Parliament witnessed a heated session on Wednesday as MPs debated the divisive Financed Bill Bill, 2024, ahead of Thursday’s vote.
The bill outlines revenue-generating measures the government intends to employ to finance the 2024-25 budget.
Pro-government lawmakers vouched for the controversial taxes despite widespread protests by Kenyans against the proposals they term as punitive.
Their minority counterparts, on the other hand, pushed for rejection of the bill in toto, terming it a document of stagnation.
A showdown is looming on Thursday afternoon during voting on the bill clause by clause.
During the Second Reading, MPs aired their views and made oral submissions about what they made of the contents of the taxation measures.
At the centre of the contest is the Sh150 per kilogram eco levy that is set to be charged on imported finished goods, as well as the 10 per cent export promotion levy.
The eco levy – according to drafters of the bill – is meant to address the problem of plastic pollution.
The proposed tax will affect the prices of diapers, rubber tyres, batteries, smartphones and cameras.
The Finance committee's recommendation to increase fuel levy by Sh9 per litre (39 per cent above the current Sh18) is also expected to trigger a divisive debate.
Yesterday, National Assembly Majority Leader Kimani Ichung’wah defended the proposal as a sure way to grow local manufacturing industries.
“What is so wrong with us protecting our manufacturing sector? To the young people mobilised in the universities to send messages to MPs, this Finance Bill is about creating jobs for you,” Ichung’wah said.
The opposition MPs were, however, adamant on their call to reject the tax proposals.
National Assembly’s Minority Whip Junet Mohammed warned that the bill in its current form would only make life miserable for most Kenyans.
“How many times are we going to change the process of taxation in this country? We are discussing economic growth. You want to tell me this kind of bill will enhance economic growth in this country? Is that what we are telling Kenyans? ” posed the Suna East.
No amount of arguments by Kenya Kwanza could move the opposition lawmakers, who insisted on total rejection of the bill plus the proposed amendments.
Leader of the Minority in the National Assembly Opiyo Wandayi piled pressure on the government to withdraw the bill, terming the committee’s proposed amendments not good enough.
“What is so unique with this government that for two years in a row that the matter of Finance Bill is causing hullabaloo. It is commotion, it is causing pandemonium until young children are coming out of streets,” Wandayi said.
“If we do not take Super Tuesday as a wakeup call, I don’t know what else would be a wake up call for the country. I want to tell the President, whom I served with in the same committee in Parliament, fire those guys that you have hired who are giving you economic advice. They are not helping you at all,” Suba North MP Millie Odhiambo said.
But the majority side held on to their guns, outlining the benefits of the proposals.
Ichung’wah defended proposed taxes on imported goods, saying it is the only route to ensure growth of local manufacturing industries.
His deputy, Kilifi North MP Owen Baya, said the passage of the bill is the only way to unlock some of the goodies contained in the budget.
“I am sure many other issues that Kenyans have raised but I want to look at the budget. Today, members of this House will have more money for CDF than before because it was proposed in the budget and it is going to be financed in the Finance Bill,” Baya said.
“My point is, Kenyans have the option to either avoid paying taxes, focus on borrowing and kill the economy or pay taxes and slightly tighten our belts especially where it matters most,” Majority Whip Silvanus Osoro said.
The debate on the bill that is in its Second Reading will continue on Thursday before the lawmakers take a vote.
The bill will then proceed to the Third Reading when MPs make legislative proposals to amend sections of the bill in line with their suggestions.
National Assembly Speaker Moses Wetang’ula already directed that all members with amendments must submit them before 1pm on Thursday.
To sail through, an amendment must be supported by a simple majority during the amendments in plenary, known in parliamentary parlance as Committee of the Whole House.