clean toilets, you can't get effective warfighters that easily," he said.
Russia, meanwhile, is recruiting around 30,000 troops per month for its war effort while suffering "very high" losses, a senior NATO official said on Tuesday. He added that Moscow lacked the munitions and troops to start a major offensive.
PUBLIC MISGIVINGS
Since the mobilisation overhaul, some draft offices have struggled to cope with the influx of men who have come to register or update their data by the July 16 deadline.
"More people are coming than we are able to accept," said a deputy head of the draft office where Fantomas works. "Sometimes processing drags on to 1 o'clock at night."
The official, who requested anonymity, echoed Fantomas and said a "very, very big" portion of men were seeking exemptions, though he insisted things were on track.
"We're fulfilling our assigned tasks. I wouldn't say to 100%, but not bad."
Reports of draft corruption and social media footage of scuffles between recruiters and citizens soured the public mood in the lead-up to the springtime rule changes.
In an April survey commissioned by public broadcaster Suspilne, around 50% of Ukrainians said they believed mobilisation was going poorly, and 60% said they had a negative perception of draft offices.
Facing public opposition, lawmakers stopped short of pushing through more severe sanctions against draft-dodgers as part of the overhaul.
Fantomas, who was wounded in eastern Ukraine last year, said 70% of his interactions with people he approaches on the street are positive.
He and other military officials have said conflicts such as those captured on film are rare, often torn out of context and exploited by pro-Russian accounts to discredit recruiters, but have been successful in blunting enthusiasm.
He admitted he had once been attacked on patrol, but said he refused to fight back for fear of being caught on camera.
"The one part where I would be defending myself would make it into a video, and only that would be made to go viral."
RUSSIAN PERSPECTIVE
Russian air defenses down Ukrainian MiG-29 fighter jet, 36 UAVs over past day
Russian air defense forces shot down a Ukrainian MiG-29 fighter jet and 36 unmanned aerial vehicles (UAVs) over the past day in the special military operation in Ukraine, Russia’s Defense Ministry reported on Monday.
"Air defense capabilities shot down a Ukrainian Air Force MiG-29 aircraft, 36 unmanned aerial vehicles and five rockets of the US-made HIMARS multiple launch rocket system," the ministry said in a statement.
Russia’s Battlegroup North strikes four Ukrainian brigades in Kharkov area over past day
Russia’s Battlegroup North repelled a Ukrainian army attack and inflicted casualties on four enemy brigades in the Kharkov area over the past day, the ministry reported.
"Battlegroup North units inflicted damage on manpower and equipment of the Ukrainian army’s 92nd assault, 82nd air assault, 36th marine infantry and 13th National Guard brigades in areas near the settlements of Volchansk, Liptsy, Tikhoye and Volchanskiye Khutora. In addition, they repelled an attack by two assault groups of the Ukrainian army’s 71st jaeger brigade," the ministry said.
The Ukrainian army’s losses in that frontline area over the past 24 hours amounted to 200 personnel, three tanks, two pickup trucks, two US-made 155mm M777 howitzers, a US-manufactured 155mm M198 howitzer, a US-made AN/TPQ-64 counterbattery radar station and a Nota electronic warfare system, it specified.
Reuters/Tass
Where will the AI super cycle lead? - Dambisa Moyo
The current pace of advances in generative artificial intelligence makes it difficult to forecast how the technology will affect the economy, business, and society. Nonetheless, it already seems clear that the new AI applications will produce a narrow cohort of winners and lead to a smaller workforce, confronting governments with big policy challenges.
Consider how AI will affect the three key components of growth: capital, labour, and productivity. In terms of capital, the massive volume of investment required to power AI innovations ensures that there will be a smaller, more concentrated set of winners. Big Tech firms with monopolies in their respective markets are the only ones that can afford the enormous costs associated with developing, training, and powering large language models (LLMs).
Most of these costs come from running high-end graphics processing units (GPUs), and from powering and cooling enormous data centers. Sam Mugel, the chief technology officer of Multiverse, estimates that training the next generation of LLMs will soon cost at least $1 billion. In 2023 alone, the Magnificent Seven – the top technology companies in the United States –allocated a combined $370 billion to research and development. That is roughly equal to the European Union’s total R&D budget (counting both businesses and the public sector).
