President Ruto Signs Finance Bill Into Law

President William Ruto on Monday assented to the Finance Bill 2023, after the National Assembly voted in favour of the proposed tax measures aimed at raising the Sh3.6 trillion budget.

The Finance Bill is the first budget for the Kenya Kwanza administration, which has set up five core objectives in their Bottom-up Economic Transformation Agenda. The huge sum of money will be shared between recurrent expenditure (Sh1.5 trillion), development (Sh718 billion), and debt repayment (Sh986 billion). Kuria Kimani, Chairman of the National Assembly Finance and National Planning Committee, pushed the Bill through its third reading.

As a result, Kenyans will have to bear the brunt of funding Ruto's first budget. In the National Assembly, the debate between the Opposition and the ruling party over the proposed amendments was heated, and eventually, 87 of those amendments were passed, one of which was a rise in the value-added tax on fuel from 8% to 16%. 

184 MPs, mainly from the Kenya Kwanza faction, voted in favour of the bill with the exception of Gathoni Wamuchomba from Githunguri. In contrast, 88 MPs, mainly from Azimio, voted against the amendment. The Housing levy, initially proposed at 3%, was also passed but revised to 1.5% of gross pay and converted to a tax. Initially, the plan was for the levy to be saved and collected by Kenyans after seven years. 

Digital creators will be charged a tax of 5%, which was initially set at 15%. Additionally, the Betting and Insurance withholding tax will be set at 12.5% and 16%, respectively.