President William Ruto on Saturday hinted at new tax measures to plug a Sh346 billion revenue shortfall following the withdrawal of the controversial Finance Bill 2024, which was the subject of widespread youth protests that saw them storming Parliament and destroying part of it during debate.
The President’s remarks suggest the possibility of a Tax Laws (Amendment) Bill that typically allows Parliament to amend and introduce new tax measures outside of the Finance Bill, and is usually used to amend individual laws that creates various taxes.
"We had good plans with the additional Sh300 billion in the Finance Budget, 2024, but it was rejected. I have told (Malava MP) Malulu Injendi and other MPs here that we go and plan again for new (revenue raising) measures. When you give birth to a child and it develops problems and dies, do you give up looking for more children?" Dr Ruto said.
"So, like this thing in our Finance Bill, we will plan again so that we have money for development."
The President spoke in Kakamega County when he launched a Sh2 billion water project at Namanja in Malava, Saturday.
“All the development projects we are launching in the counties were contained in the Finance Bill that was rejected. We had enough money for roads, water projects, electricity and everything. The support of dairy, sugarcane and coffee farmers had been planned and put in that Bill,” Dr Ruto told the residents of Kakamega.
Earlier, the Head of State said the withdrawal of the Finance Bill, 2024 would affect the employment of 46,000 junior secondary school teachers who have been working on temporary contracts, as well as hamper plan for universal healthcare services.
The withdrawal of the Finance Bill following the protests led to President Ruto co-opting opposition leader Raila Odinga’s allies in his government, including new Treasury Cabinet Secretary John Mbadi, in what is now referred to as a broad-based government.
During his vetting for the role, Mr Mbadi hinted at a plan to hive off some of the non-contentious proposals in the rejected Finance Bill, 2024 and bring them to Parliament for consideration in order to get in some income for the government.
“The good provisions that are not contentious, in this (withdrawn Finance) Bill, which can still help Kenya, we can bring specific amendments to those Acts with proper public participation. The public felt there was no proper participation, which we had, but probably they felt they were not listened to. The Bill became bad in the eyes of the public and it had to be rejected in total because of lack of clear communication,” Mr Mbadi told Parliament.
The Malava Water project that will serve an estimated 42,000 residents of Shirugu-Mugai, Butali-Chegulo and West Kabras wards.
Dr Ruto also promised to connect additional 35,000 households in Kakamega to electricity through the Rural Electrification programme at a cost of Sh2.7 billion.
He said his administration was in negotiation with several development partners including the European Union (EU) to complete phase two of the Rural Electrification programme.
“Already contractors have been identified and are conducting a survey before they commence connecting the benefitting residents to electricity,” he said.
Other projects lined up by Dr Ruto in Kakamega County include the completion of stalled roads like Ikoli-Malava, Malava-Samitsi, Airport-Shinyalu, Lurambi-Navakholo-Musikoma and Shianda-Navakholo-Malava.
The President partly intervened in the sugarcane pricing, assuring farmers that he would engage with the leadership of the counties that grow the cash crop to find a lasting solution.
“We will sort this business of sugarcane. I have been told that there are challenges in cane pricing but I will sit with governors and sort out the issue,” he said.
Kakamega is the home county of Cooperatives Cabinet Secretary Wycliffe Oparanya, who was appointed into Cabinet by President Ruto last month, and who thanked the President for appointing him as part of the Kenya Kwanza Cabinet and promised to deliver on his mandate.
"I have obeyed the order and all I want to assist the President to deliver development in the country," Mr Oparanya said.
Mr Oparanya, who was among the key detractors of the Kenya Kwanza administration, said he will not involve himself in politics anymore, adding that he will stick with Dr Ruto to develop Kenya.
"You know when I was outside, I didn't know what was inside. But now that I am inside, I know how it is. President Ruto’s government has good plans for Kenyans," he said.
Leaders from Western region who accompanied the President included Kakamega Governor Fernandes Barasa, his deputy Ayub Savula, Senator Boni Khalwale, and MPs Elsie Muhanda (Woman Representative), John Waluke (Sirisia), Tindi Mwale (Butere), Innocent Mugabe (Likuyani), Christopher Aseka (Khwisero) and Emmanuel Wangwe (Navakholo), among others.
Governor Barasa said the Sh2 billion water project was a milestone towards his pillar of water at the doorstep (Amatsi khumuliango), a programme to connect water for the people of Kakamega.
He said he was solidly behind the President’s formation of the broad-based government that has seen his predecessor, Wycliffe Oparanya, appointed into cabinet.
“We thank you for appointing our own brother, Mr Oparanya into your cabinet. I know him as a person who delivers and I am sure he will not let you down,” said Mr Barasa.
Central Organisation of Trade Union (Cotu) Secretary General Francis Atwoli asked Governor Barasa to work closely with Oparanya for Kakamega to realise more development.
Since the formation of the broad-based government President Ruto has toured various regions including Embu, Mombasa, Uasin Gishu, Murang’a, and Kisii.