With respect to labour, it is too early to anticipate the winners and losers, or how the gains and losses associated with AI will be distributed across the economy. While a 2023 report from Goldman Sachs estimated that AI could “expose the equivalent of 300 million full-time jobs to automation,” a World Economic Forum survey of 803 companies points to a much lower net loss, owing to job creation related to investment in the green transition and climate-change adaptation.
In any case, many fear that AI will contribute to long-term structural unemployment, creating a jobless class that will include both skilled and unskilled workers. But while the projections above provide a baseline of what might occur, there is ample scope to refine our thinking on the issue. After all, the scale of the problem will depend on which jobs are lost at different points of the AI value chain.
We have not yet seen what job losses at one link in the chain will mean elsewhere in the technology sector, let alone the broader economy. The impact on jobs could vary widely as we move from chip manufacturers, AI infrastructure, and AI applications to sectors such as health care, education, and telecommunications – all of which are poised to benefit from AI innovations. At the technology’s base, there is already enormous growth and job creation as chip manufacturers (such as Nvidia) build fabrication facilities and invest in the production capacity that will drive the AI revolution.
It is less clear how many jobs will be created or lost elsewhere, because no one can predict all the ways a new technology will be used, or what knock-on effects it may have. Early indications of AI’s impact on long-term efficiency and productivity gains are encouraging – at least for those workers who will still have jobs. For example, a 2023 studyof 5,000 workers by Erik Brynjolfsson, Danielle Li, and Lindsey R. Raymond found that AI tools boosted worker productivity by 14%, on average, and by 34% for new and low-skilled workers.
Technological advances have a long track record of enhancing global connectivity in trade and telecommunications, expanding access to public goods like health care and education, driving innovation, improving living standards, and ultimately powering broad-based economic growth. There is no reason to think that AI will not do the same.
Moreover, AI will likely diffuse across the wider economy faster than previous technologies did, which means that AI-related productivity and efficiency gains could happen sooner rather than later. Earlier general-purpose technologies (such as the steam engine, electrification, and personal computers) required vast outlays to build the underlying infrastructure. It took more than 40 years for electricity to become widely accessible in the first half of the twentieth century, and it took roughly a decade for smartphones to surpass 90% adoption in the 2010s. AI, by contrast, can be deployed through existing digital platforms and devices.
The upshot is that the AI super cycle will likely drive productivity gains and stronger economic growth – to the tune of $16 trillion globally by 2030, in PwC’s forecast. But these gains will accrue largely to the owners of capital, and less so to a potentially shrinking labour force. In an era of less labour-intensive growth, many companies and industries will adapt their business models – namely, by increasing the ratio of capital to employment – and governments will need to reassess tax and welfare policies.
If greater economic gains are flowing to the owners of capital, taxes will need to change accordingly. For example, a much higher corporate tax rate may be necessary to capture the excess profits generated by automation and a smaller workforce. With respect to welfare, the threat of rising structural unemployment from AI will reinvigorate debates about hitherto radical proposals such as a universal basic income.
We must reflect on AI’s effect on inequality both within countries – between capital and labour – and among countries. A widening gap between technology leaders, such as the US and China, and the rest of the world – particularly the poorest economies – bodes ill for an already-fraught geopolitical environment.
Project Syndicate
The No. 1 question to ‘always’ ask in a job interview, from a LinkedIn career expert
The final minutes of a job interview — when the interviewer is done with their questions and opens up the floor — is time you don’t want to waste.
Asking smart, thoughtful questions can give you an edge over other candidates and help you decide whether a role is the right fit for you.
There’s one question, in particular, that you should “always” ask in a job interview, says LinkedIn career expert Andrew McCaskill.
“What does success look like to you in the first 90 days of this role?”
By asking how success is measured within the team or company, you’re demonstrating that you’re proactive, and someone who wants to learn the skills needed to excel in the role, McCaskill explains.
The first 90 days of a new position is the most common timeframe employers use to assess your fit for the job and company culture, McCaskill adds, so it’s a helpful reference point to include — otherwise, the question might feel too broad.
“It cues to the interviewer that you’re curious, and really thinking about how you can help them solve whatever challenges they’re facing at the moment,” he says.
With this question, you’ll better understand what kind of learning curve you’ll face and how your performance will be evaluated.
The interviewer’s response could make you feel more confident about the role or uncover some red flags.
If the hiring manager avoids spelling out the specific tasks and responsibilities of the role or is vague about scheduling and expectations for working overtime, “those could be signs that a job is high-stress,” McCaskill explains.
This question can also help you prepare for any follow-up interviews.
