President Ruto Hints at New Tax Plan After Finance Bill Withdrawal Amid Protests
President William Ruto has hinted at introducing new tax measures to address a Sh346 billion revenue shortfall after the withdrawal of the controversial Finance Bill 2024. The bill faced significant opposition, leading to protests where youth stormed Parliament and caused damage during the debate.
The President’s statements indicate a potential Tax Laws (Amendment) Bill, which could allow Parliament to introduce new tax regulations outside of the Finance Bill. This amendment typically focuses on revising individual laws that govern various taxes.
“We had plans for an additional Sh300 billion in the Finance Budget, 2024, but it was rejected. I have discussed with Malulu Injendi (Malava MP) and other MPs to come up with new revenue-raising measures. When you lose one child, do you stop trying for another?” President Ruto remarked.
“We will revisit the Finance Bill and come up with strategies to ensure funds for development,” he added while addressing residents in Kakamega County during the launch of a Sh2 billion water project in Namanja, Malava.
The President explained that the scrapped Finance Bill had earmarked funds for essential projects like roads, water, electricity, and support for dairy, sugarcane, and coffee farmers, all of which are now in jeopardy.
Earlier, President Ruto warned that withdrawing the Finance Bill would negatively impact hiring 46,000 junior secondary school teachers and hinder the rollout of universal healthcare.
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Following the Finance Bill’s withdrawal, President Ruto has reached out to opposition allies, including appointing John Mbadi as Treasury Cabinet Secretary in what is now a more inclusive government.
During his vetting, Mr. Mbadi proposed extracting non-contentious elements from the withdrawn Finance Bill and bringing them to Parliament with adequate public participation to secure necessary revenue.
“The beneficial provisions in the Finance Bill, if presented with proper engagement, could still benefit Kenya. However, the public felt unheard, leading to the bill’s rejection,” Mbadi informed Parliament.
The Sh2 billion Malava Water Project is expected to benefit approximately 42,000 residents across the Shirugu-Mugai, Butali-Chegulo, and West Kabras wards.
President Ruto also pledged to connect an additional 35,000 Kakamega households to electricity under the Rural Electrification Program for Sh2.7 billion. Negotiations are underway with development partners like the European Union (EU) to advance the program.
He noted that contractors are already surveying the areas before starting the electricity connections.
In addition, President Ruto highlighted plans to complete stalled road projects in Kakamega County, such as Ikoli-Malava, Malava-Samitsi, Airport-Shinyalu, Lurambi-Navakholo-Musikoma, and Shianda-Navakholo-Malava.
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Addressing the sugarcane pricing issue, the President assured farmers that he would engage county leaders in finding a sustainable solution.
Kakamega, the home county of Cooperatives Cabinet Secretary Wycliffe Oparanya, witnessed Oparanya expressing gratitude for his cabinet appointment and vowing to deliver on his duties.
“I am committed to assisting the President in delivering development across the nation,” Oparanya declared.
Formerly a vocal critic of the Kenya Kwanza administration, Oparanya now states that he will focus solely on development, distancing himself from political intrigues.
“Now that I’m inside the government, I can see the good plans President Ruto has for Kenyans,” he added.
The President was accompanied by several Western region leaders, including Kakamega Governor Fernandes Barasa, his deputy Ayub Savula, Senator Boni Khalwale, and various MPs such as Elsie Muhanda (Woman Representative), John Waluke (Sirisia), Tindi Mwale (Butere), Innocent Mugabe (Likuyani), Christopher Aseka (Khwisero), and Emmanuel Wangwe (Navakholo).
Governor Barasa celebrated the Sh2 billion water project as a major step towards his “water at the doorstep” (Amatsi khumuliango) initiative, which aims to provide water access across Kakamega.
He affirmed his support for President Ruto’s inclusive government, which now features his predecessor, Wycliffe Oparanya.
“We appreciate the appointment of Mr. Oparanya to your cabinet. He is a reliable leader, and I trust he won’t disappoint,” Barasa stated.
Cotu Secretary General Francis Atwoli encouraged Governor Barasa to collaborate closely with Oparanya for greater development in Kakamega.
President Ruto’s broad-based government has been touring various regions, including Embu, Mombasa, Uasin Gishu, Murang’a, and Kisii.
President Ruto Hints at New Tax Plan After Finance Bill Withdrawal Amid Protests
