Nepal’s Youth Revolution Returns: Prime Minister Balen Shah Faces Fierce Protests Over Squatter Evictions

Prime Minister Balen Shah is facing his first major political crisis as Gen Z-led protests erupt across Kathmandu over the eviction of thousands of squatters without a resettlement plan. These demonstrations mirror the violent 2025 uprising that toppled the previous administration, highlighting a growing humanitarian crisis within temporary holding centers.

RMN News Political Desk
New Delhi | July 13, 2026

Kathmandu Under Siege: The Human Cost of Urban Reform

The streets of Kathmandu have become a flashpoint for civil unrest as hundreds of protesters, led by the Joint National Squatters Front, challenge the government’s aggressive eviction drive. Since April, the structures of over 2,600 families—totaling approximately 15,000 people—have been dismantled across the Kathmandu valley and other regions of Nepal. While the government intended to “beautify” the capital, the lack of a viable resettlement plan has left thousands in “inhuman” living conditions.

The situation escalated sharply following the tragic self-immolation of 25-year-old Ganesh Nepali, who set himself on fire in Kathmandu after city police allegedly penalized him for a traffic violation. Public anger intensified further on Friday when floods hit a temporary settlement housing 150 displaced people. When Gen Z activists arrived to inspect the conditions the following day, police utilized baton-charges to clear the crowd, resulting in at least one activist being hospitalized with facial injuries.

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Echoes of 2025: A Precarious Political Landscape

The current unrest draws direct parallels to the massive anti-government protests of 2025. In September of that year, a youth-led movement pushed then-Prime Minister KP Sharma Oli to the brink. Those demonstrations were marked by widespread arson and vandalism, including significant damage to the residences of the President, former Prime Ministers, and the Energy Minister. Prime Minister Oli eventually resigned on September 9, 2025, after a wave of ministerial resignations rendered his government untenable.

Ironically, current Prime Minister Balen Shah—once a Time magazine “Emerging Leader” and popular mayor—rose to power with the fervent support of the same Gen Z demographic now protesting his administration. Critics, including Nepali Congress president Gagan Kumar Thapa, have condemned the government’s recent arrests of activists, students, and journalists who have spoken out against the living conditions in holding centers.

As the government’s July 6 deadline for squatters to vacate holding centers passes, at least 60 families have refused to leave, citing a total lack of alternatives. With protests spreading as far as Koshi province, where 26 additional supporters were recently arrested, the Shah administration faces a defining challenge from the very generation that fueled its ascent.