“It gives you a vantage point into what skills and traits the employer is prioritizing in hiring for this role, and what language they use to describe their ideal candidate, so you can mirror it,” says McCaskill. “It helps you get to the very heart of what they’re looking for.”
CNBC
NNPC’s stake in Dangote Refinery reduces to 7.2 percent
Aliko Dangote, Africa’s richest person and Chairman of Dangote Group, announced on Sunday that the Nigerian National Petroleum Company (NNPC) Limited's stake in the Dangote Petroleum Refinery has dropped significantly from 20 percent to 7.2 percent. Speaking during a press briefing at the refinery in Lagos, Dangote attributed the reduction to NNPC's failure to pay the balance of their share, which was due in June.
“NNPC no longer owns a 20 percent stake in the Dangote refinery. They were meant to pay their balance in June, but have yet to fulfill the obligations. Now, they only own a 7.2 percent stake in the refinery,” Dangote stated.
In September 2021, NNPC acquired a 20 percent interest in the refinery for $2.76 billion. However, the balance of $1.76 billion, which was supposed to be paid upon completion of the refinery project or at an agreed date, remains unpaid. NNPC's investment was held by NNPC Greenfield, a subsidiary created for this purpose.
Further details revealed that the national oil company was expected to supply 300,000 barrels of crude per day to the refinery, backed by a $3.3 billion loan from Afreximbaank, to be repaid with crude oil.
In January, the global Extractive Industry Transparency Initiative (EITI) raised concerns about NNPC's stake in the refinery, highlighting the need for clarity on interest rates, repayment schedules, and valuation of the crude-backed loans. Despite NNPC joining EITI in 2019 to enhance transparency, questions about its financial dealings remain.
Meanwhile, the Dangote refinery, which commenced production on January 12, is increasing its output of Premium Motor Spirit (PMS), commonly known as petrol. Sales to local distributors are expected to begin in August. The refinery is projected to produce 500,000 barrels per day (bpd) by August, 550,000 bpd by the end of the year, and reach its full capacity of 650,000 bpd by the first quarter of 2025.
Additionally, during the briefing, Dangote announced plans to list the refinery’s fertilizer and petrochemical business in the first quarter of 2025.
UK court upholds £43m award in favour of Nigeria, dismisses P&ID appeal
A court of appeal in the United Kingdom (UK) has dismissed the appeal of Process & Industrial Development (P&ID) on a previous judgment halting the enforcement of its $11 billion award against Nigeria.
In a unanimous decision, Lord Justice Snowden, the lead judge, permitted P&ID to appeal the judgment but dismissed the appeal.
The two other judges are Lord Justice Fraser and Julian Flaux.
BACKGROUND
P&ID had entered into a deal in 2010 to build a gas processing plant in Calabar, Cross River state, but the company said the agreement collapsed because the Nigerian government did not fulfil its end of the bargain.
The Nigerian government alleged that the gas deal was a scam conceived to defraud the country.
But P&ID denied the allegation and accused the Nigerian government of “false allegations and wild conspiracy theories”.
Consequently, P&ID took legal recourse and secured an arbitral award against the country.
On January 31, 2017, a tribunal ruled that Nigeria should pay P&ID $6.6 billion as damages, as well as pre and post-judgment interest at seven percent, which later amounted to $11 billion.
In October 2023, Robin Knowles, justice of the commercial courts of England and Wales, halted the enforcement of the award by upholding Nigeria’s prayer that it was obtained by fraud and in violation of section 68 of the English Arbitration Act 1996.
The judge found that P&ID paid bribes to Nigerian officials involved in the drafting of the gas supply and processing agreement (GSPA) in 2010.
He also found that P&ID was illegally in possession of Nigeria’s privileged legal documents during the arbitration hearings.
The judge ordered that the company pay £43 million in compensation to Nigeria as legal fees and disbursements.
THE CONTENTIOUS ISSUES IN THE APPEAL
The judgment of the UK court of appeal was delivered on Friday.
In a copy of the judgment published on the UK judiciary website, one of the issues raised in the P&ID appeal bordered on whether the lower court was wrong to order the £43 million legal cost to be paid in British pound sterling and not in naira.
The company argued that Nigeria funded its legal services by exchanging naira from its consolidated revenue fund.
“The second issue (which is only reached if this Court has jurisdiction and grants permission to appeal) is whether the Judge was right to order P&ID to pay Nigeria’s costs in sterling,” part of the court judgment reads.
