Big Win To Finance Bill 2024 As It Moves To Next Stage, Despite Protests
A total of 204 MPs voted in favour of progressing the Bill, 115 voted against it, with zero abtentions.
Viral Tea Ke Writer 
Members of Kenya's National Assembly have voted to proceed forward with the controversial Finance Bill 2024 despite uproar from members of the public.
A total of 204 MPs voted in favour of progressing the Bill and 115 voted against it, with zero abstentions.
The Bill is now set for the Committee of the Whole House stage (the Third Reading) set for Tuesday, June 25, where the whole House will sit in the form of a Committee to consider the Bill clause by clause.
At the Committee of the whole House stage, any proposed amendments are to be Bill and a vote is taken on each.
The decision follows a contentious vote after the Bill's Second Reading, signalling lawmakers' intent to move forward amidst growing opposition from citizens demanding its rejection.
Molo MP Kuria Kimani speaking during a Kenya Kwanza Parliamentary Group meeting at State House, Nairobi on June 18, 2024. /PCS
The legislative manoeuvre, however, does not confer immediate legal status upon the bill. The bill still has two more stages before before becoming law.
The Finance Bill now enters a critical phase where all MPs will have the opportunity to shape its final form through further deliberations and amendments.
A subsequent vote, expected next week, will determine whether the Bill progresses to adoption, thereby enacting it into law effective July 1.
Failure to pass the Finance Bill would precipitate a fiscal crisis. The outcome holds significant implications for Kenya's national budget and economic policy moving forward.
Led by Molo MP Kuria Kimani, the National Assembly Finance Committee had previously proposed some changes aimed at reducing the punitive measures contained in the bill.
Top of the list to be struck off is the plan to impose a 16 per cent Value Added Tax (VAT) on bread, financial services and foreign exchange transactions.
"We are all in agreement that there are two things we must do. One of them is to protect Kenyans from the increased cost of living and therefore the proposed 16 percent VAT on bread has been dropped," Kuria stated.
"To support again on reducing the cost of living, we're doing something about vegetable oil so that we do not make it expensive for Kenyans."
On the Social Health Insurance Fund (SHIF) and Housing Levy statutory deductions, the MP noted that the deductions would be allowable to Pay As You Earn (PAYE), thus saving salaried Kenyans from paying an additional PAYE on them.
"Levies on the Housing Fund and Social Health Insurance will become income tax deductible. This means the levies will not attract income tax, putting much more money in the pockets of employees," he remarked.
Regarding the Eco Levy, Kuria clarified that it would only apply to imported finished products, thus sparing those manufactured within Kenya. He further specified that diapers and sanitary towels produced domestically would not be subject to this levy.
"Consequently, locally manufactured products, including sanitary towels, diapers, phones, computers, tyres and motorcycles, will not attract the Eco Levy," he stated.
