STORY: Kenyan President William Ruto took the sword to his cabinet on Thursday (July 11).

He dismissed everyone except his foreign minister after nationwide anti-government protests.

"I have today, (WHITE FLASH) decided to dismiss with immediate effect all the Cabinet Secretaries and Attorney General of the Republic of Kenya.'

The youth-led protests, sparked by planned tax hikes which Ruto has since abandoned, have created the biggest crisis of his two-year presidency.

At least 39 people were killed in clashes with the police and some demonstrators briefly stormed parliament last month, before Ruto abandoned the new taxes.

In a televised address, Ruto told the nation he was also dismissing the East African country's attorney general.

But said the deputy president's office was not affected.

Last week Ruto proposed spending cuts and additional borrowing in roughly equal measure to fill the nearly $2.7 billion budget hole caused by the withdrawal of the tax hikes.

Analysts say the rollback means Kenya is likely to miss International Monetary Fund targets.

Although the government does not have debts due.