“Although Nigeria was billed by its English lawyers in sterling and paid them in sterling, P&ID contends that Nigeria funded such payments by exchanging naira from its consolidated revenue fund, so that the Costs Order should have been in naira.
“The issue is of some financial consequence because the naira depreciated significantly against sterling in the period between Nigeria’s payments to its lawyers and the making of the Costs Order.
“Nigeria’s legal fees and disbursements are said to have amounted to around £43 million. P&ID asserts that payment of such fees and disbursements at the relevant times would have cost Nigeria a total of about 23 billion naira; but if P&ID is required to pay £43 million in costs now, that could be exchanged by Nigeria at the current rate to about 76 billion naira.”
Snowden, the lead judge, accepted the arguments of Nigeria that since the legal cost was paid in sterling, the cost order should be paid in the same currency.
“In my judgment, therefore, the judge was right to accept Nigeria’s straightforward submission that because Nigeria had been invoiced and had incurred its liability to its solicitors in sterling and had paid those bills in sterling, the court ought to make its Costs Order in sterling,” the judge ruled.
“I would therefore grant P&ID permission to appeal, but would dismiss the appeal.”
The Cable
Editorial: Supreme Court’s LG autonomy ruling: A betrayal of federalism principles
The recent Supreme Court ruling mandating direct allocation of funds to local governments and barring governors from dissolving elected councils has raised afresh questions about the nature and future of federalism in Nigeria. While the decision aims to curb the notorious misappropriation of funds by state governors, it inadvertently undermines the core principles of federalism and perpetuates an inequitable system of local government distribution.
In a federal system, true autonomy is reserved for the federating units—states or regions that come together to form a central authority for mutual benefits. Local governments, created primarily for administrative convenience, do not qualify as federating units and should not draw directly from the federation account. The Supreme Court’s decision, however well-intentioned, ignores this fundamental distinction and disrupts the delicate balance of power that federalism seeks to maintain.
Historically, the creation of local government areas (LGAs) in Nigeria has been a tool for sectional and personal interests rather than equitable development. Military regimes, particularly those from the North, exploited their powers to create LGAs disproportionately in their regions, securing demographic and fiscal advantages. For instance, while Lagos State remains with its original 20 LGAs since the 1976 reform, the old Kano State has been split into Kano and Jigawa States, boasting a combined total of 77 LGAs. This discrepancy has led to an unjust allocation of national resources, leaving states like Lagos, which contribute significantly to the national purse, at a disadvantage.
The Supreme Court’s directive for direct allocation to LGAs, irrespective of these historical inequities, is akin to reinforcing an unjust system under the guise of promoting local autonomy. The resultant fragmentation could see every village and ward demanding its share of the federation account, leading to an administrative nightmare and further diluting the essence of federalism.
The real issue plaguing local governance in Nigeria is not just the misappropriation of funds by state governors but the inherent inequity in the creation and distribution of LGAs. Local governments should be under the purview of states, which can better assess and address the needs of their populations. The federal imposition of LGAs and their direct funding from the federation account contradicts the principles of federalism and exacerbates existing inequalities.
Moreover, there is little evidence to suggest that direct allocation will lead to better governance at the local level. Without robust accountability mechanisms, local government chairmen may well emulate the corrupt practices of state governors. The root cause of underdevelopment in many local areas is not solely financial mismanagement but a pervasive lack of accountability and transparency in the political system.
The Supreme Court’s decision should serve as a catalyst for a broader debate on restructuring Nigeria’s federal system. A workable solution lies not in granting undue autonomy to local governments but in returning the creation and sustenance of LGAs to the states. This approach would respect the principles of federalism, allowing states to delineate local governing areas based on demographic realities, administrative needs, and financial viability.
In conclusion, while the Supreme Court’s decision aims to promote local governance, it inadvertently undermines the federal structure and perpetuates historical injustices. True federalism requires a system where states, not the central government, create and manage local governments. Only through such restructuring can we hope to build a more equitable and functional federal system in Nigeria.
Northern Elders tell youths to spearhead struggle that’ll reform society
Abdul-azeez Suleiman, spokesman for the Northern Elders Forum has tasked northern youths to learn from the mistakes of past leaders and push for reforms that will reposition the society.
Suleiman, who spoke at the Leadership Summit organised by the Zaria Local Government Students Association (ZASA) said in a society where the older generations have become complacent or entrenched in outdated ways of thinking, it is the youth who have the potential to shake things up and push for the much-needed reform.
