MPs Pass Finance Bill, 2023

On Wednesday night, Members of Parliament passed the proposed Finance Bill, 2023 after a third reading by the National Assembly Finance and National Planning Committee chairman, Kuria Kimani. 

The Bill now awaits President Ruto's assent for the proposals to become law. This implies that Kenyans will have to dig deeper to fund Ruto's first budget as Head of State. The bill was passed even as the Opposition and members of the ruling party had a heated exchange of views towards the proposals of the bill.

The National Assembly debated the Bill which had garnered 87 proposed amendments, several of which were accepted on Tuesday night. Key among the proposals passed was the 16% Value-Added Tax on fuel, a rise from 8%. Almost 184 MPs, mainly from Kenya Kwanza, voted in favour of the bill save for Githunguri MP Gathoni Wamuchomba who stood against it. On the other hand, 88 MPs, largely from Azimio, opposed the amendment. 

A 5% tax will be imposed on digital creators. This was initially proposed to be 15%. Additionally, a 12.5% and 16% withholding tax will be applied to betting and insurance. This legislation has been criticized by Kenyans, along with the opposition faction, for being too harsh and taking advantage of citizens who are already burdened by the high cost of living.

The government insists that the monies are required to revamp the economy, claiming that they found it in a bad state. President William Ruto has maintained that his administration will not use borrowing to finance government projects or pay salaries.