In the National Assembly in Kenya, where the real legislation takes place, a new confrontation between President William Ruto‘s allies and opposition leader Raila Odinga is expected this afternoon over the Finance Bill 2023.
This is a chance for MPs associated with the Azimio la Umoja One Kenya Coalition, the opposition group, to prove their loyalty after being accused of deserting the party on Wednesday last week when they were absent from the House as the Bill breezed through the second reading.
The Kenya Kwanza administration’s Sh3.6 trillion budget for the 2023–24 fiscal year is being funded by the Bill, which aims to raise an additional Sh130 billion in taxes.
Mr. Odinga has repeatedly argued that the Bill, which would impose “punitive” taxes on an already “overburdened taxpayer,” must be defeated by “like-minded” National Assembly members, regardless of their allegiance to a particular political party.
“It will be Kenya Kwanza strangling the people if the bill becomes law. We have instructed our MPs and any genuine pro-people Kenya Kwanza members in the House to see the fallacy of introducing these punitive taxation measures,” Mr. Odinga said.
Ms. Martha Karua, a former Gichugu MP who is Mr. Odinga’s running mate in the August 9, 2022, presidential election, has been equally outspoken in her opposition to the Bill. Last week, she commended Githunguri MP Gathoni Wamuchomba (Kenya Kwanza) for defying the norm by doing so.
“Congrats Hon Wamuchomba for your firm stand in articulating your constituents and views of a majority of Kenyans. A true representative of the people,” Ms Karua tweeted.
In reference to the “punitive” taxation measures in the Bill, Wiper leader Kalonzo Musyoka, a prominent member of the Azimio movement, chastised President Ruto, saying that he will soon be taxing the air “we breathe.”
However, President Ruto and his deputy Rigathi Gachagua are impatient to see the Bill become law in spite of Mr. Odinga’s request.
“The MPs will be in the National Assembly on Tuesday [today]. The simple thing to do is to vote in favour of the Finance Bill,” said President Ruto, even as his deputy said that the Mt. Kenya region, where he hails from, stands to benefit from the proposals in the Bill. “We have budgeted Sh250 billion for roads to be built,” he said.
Voting on the Bill in committee will be done clause-by-clause, which means that it will probably take until late at night and continue into the following sitting day on Wednesday.
Leader of minority Opiyo Wandayi (Ugunja) on Monday, said Azimio will not only be relying on its troops in the House but also “well-meaning MPs from the Kenya Kwanza side “to shoot down the Bill.”
“We hope that MPs including those who had voted for the Bill last week can still see the sense of standing with Kenyans by rejecting these burdensome taxation proposals contained in the Bill. It is not too late for the MPs to save Kenyans from strangulation by the Kenya Kwanza regime,” said Mr Wandayi.
The government intends to spend Sh3.6 trillion in the forthcoming fiscal year, which begins on July 1, 2023. This sum will be covered by both Appropriation in Aid and Ordinary Revenue (taxes).
According to the Budget Policy Statement (BPS) that the House approved, the Kenya Revenue Authority (KRA) is expected to collect Sh3 trillion, consisting of Sh2.8 trillion in ordinary revenue and Sh324 billion in appropriation in aid.
If Azimio MPs pull a fast one on their Kenya Kwanza counterparts, the government will not have the legal authority to levy taxes.
The House Committee on Finance and National Planning has already proposed a number of amendments, but Mr. Wandayi noted that his coalition has added “a raft of amendments on top of those.”
The Finance Bill, however, is not like other bills. The National Treasury must give its approval before an MP can suggest an amendment to the Bill because the National Treasury negotiates the budget on behalf of the government with the National Assembly, which is given control over the purse by the Constitution.
Azimio MPs should be ready to be overrun, just like it happened last week, according to Belgut MP Nelson Koech.