He observed that it is the youth that have the ability to challenge the status quo, question authority, and demand accountability from those in power.
He, however, reminded the youth that change starts from within, saying that “Instead of blaming past leaders for the current state of affairs, it is crucial to learn from their mistakes and strive to do better”.
The NEF spokesman pointed out that as northerners, it is important to be proud of the northern identity without arrogance or conceit, while taking cognisance of the history and destiny of the region.
Suleiman stressed that the North is a region of immense potential, with a rich history of resilience and strength, and admonished honesty on the region’s limitations and challenges, while working collectively to address challenges.
“Past leaders have made sacrifices and stood up for the rights of northerners, and it is essential to learn from their bravery and courage. Unity is the key to our progress, and we must be willing to respect the identities of all Nigerians, while also defending our own rights with dignity and resolve.”
Daily Trust
Zacchaeus climbs down: Kenya’s deadly Gen-Z protests could change the country - The Economist
For weeks Kenya has been mired in unrest. Confronted with demonstrators denouncing the tax policies of William Ruto, Kenya’s president, the security forces responded ruthlessly. They have killed at least 39 people, most of them in Nairobi on June 25th, when protesters briefly overran Parliament and set a portion of it ablaze. Looting has also erupted in several towns and cities, though it is unclear whether this was by state-backed provocateurs, as the protesters allege, or by opportunist criminals, as Ruto claims.
Yet far from provoking fear among Kenya’s better-off, the unrest has inspired wild optimism. Unlike most protests in recent decades, these are led by young, eloquent, educated Kenyans who are unsullied by political or tribal allegiance. Their cause—an end to corruption, injustice and inequality—seems noble rather than tawdry. Instead of championing a self-serving political leader or faction, they have denounced the entire political class. These protests have consequently united rather than polarised people. Perhaps the only parallel that can be drawn is with the protests led by the present lot’s parents, who also braved police bullets in 1990 to demand, successfully, an end to dictatorship and the restoration of multiparty elections.
The reverberations of the “Gen-Z protests”, as they are known in Kenya, could be as profound. Ruto has been weakened and humiliated. Could the chastening of the political class lead to a cleansing of corruption and fairer politics? Stung by the extent of the unrest, Ruto has capitulated on tax. Much will depend on whether Kenya’s people and its rulers can overcome the challenges and seize the opportunities created by past weeks’ events.
Ruto’s first task will be to find a way of getting Kenya to live within its means. He came to power in 2022 with an ambitious poverty-alleviating agenda yet inherited a wodge of debt from his free-spending predecessor. Faced with rising borrowing costs, a public debt equivalent to 68% of GDP, conditional IMF support and the expectations of his voters, Ruto had little choice but to put up taxes. The latest rise triggered the unrest, with protesters nicknaming the president “Zakayo”, the Kiswahili name for Zacchaeus, a biblical tax-collector.
Kenya is not the only country to suffer debt distress. But it seems to have a lower pain threshold than others on IMF lifelines, such as Pakistan, Egypt and Nigeria, notes Charlie Robertson of FIM Partners, who draws parallels with the Greek financial crisis of 2009. Like Greece, Kenya built up debt when borrowing was cheap and paid little heed to current-account and budget deficits. Now it is struggling to pay up.
Facing a $2.7bn hole in his budget this year after abandoning the tax increases, Ruto has to cut spending and raise borrowing. Kenya is likely to miss its target of cutting its fiscal deficit to 4.7% of gdp this year. Ruto also faces a potential mutiny from MPs who are enduring the fury of their constituents. “His legislative agenda is dead,” one says. “He is a lame duck.”
Ruto could possibly have avoided this pickle. While anger over his fiscal policy exists, the president’s tax rises became a tangible hook on which to hang more nebulous grievances, primarily over corruption and unemployment. Kenya’s young are more educated than ever before, but 67% of those under the age of 34 are not regularly employed.
Many are angry that while they struggle to survive, Ruto’s allies have flaunted their wealth. “The finance bill wasn’t the root cause of the protests,” says John Githongo, a former anti-corruption tsar. “The biggest grievance is the conspicuous consumption of the Ruto regime.”
Addressing corruption is where the real opportunity for change comes. MPs who supported the tax rises have had their offices, businesses and homes attacked. Congregations have walked out when some have tried to address church services. “We have become pariahs,” grumbles one lawmaker. MPs who used to swank about their wealth are now cultivating new images as humble servants of the people.
