Gachagua’s camp is threatening to shoot down this Finance Bill 2024, which they say contains punitive sections and would impose onerous taxation and levies
The lawmakers, mainly from Mt Kenya, have identified sections for amendments as they consider them offensive to the common wananchi.
The Bill is the latest battlefield for the two sides that have engaged in a public spat linked to a falling out.
The growing unease in Ruto and Gachagua’s camps could seriously threaten the passage of the Bill that specifies the government’s tax-raising measures.
While the disquiet has been linked to heightening mutual suspicions, there are also concerns by a group of leaders that DP Gachagua is disobedient.
Allies of the DP are accusing unnamed influential people within State House of “sponsoring” youthful leaders from Mt Kenya region to undermine Gachagua’s authority.
There are also concerns amongst Gachagua’s allies who have interpreted the proposed budget cuts to his office as part of a broader strategy to whittle down his influence.
The DP’s office is likely to be one of the big losers in the proposed budget rationalisation being pushed by the Treasury.
The National Treasury has, however, not stated how much it will slash from the DP’s budget.
In what appears to be retaliation, Gachagua’s camp is training its guns on the Finance Bill to vent their frustration at Ruto.
Observers said, however, the public rejection of the Bill has everything to do with the Ruto-Rigathi tension and is a demonstration of which side wields influence. “This could be strategic, by aligning themselves against significant legislative changes, they might be attempting to demonstrate their influence and relevance within the political landscape,” political analyst and JKUAT lecturer Charles Mwangi told the Star.
“This move [against parts of the Finance Bill] could be aimed at showing President Ruto that they have substantial support and can mobilise significant backing for key initiatives,” he said.
The faceoff, billed as the potential stroke that broke the camel’s back, will come with serious political ramifications.
Already fire-breathing MPs in Gachagua’s camp are opposing some of Ruto’s tax-raising measures.
The situation may go south if the DP’s forces team up with opposition legislators to shoot down the unpopular tax measures.
The President’s men and women, however, are maintaining a studious silence on the matter. Embakasi North MP James Gakuya, a close ally of the Deputy President, said some parts of the Finance Bill should be reviewed to ensure equity.
Backed by Gachagua, he is running against Nairobi Governor Johnson Sakaja in UDA constituency polls.
“In the Financial Bill we have seen exception of tractors carrying sugar exempted from paying levies while those carrying coffee are paying taxes,” Gakuya told the Star.
Manyatta MP Gitionga Mukunji while calling for a relook into some of the proposed taxes pledged to vote against proposals seeking to load taxes on factors of production.
He cited the motor vehicle tax, saying it would impose an unnecessary burden on farmers who have bought pickups and lorries on loan.
The youthful MP is also opposed to the proposed scrapping of the school feeding programme.
“It is not fair that people sit in ministries and bring proposals to Parliament; removing the feeding programme is setting up a fight with the hustlers,” Mukunji said.
“Concerning the motor vehicle tax, we can’t load taxes on lorries and, pickups that have been bought through loans. We must change that because those are factors of production.”
The Bill that is undergoing public participation is, among others, increasing the cost of basic commodities, including bread and cooking oil that is used by many households.
The controversial Bill further imposes taxes on essential services, including excise duty on mobile money and VAT on banking services.
Motor vehicle owners would also have to pay an annual motor vehicle tax amounting to 2.5 percent of the value of the vehicle.
Mbeere North Geoffrey Ruku, another Gachagua ally, said they will stay on guard to shield the four factors of production from new taxation.
“Any proposal from Treasury which does not enhance the four factors of production – land, entrepreneurship, capital and labour – should be discarded from debate in Parliament,” Ruku said.
“Adding VAT to bread? Bread a commodity consumed daily by most families. Any tax on goods consumed daily will injure the economy.”
Already edible oil manufacturers have warned of an imminent hike in the prices of cooking oil if the proposed 25 percent excise oil levy is not reversed. That means the prices of many foods containing oil would also be increased.
Political analyst Kariuki Ngunjiri was reluctant to link the resistance to the Bill to the Gachagua-Ruto falling out. He said the forces of rejection, however, are just responding to the feeling on the ground.
“I have listened to those who are against the Finance Bill. The concerns they have raised are genuine and they reflect the worries of the people on the ground,” Ngunjiri told the Star
“At the end of the day, these MPs are going back to the people who elected them.”
In what could further complicate issues for Ruto, Azimio la Umoja has also instructed its members to bring down the Bill that they argue will impoverish already-overburdened Kenyans.
Led by Wiper Party boss Kalonzo Musyoka, the leaders warned the government to withdraw the Bill or face nationwide mass demonstrations.
“All our MPs: you have been instructed to vote ‘No’. This is the time to stand with your people,” Kalonzo said.
Azimio said if the Finance Bill 2024 is allowed to pass, it will worsen the already-bad economic situation.
Azimio has 157 MPs in the National Assembly, and with the support of the Deputy President’s men, would block passage of the Bill.
Almost 20 members of the National Assembly have publicly identified with Gachagua against adopting the Bill as it stands.
They include Rahab Mukami (Nyeri MP), Njoroge Wainaina (Kieni), Mugambi Rindikiri (Buri), Geoffrey Ruku (Mbeere North), Jayne Kihara (Naivasha), George Gachagua (Ndaragwa), Geoffrey Wandetto (Tetu) and James Gakuya (Embakasi North).
Others are Benjamin Gathiru Mejja Donk (Embakasi Central), Kamande Mwafrika (Roysambu), John Mutunga (Tigania West), Moses Kirima (Imenti Central), Samuel Parashina (Kajiado South), Wambugu Wainaina (Othaya), Onesmus Ngogoyo (Kajiado North), Gitonga Mukunji (Manyatta) and Teresiah Wanjiru (nominated).
