MPs in push and pull over Finance Bill
The Chairperson National Assembly Finance and National Planning Committee Kimani Kuria and fellow MPs address the media at Parliament Buildings, Nairobi on June 18, 2024.
What you need to know:
- Azimio la Umoja MPs faulted President William Ruto’s proposed taxes.
- They called on the government to shelve the divisive revenue raising Bill.
Looming increase in fuel prices, Roads Maintenance levy tax, intrusion of privacy, tax on diapers, sanitary towels and insurance on Thursday dominated debate on the Financial Bill, 2024 against the backdrop of countrywide protests.
In a contest pitting supporters of the Bill in its Seconding Reading and those opposed Thursday morning, speaker after speaker presented their case on why it is either good or detrimental to the public.
Azimio la Umoja One Kenya coalition faulted President William Ruto’s proposed taxes, claiming he is under external pressure to burden wananchi as well as turning a deaf ear to concerns raised by wanjiku.
They backed the countrywide demos calling on the government to shelve the divisive revenue raising Bill, as MPs allied to Ruto warned of the potential risks in implementing the Kenya Kwanza agenda and meeting the country debt obligation.
Budget and Appropriations committee chairperson Ndindi Nyoro, however, indicated that whatever happens to the Finance Bill, the government is prepared.
“I am sure with the same energy that we are speaking either for or against, we will also explain to Kenyans and the Junior Secondary School (JSS) teachers,” said Mr Nyoro.
He warned MPs on the effects of budget cuts as Teachers Service Commission (TSC) was set to hire 46,000 tutors as permanent and pensionable in the next budget.
He argued that if MPs deny National Treasury the power of revenue raising measures, it means people will be voting against confirmation of the teachers.
The Kiharu MP also made reference to National Treasury Cabinet Secretary (CS) Njuguna Ndung’u letter to National Assembly clerk Samuel Njoroge who warned of a Sh200 budget deficit if MPs make changes to the Bill seeking to raise Sh302 billion in revenue in next financial year.
“Coffee cherry fund will be cut by Sh1 billion if there is no funding through the Finance Bill. My plea is this, that if it’s possible the House Business Committee (HBC) can actually bring the Appropriation Bill this afternoon,” he urged.
Kibwezi West MP Mutuse Mwengi faulted the countrywide protests, saying the Finance and Planning committee led by Kuria Kimani had listened to Kenyans and dropped the thorny proposals.
“The opposition to the Bill is majorly inspired by politics, it may not be inspired by the content. One of the principles of good governance is responsiveness to the wishes of the people and the finance committee is responsive,” he stated.
Mwingi Central MP Gideon Mulyungi said they are disturbed by the insensitive nature of the Bill that seeks to tax cancer equipment which will eventually increase the cost of treatment of the killer disease.
“This Bill is not only punitive but retrogressive. The amendments proposed by the finance committee were meant to hoodwink Kenyans because in the first instance why did they put tax on bread, diapers, cooking oil. These are essentials,” he questioned.”
Westlands MP Tim Wanyonyi poked holes in the Bill, saying it does not address an equitable and inclusive fiscal policy that fosters sustainable development.
“This Bill as it stands, is punitive and it will have devastating effects on young people not only in Nairobi but all over the country,” said Wanyonyi while opposing the Bill.
He noted that the Generation Z (Gen Z) have come out in droves so that their voices could be heard.
His Bonchari counterpart Charles Onchoke said, “The people of Bonchari would want a tax that is more humane. A tax that they can afford because they are impoverished, overburdened as things are now.”
Kasarani MP Roland Karauri questioned what the demonstrators were protesting about yet the government had dropped the proposals disputed.
“The changes have already been made. The Value Added Tax (VAT) on bread dropped, excise duty on vegetable oil has been dropped, motor vehicle tax has been dropped. I would be as very deceptive individual, if I didn’t change my stance and now support the Bill with amendments,” said Karauri.
Lamu East MP Ruweida Oboo also backed the Bill, saying her region still needs resources to initiate development projects.
Mr Kimani has rallied MPs to support the Bill, noting that the concerns raised Kenyans during the public participation exercise and which were contrary to the law, were addressed.
The MPs take a vote this afternoon on the proposals dropped in the Bill.
