By Our Reporter
Nepal is facing one of its most turbulent political moments in recent memory. The jailing of Rabi Lamichhane in the cooperative scam case, the bloody Gen Z-led revolt, and the sudden resignation of popular Rastriya Swatantra Party (RSP) leader Sumana Shrestha have converged to create a storm that is redefining the country’s political landscape.
Lamichhane, who built his political career as an anti-corruption crusader, has been sent back to Nakkhu jail after a parliamentary investigation concluded that funds from several cooperatives were siphoned off through his former media company. For a party that campaigned on clean politics, the scandal is devastating. The RSP now faces a leadership vacuum and a growing crisis of credibility that could undo its rapid rise and alienate its core urban supporters.
Rabi’s escape from Nakkhu jail also made the matter worse for the RSP as the people saw it a violation of law. Many accuse him of providing forged document for escaping during the jail when the Gen Z protest on September 9 was at its height. He was also accused of encouraging other criminals, including several engaged in grave offenses, from jails across the nation. The incident has hit badly the RSP reputation.
Adding to the party’s troubles, Sumana Shrestha, one of its most respected faces and a former education minister, announced her resignation this week. In a blunt message, she accused the leadership of refusing to acknowledge mistakes and of repeated failures to uphold the party’s founding values. Her exit has intensified calls for accountability within the RSP and fueled speculation of deeper internal rifts that could splinter the party at a time when it is most vulnerable.
Meanwhile, the Gen Z revolt has turned into the most significant grassroots uprising since the 2006 movement. What began as protests over unemployment and lack of opportunity quickly expanded into a wider rejection of the political order. More than 70 people, including three police officers, have been killed in violent clashes, forcing the resignation of the previous prime minister and the installation of Sushila Karki as Nepal’s first female prime minister.
Karki has pledged economic recovery measures and promised support to victims’ families, but her government must also deal with a disillusioned generation that sees politics as broken. Relying only on security crackdowns risks deepening the divide and triggering fresh unrest.
Politically, these developments have created both risk and opportunity. The RSP’s troubles could allow Congress and UML to reclaim some space, but they too face an electorate that blames them for decades of stagnation and corruption. Gen Z voters are not merely angry, they are demanding a generational shift in leadership and governance. If no party delivers, new political forces could emerge.
The next few months will be decisive. If Lamichhane’s legal battle ends badly for him and the RSP fails to present credible new leadership, the party could collapse or fragment. If Karki can stabilize the streets and show measurable progress on jobs and reforms, she could consolidate her government’s position and blunt the appeal of populist forces.
Nepal’s politics is at a tipping point. The combination of a populist leader in jail, a major party losing key figures, and a youth-led uprising has redrawn the political map. What happens next will determine whether the country moves toward renewal or slides into deeper instability.
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