What you should know about Ruto’s challenging Finance Bill alternatives
Kenyan President William Ruto is facing a difficult situation over the Finance Bill, 2024, which has been met with protests from Generation Z. The protesters demand total withdrawal of the bill from the government or complete rejection by MPs to allow them to leave the streets. The Finance Bill, 2024 is expected to enter the Committee Stage on Tuesday, where amendments will be considered and voted on a clause-by-clause basis by members of the National Assembly.
Ruto has several options to address the protesters’ anger. He could ignore the protesters and only push for the amendments that his government already promised. Last Tuesday, the Finance and National Planning Committee Chairperson Kimani Kuria announced he would move amendments to the Bill as presented by the National Treasury. Some of the amendments include the repeal of the 2.5 per cent motor vehicle circulation tax, value-added tax on bread, and excise duty on edible oil after a public uproar.
The President has the number in the National Assembly to easily have the amendments sail through when MPs meet in the committee stage on Tuesday. The Bill needs the support of a simple majority at all stages, including the crucial third reading level for final approval or rejection.
If the president decides to yield to public pressure, he can lobby MPs to take a vote after amendments to defer the Third Reading Stage. However, the Kenya Law Reform Commission says deferring a Bill at the Third Reading stage is technically “killing the Bill” as it would take six months to reintroduce it. The law allows the government to continue collecting revenue even if the Finance Bill, 2024 is deferred, but only based on the Finance Act 2023.