This is a start, but the protesters frequently demand two things. The first is to end a culture of nepotism in which cushy sinecures are bestowed on politicians’ relatives. Ruto has responded by scrapping state funding for his wife and slashing the number of special advisers whom cabinet ministers can appoint.
The second is to end community fundraising drives, known as harambees(Kiswahili for “let’s pull together”) because they incentivise political corruption. One of the reasons politicians flaunt their wealth, for example by arriving at rallies by helicopter, is to prove that they are rich enough to hand over bags of banknotes at these weekly events, as is commonly expected of them. (In March Ruto donated $389,000 to the Salvation Army.) Activists see these donations as little more than a tax on corruption, with politicians encouraged to steal in order to return a portion of their ill-gotten gains to the public.
On July 5th Ruto banned public officials from taking part in harambees. Whether that will last is another question. One county governor predicts that the ban will begin to unravel by the end of the school holidays in August, when harambees are called to provide bursaries for pupils whose parents cannot afford fees.
The biblical Zacchaeus was redeemed by climbing down from the tree from which he could view Jesus and giving half his money to the poor. Kenyans would rather Ruto and his colleagues stopped giving cash away and instead prevented officials from stealing it in the first place. If he heeds their call, he may yet survive.
Here’s the latest as Israel-Hamas war enters Day 283
Hamas says it has not left ceasefire talks after Israeli attacks
A senior Hamas official said on Sunday that the Islamist group has not withdrawn from ceasefire talks with Israel after this weekend's deadly attacks in Gaza that Israel said had targeted the group's military leader Mohammed Deif.
But Izzat El-Reshiq, a member of the political office of Hamas, accused Israel of trying to derail efforts by Arab mediators and the United States to reach a ceasefire deal by stepping up its attacks in the enclave.
Saturday's strike in the Khan Younis area of Gaza, in which at least 90 Palestinians were killed, according to local health authorities, has put the ceasefire talks in doubt.
There had been increasingly hopeful signs in recent days that a deal could be reached to halt fighting and return hostages held in Gaza.
Two Egyptian security sources at ceasefire talks in Doha and Cairo said on Saturday that negotiations had been halted after three days of intense talks.
Israeli Prime Minister Benjamin Netanyahu was expected to convene his close circle of ministers later on Sunday to discuss the talks.
The strike on Saturday which targeted Deif killed Rafa Salama, commander of Hamas' Khan Younis brigade, the Israeli military said on Sunday, but there was no confirmation about the fate of Deif.
"The strike in Khan Younis was a result of surgical intelligence," the head of the Shin Bet domestic security service said in a video released by the service from Rafah. He said 25 Hamas operatives who took part in the deadly Oct. 7 attack in southern Israel that triggered the war had been killed in the past week.
On Saturday, a senior Hamas official denied that Deif had been killed and the group said Israeli claims were aimed at justifying the attack.
Israel's military chief said on Sunday in a televised statement that Hamas was concealing the truth about Deif's fate, but stopped short of confirming whether he was alive or dead.
Israeli forces pressed ahead on Sunday with aerial and ground shelling of several areas across the Gaza Strip, home to 2.3 million people, most of whom have been displaced by the war.
A strike on a UN-run school in Nuseirat camp, one of Gaza's eight longstanding refugee camps, killed 15 Palestinians and wounded dozens more, Hamas media and health officials said.
The Israeli military said the site was used as a base for Hamas fighters to attack Israeli forces and said numerous steps were taken to limit the risk of harming civilians, including the use of precise munitions and intelligence.
Residents said two missiles targeted the upper floor of the school, not far from the camp's local market, usually busy with shoppers, where displaced families have also taken shelter nearby.
Earlier on Sunday, Israeli airstrikes on four houses in Gaza City killed at least 16 Palestinians and wounded dozens of others, medics said.
The Gaza health ministry said at least 38,584 Palestinians have been killed and 88,881 others injured in Israel's military offensive since Oct. 7.
It added that 141 Palestinians were killed by Israeli military strikes across the Gaza Strip in the past day, the biggest one-day death toll in many weeks.
Gaza's health ministry does not distinguish between combatants and non-combatants but officials say most of the dead throughout the war have been civilians.
Israel says it has lost 326 soldiers in Gaza and says at least a third of the Palestinian fatalities are fighters.
The war began after a Hamas-led attack inside Israel on Oct. 7, that killed 1,200 people, mostly civilians, and saw around 250 taken hostage to Gaza, according to Israeli authorities.
Reuters