Nairobi
Tuesday, 18 June, 2024
By Felix Mogaka
President William Ruto chaired a crucial Kenya Kwanza Parliamentary Group (PG) meeting at State House on Tuesday ahead of the Finance Bill, 2024’s consideration.
The meeting, attended by Deputy President Rigathi Gachagua and top parliamentary leaders, aimed to rally MPs behind the Bill amidst opposition to certain tax proposals.
The president’s convening of the session follows threats from some MPs to oppose his tax proposals.
The Departmental Committee on Finance and Planning is expected to table its final report on the Bill for Second Reading after extensive public hearings.
MPs will debate and may amend parts of the report during the Third Reading Stage.
The Finance Bill, 2024 has sparked controversy nationwide, with leaders and citizens urging MPs to reject punitive tax measures that could burden ordinary people.
The President’s meeting was perceived as a last-ditch effort to garner support for the Bill amid reports of Deputy President Gachagua urging allies to reject it.
Gachagua has faced criticism from some of the President’s allies, accusing him of fostering tribal divisions through his “One Shilling, One Vote” mantra.
The State House meeting occurred as the Finance Committee, chaired by Molo MP Kimani Kuria, indicated potential revisions to controversial tax proposals.
These include removing bread from the list of zero-rated commodities, imposing a 25% excise duty on crude edible and refined oils, a 2.5% motor vehicle tax, an eco-levy of Sh150 per kilogram, and a 3% import declaration fee.
However, the committee suggested reducing the proposed excise duty on vegetable oils from 25% to 5%. The committeee finalized its report in Naivasha on Monday after three weeks of public participation, during which it received 500 memoranda.
This extensive public engagement reflects the significant public interest and concern regarding the Bill’s implications.
President Ruto recently urged MPs to pass the 2024/25 national budget, emphasizing the importance of funding stalled road projects from the previous administration.
Speaking at the Akorino Church National Conference in Nakuru on Sunday, Ruto highlighted the critical nature of the budget for infrastructure development.
“We had many road projects that stalled due to lack of funds. Last year, we aimed to address the economic challenges,” he said.
Ruto asserted that the nation’s economy has stabilized after nearly 20 months of governmental restructuring.
He appealed to MPs to support the budget, stressing its role in reviving essential road projects.
“I ask MPs to assist us because this budget allocates funds for all stalled roads in the country,” Ruto said.
“Projects like the Mau Mau Road and many others in Nakuru are included in this budget; we aim to revive them.”
The upcoming parliamentary debate on the Finance Bill, 2024 will be crucial in determining the fiscal direction and development priorities of the country, reflecting the intense political maneuvering and public scrutiny surrounding the proposed tax measures.