Azimio's push on taxes flops as Ruto-Raila team unveils measures to lower cost of living

Raila had warned that no deal will be sealed without addressing cost of living.

In Summary
  • The Dialogue Committee on Saturday unveiled the final report of its deliberations.
  • The report was signed by NADCO co-chairs Kalonzo Musyoka of the Azimio Coalition and Kimani Ichung'wah of the Kenya Kwanza Coalition.
Wiper Leader Kalonzo Musyoka shakes hands with National Dialogue Committee Co-Chair Kimani Ichung'wah as other members of the committee look on after the signing of the final report on Saturday, November 25, 2023.
Wiper Leader Kalonzo Musyoka shakes hands with National Dialogue Committee Co-Chair Kimani Ichung'wah as other members of the committee look on after the signing of the final report on Saturday, November 25, 2023.
Image: KALONZO MUSYOKA/X

The push by the Azimio La Umoja coalition to coerce President William Ruto's government to rescind key decisions on taxes has hit a snag.

The National Dialogue Committee (NADCO) on Saturday admitted to failing to agree on the matter while unveiling the final report of its deliberations.

In the report, both camps made proposals on key issues that were part and parcel of the talks in which they disclosed failure to hit a deal on Azimio's major concerns on taxes, the finance act, and the Housing Levy.

"The committee was unable to reach a consensus on a number of other proposals on the matter of cost of living, including the reduction of VAT on fuel from 16% to 8%, and scrapping of the housing levy, the twin issues in the Finance Act 2023," the report stated.

The report was signed by NADCO co-chairs Kalonzo Musyoka of the Azimio Coalition and Kimani Ichung'wah of the Kenya Kwanza Coalition.

The Azimio coalition had argued that the cost of living had hit a record high owing to the new taxes introduced by the Ruto regime.

ODM leader Raila Odinga had warned that he would not append his signature on the report if the committee fails to address the cost of living as demanded by Azimio.

“The Azimio Coalition will not enter into any agreement without first addressing the cost of living. The cost of living must be reduced, and we must also address the audit of last year’s election,” Raila said at an event in Mombasa on November 6.

Despite failing to hammer a deal on taxes, NADCO tabled four key proposals to address the cost of living.

"NADCO recommends that all arms of government shall reduce their travel budgets by 50 per cent and that the Salaries and Remuneration Commission review Daily Subsistence Allowances for State and Public Officers with a view to reducing by 30 per cent," the first proposal read.

The committee further recommended that the Ministry of Energy and Petroleum in liaison with the national Treasury reduce the road maintenance levy and the anti-adulteration levy by Sh 5 and Sh 3 per liter respectively.

It further proposed that the National Government finalizes the transfer of all devolved functions and provides for the concomitant resources to the county governments.

"NADCO recommends that Parliament shall amend the Constitution to provide for the equitable share to the County Governments not to be less than 20 per cent of all revenue collected by the National Government from the current 15 per cent," the fourth proposal by the committee read.

The proposal on the cost of living is among five others that were made by the committee and forwarded to Ruto and Raila.

The report was forwarded to the two coalition leaders electronically.

Speaking while releasing the report, Kalonzo and Ichung'wah described it as a product of sacrifice between both parties.

"Throughout this process, concessions were made, entrenched positions were relinquished, but unwavering dedication to the welfare of our beloved nation prevailed," the two said in a joint statement.

"We have placed Kenya above personal ambitions, recognizing that our people's unity and our nation's prosperity are paramount."


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