Gachagua's Camp Gears Up to Reject Finance Bill

A group of Members of Parliament allied with Deputy President Rigathi Gachagua have initiated a strategy to oppose the Finance Bill, 2024, as a means to caution President William Ruto for allegedly sidelining his deputy.

These legislators have disclosed to The Standard that their plan involves speaking out against the Bill in churches and other public forums. They have vowed to push for amendments and engage a team of experts to thoroughly analyze the bill, aiming to avoid the mistakes of the past when the bill was passed without proper understanding. Unlike the previous Finance Bill 2023, where Kenya Kwanza allied leaders awaited a signal from the party to pass it on the floor of the National Assembly, the MPs aligned with Gachagua have decided to await his directive.

The politicians are operating under the theme "an attack against Gachagua is an affront against the Mt Kenya region and undermining Gachagua is undermining the Agikuyu community." They assert that voting against the Finance Bill 2024 will be their retaliatory game plan. In the Kenyan context, several controversial proposals have been put forward such as the Minimum Top-Up Tax, Significant Economic Presence Tax, and Motor Vehicle Tax. During a recent event attended by Gachagua, Manyatta MP Gitonga Mukunji expressed frustration over the confusing proposals presented by Cabinet members.

He criticized the suggestion to remove the feeding program from schools instead of increasing funding, arguing that it would harm the very people who put the government in power. Mukunji called on the Deputy President for guidance and urged the government to move forward rather than stand still. Mbeere North MP Geoffrey Ruku criticized the proposed Finance Bill 2024 for failing to improve the four factors of production, objecting to the proposed VAT on bread. He argues that taxing daily household goods would harm the economy, and any proposal that does not support the four engines of production should not be debated in Parliament. The goal, he asserts, should be to support these engines of production to advance the nation.

An anonymous source informed The Standard, "We must be cautious of passing such proposals as they may negatively impact our people. Our senior MPs within our party should convene and guide us on the way forward so we can avoid repeating past mistakes. We need to be vigilant and prevent any measures that could harm us when we return to our communities and have to justify them."

According to Embakasi North MP James Gakuya, the Finance Bill 2024 appears to benefit certain regions while neglecting others unfairly. Meanwhile, some MPs plan to seek guidance from experts regarding the Finance Bill. Kieni MP Njoroge Wainaina says that they want to make an informed decision rather than simply following directives to approve or disapprove the bill. The MPs hope to gain impartial views on the bill to make an informed decision.

Githunguri MP Gathoni Wamuchomba criticizes the bill, calling it worse than the Finance Act 2023 which led to the closure of businesses. Wamuchomba is particularly concerned about the top-up tax proposal which she believes will turn middle-class Kenyans into state debtors. The Top Up Tax proposal requires any business person who has not attained a threshold of income tax to receive a 5% loan from the state so that they can reach the minimum threshold. This proposal will burden middle-income earners because those whose businesses are worth Sh5 million and above will be exempt from the income tax. Wamuchomba views the top-up tax as harsh and aimed at burdening middle-class Kenyans.