Chaos as MPs reject Ruto bid for Sh50bn 'hustlers' fund'

The National Assembly business was disrupted on Thursday during the debate on the Budget Policy Statement 2022 which sets limits for state spending in the next financial year.

This followed disagreements over a proposed amendment which United Democratic Alliance-allied members said would see the House increase the debt ceiling beyond the set limit of Sh9 trillion.

Majority Leader Amos Kimunya asked MPs to approve the national government budget ceiling at Sh2.075 trillion of which the Executive would have its budget capped at Sh2 trillion.

The Kipipiri MP said the amendment was to cure a situation where the budget would have a funding deficit of Sh846 billion yet there is only room for the country to borrow Sh400 billion.

The lawmaker defended the proposal, saying there was no way the House could amend the debt ceiling outside the law.

“That can never be the case as the two are totally different. There is no room for a supplementary BPS. The next government may find itself in a precarious situation if we don’t amend the deficit,” Kimunya said.

But MPs allied to William Ruto’s UDA rejected the move, accusing the proponents of seeking amendment through the backdoor.

Tension was high for a better part of the sitting as the two sides engaged in accusations and counter-accusations, some accused of hurling unprintable words at each other.

There were also claims that a member had carried a gun to the House, but the presiding speaker Jessica Mbalu assured members of their safety after sergeant-at-arms reported the MP had no weapon.

The standoff ran for hours, disrupting the debate on the budget which has opened a fresh battlefront between the UDA-leaning team and those aligned to President Uhuru Kenyatta.

But Ichung’wa said, “This amendment is changing in a substantive way the report by the Budget and Appropriations Committee. What has been circulated was not in the Order Paper.”

He said the amendment sought to amend the national government ceiling without following the due procedures of the House.

Garissa Township MP Aden Duale said the amendment to adjust the national government budget ceiling was unconstitutional.

“The amendment by Kimunya is opening the debt ceiling passed by this House by Sh200 billion. This is unconstitutional and cannot be allowed. This House and the Senate must receive a regulation from the National Treasury,” Duale said.

The former Leader of the Majority said the amendments by Kimunya were outside the Public Finance Management Act, 2012.

But Minority leader John Mbadi dismissed the assertions saying the Garissa Township MP was playing politics.

“Duale should not be an alarmist. We have never amended the debt ceiling through the BPS. I know he is playing politics,” Mbadi said.

Minority leader Junet Mohamed said the BPS has nothing to do with the debt ceiling, saying the sentiments were driven by “emotional distress.”

Earlier, Ruto’s allies in Parliament on Thursday lost their bid to allocate Sh50 billion in next year’s budget towards the creation of a “Hustler’s Fund”.

The proposal was among the amendments to the Budget Policy Statement 2022 as proposed by MPs Kimani Ichung’wa (Kikuyu), Wilson Sossion (Nominated), and Owen Baya (Kilifi North).

The MPs sought that the Sh50 billion be provided under the Trade ministry to go towards supporting credit finance MSMEs adversely affected by the COVID-19 Pandemic.

The UDA-allied MPs also lost their bid for Sh1.5 billion to be set aside for livestock off-take and Sh2 billion for drought mitigation as well as the bid for fertilizer subsidy to reduce the price to Sh2,500 for a 50-kg bag.

Deputy Speaker Moses Cheboi shot down the proposals on grounds that the Budget Policy Statement does not deal with estimates.

“I will disallow this amendment with the hope that the Budget Committee will consider the proposal at the time of considering estimates,” he said in a ruling on the proposals.

UDA-allied members sought to reduce the budget for the Office of the President, Defense, and Interior ministry to finance the Hustler’s Fund.

Ichung’wa also proposed that the allocation to counties be increased to Sh495 billion, “representing 35 per cent of the last audited and approved revenues of Sh1.413 trillion.”

The Kikuyu MP also sought to increase the Judiciary budget to Sh30 billion and that the Trade ministry maps out all goods and services with export potential from all the 290 constituencies.

The UDA-allied MPs also want the Treasury Cabinet Secretary should designate the Inspector-General as an accounting officer for the National Police Service.

Cheboi directed that the proposed changes to the Judiciary budget and the policy proposals be dealt with during the consideration of the estimates.

“I will allow the consideration of the proposal – Sh12 billion more for Judiciary, in line with our procedures on the processing of amendments of a similar nature,” the deputy speaker said.

Even so, the Budget committee chaired by Kieni MP Kanini Kega, a staunch President Kenyatta’s ally, has rejected the changes to their report.

The committee recommended to the National Assembly to approve the capping of the fiscal deficit at Sh400 billion or three per cent of GDP, whichever is lower.

BAC asked MPs to approve the national government’s budget ceiling for the financial year 2022-23 at Sh1,63 trillion, including Sh6.4 billion for the office of the auditor general.

The Kega-led team further recommended Sh50.2 billion as the ceiling for Parliament and Sh18.9 billion for the Judiciary.

The committee also provided Sh370 billion to county governments as an equitable share of the national revenue, Sh7.1 billion to the Equalization Fund, and Sh37 billion conditional grants to counties.

The committee also sought that the House orders that their resolutions form the basis for the preparation of the 2022-23 budget.

“That the Budget Policy Statement for the financial year 2022-23 forms the basis for the introduction of the Division of Revenue Bill, 2022.”