Nairobi Woman Rep Esther Passaris Wants Ruto to Increase Withholding Tax to Punish Banks
Nairobi’s Woman Representative, Esther Passaris, has entered the discussion surrounding the Finance Bill 2024. This bill proposes various tax increases and the introduction of new taxes, aiming to curb Kenya’s reliance on debt to fund government projects, a move spearheaded by Deputy President Ruto.
Expressing her views on Thursday, May 16, Passaris advocated for a significant hike in the withholding tax on interest income from infrastructure bonds, from 5% to 20%. Her rationale behind this proposal is to dissuade banks from funneling funds primarily into government bonds at the expense of lending to individuals and businesses.
In her words, “The proposed 5% withholding tax on the interest income earned from infrastructure bonds should be increased to 20% to effectively discourage commercial banks, pension funds, and Saccos from solely financing the government. They should prioritize supporting private enterprises rather than the government.”
While justifying the need for these tax adjustments, Passaris highlighted the pressing issue of unpaid bills burdening counties. Additionally, she stressed the importance of improving tax collection processes to prevent the mismanagement and misallocation of public funds.
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She asserted, “It’s crucial to tighten our fiscal belt now and demonstrate this through concrete actions. Key sectors like health, education, and security should be off-limits. A populace in good health and equipped with skills within a secure environment is inherently more productive. A prosperous nation starts with a healthy one.”
Passaris’ remarks follow her declaration of support for the Finance Bill 2024, despite widespread discontent among Kenyans due to its proposed tax hikes. In a TikTok video, she praised President William Ruto for his dedication to serving the nation, underscoring her ability to acknowledge and commend positive leadership regardless of her political affiliations. She stated, “My alignment with Azimio doesn’t hinder me from backing the President or appreciating his effective governance. I admire the President and his commitment to public service.”
In 2023, Passaris had previously voted in favor of a similar Finance Bill, resulting in a fine of Ksh250,000 imposed by Azimio. Nevertheless, she remained steadfast in her decision, arguing that the bill was ultimately beneficial for the Kenyan populace.
Nairobi Woman Rep Esther Passaris Wants Ruto to Increase Withholding Tax to Punish Banks