With increasing opposition to the Bill among the public, trade unions, employers and manufacturers the MPs whose party leader has unequivocally stated that the Bill must pass, are torn between party loyalty and listening to their constituents.
Their position is clearly that of 'damned if you do and damned if you don't' when it comes to the Bill.
The proposals in the Finance Bill have triggered concerns and outrage amid fears the changes will trigger a spike in the cost of living.
President William Ruto has asked his troops to pass the Finance Bill 2023 without changes, saying his Bottom Up economic agenda is envisioned in the law.
The Star has established that many Kenya Kwanza allied MPs are however jittery that endorsing the tax laws will trigger a backlash from their voters.
But the MPs also fear attracting the President’s wrath and being seen to sabotage his agenda.
Consequently, many MPs have taken a low profile, remaining tight-lipped on whether they support the bill or not.
At the weekend, Kakamega Senator Boni Khalwale was booed and jeered in his backyard for publicly rooting for the changes.
The funeral service was disrupted as mourners shouted, "lies" in response to Khalwale's explanations regarding the proposed tax laws.
On Monday, civil servants took to Nairobi streets to protest what they termed "over-taxation" opposing key sections of the bill, which Ruto has termed as a "panacea to youth unemployment in Kenya"
The demonstrators were drawn from the Kenya National Union of Teachers, Kenya Universities Staff Union, Kenya Medical Practitioners and Dentist Union, Union of Kenya Civil Servants and Kenya Health Professional Society.
Others were the Kenya Union of Domestic, Hotels, Educational Institutions, Hospitals and Allied Workers.
Opposition team is misleading Kenyans, there is no gain without pain. There could be a few issues with the Bill but in totality, it is good for Kenyans
The group petitioned Parliament to reject proposals to increase taxes and threatened to hold a major strike if MPs pass the Bill.
“As unions, we condemn in the strongest terms the heartless, insensitive, and cavalier manner in which the government is proposing to impose a housing levy without any commensurate increment in workers' payments. We demand the immediate reversal of the levy,” Kusu secretary general Charles Mukhwaya said.
For some MPs, apart from being seen to be championing anti-people legislation, the bill is a double-edged sword, as it will equally hit them hard.
If approved, they would be among those to be slapped with a 35 percent income tax since they earn more than Sh500,000.
Currently, the income tax is capped at 30 percent.
A first-term UDA MP from Western Kenya on Monday confessed that the issue of the Finance Bill is a poisoned chalice and may turn up to be a career killer for a number of its proponents.
The lawmaker who asked not to be named confessed the Bill is likely to set some of them against the electorate.
This, even as Azimio plans to push for public voting to expose how MPS vote.
“I am not willing to comment on the Bill, it is a delicate balance for some of us who are pro-government,” the lawmaker said when asked about the tax measures.
Some Kenya Kwanza MPs who spoke to the Star however confidently backed the Bill saying it is the only way to get the country out of expensive debt that is choking taxpayers.
Mwala MP Vincent Musyoka told the Star that there is a concerted effort to relook at the fuel levy even as he backs the tax measures as necessary for the country to prosper.
“Opposition team is misleading Kenyans, there is no gain without pain. There could be a few issues with the Bill but in totality, it is good for Kenyans,” Musyoka told the Star.
Gatundu South MP Gabriel Kagombe accused the opposition of misleading Kenyans on the contents of the Bill, which he noted are good for the country.
“I know people who associate with such things become unpopular, we must get to a point when we do the right thing even though it is not popular,” Kagombe told the Star.
Bondo MP Gideon Ochanda – one of the eight ODM MPs who broke ranks with the party to support the President – admitted that some sections of the Bill would be hard to sell to Kenyans.
According to Ochanda, the proposed three percent housing levy needs reconsideration.
“This thing of housing is fairly unpopular. When it comes to housing, people in problem are those in urban areas, so if you tell a teacher in the village to contribute to buy a house, they don't know what you are saying,” Ochanda told the Star.
The controversial Bill proposes a three per cent Housing Levy on all salaried people and a similar amount on their employers.
It also raises income tax from the current 30 per cent to 35 per cent for those earning Sh500, 000 and above.
The Bill also raises the National Hospital Insurance Fund contribution.
“They may be good but the timing is bad. Times are difficult. The only problem with all these things (proposed taxes) is the timing; we are going through a lot of things as a country. Some could wait,” Ochanda said.
Mbeere North MP Geoffrey Ruku while defending the proposed taxation noted that Kenya is among countries where citizens are least taxed.
“Kenya is the least taxed country in comparison to South Africa, Botswana, Norway, and Germany. We, therefore, need to be taxed more gradually,” Ruku said.
Kuria West MP, Mathias Robi told the Star the proposed Finance Bill is the only way to get the country out of incessant borrowing that has seen more than half of the local revenues channelled to servicing loans.
The second-term lawmaker said he would vote for the Bill.
“The President was clear he is not going to borrow, we should live within our means,” he said on the phone.
