Write Another Budget- David Ndii To Critics Over Finance Bill 2023

David Ndii, Chairperson of President William Ruto's Council of Economic Advisors, on Sunday, May 7 told off Kenyans criticising the Finance Bill 2023.

In a tweet, Ndii defended the proposals in the Bill by noting that it was drafted with expert analysis and external factors such as the International Monetary Fund (IMF) put into consideration.

He further challenged Kenyans to come up with an alternative budget that safeguards against external factors including the IMF.

President William Ruto speaking at the roadside during the launch of bitumen standard of the Njoro-Beeston-Neisut, Beeston-Lawina-Elburgon and Mauche-Sururu Roads in Nakuru County on Thursday, April 6, 2023. /TWITTER.WILLIAM RUTO

"People with issues with Finance Bill, sit down, write an alternative budget that cushions external shocks without IMF, brings down the deficit with no tax measures. And do the numbers," he wrote.

Dr Ndii was responding to a number of concerns Kenyans raised after Treasury Cabinet Secretary Prof Njuguna Ndung'u, presented the Finance Bill 2023 which proposes a wave of new taxes with specific goods set to be spared.

For instance, the Bill is proposing the amendment of Section 2 of the Income Tax Act in the definition of "winnings" and inserting new definitions of "digital content monetization", "immovable property", "person", and "related person".

Simply put, the Treasury is seeking to include a withholding tax of 15 per cent for digital content monetisation whereby content creators are contracted by companies to market their products on social media platforms where they attract a huge following.

The proposed Bill will also seek to include to the tax bracket advertisements through websites, social media platforms or similar networks by partnering with brands, including endorsements from sellers of such brands. In this case, it would mean the inclusion of the popular "paid partnerships" on Instagram (IG), a move which would hit online influencers hard.

It further seeks to include sponsorship where a brand owner pays a content creator for content creation and promotion as well as affiliate marketing where the content creator earns a commission whenever the audience of the content creator clicks on the product displayed.

Also to be included are subscription services where the audience pays a periodic fee to access the content and support the content creator.

The Bill is also proposing amendments to the amendment of the Employment Act of 2007 to compel employers to contribute to the National Housing Development Fund for each of their employees.