Proposed Finance Bill Sails Through as 176 MPs Vote in Favour

On Wednesday, Kenyan Parliamentarians voted in favour of the Finance Bill 2023, paving the way for it to be read a second time. 

After a rigorous debate in the House, 176 MPs voted to endorse the tax regulations, with 81 out of 257 in disagreement. The Bill now moves to the committee of the House, where Members will have the opportunity to propose their amendments. 

The MPs cast their votes in the following way: Richard Yegon from Bomet East voted in the affirmative, whereas Charles Onchoke (Bonchari), Raphael Wanjala (Budalangi), Patrick Kibagendi (Borabu), and Jack Wamboka (Bumula) all voted no. Komingoi Kibet Kirui (Bureti) and Korir Adams Kipsanai (Keiyo North) both voted yes. Kipkoech Gideon Kimaiyo (Keiyo South), Beatrice Kemei (Kericho), John Njuguna Wanjiku (Kiambaa), and John Waithaka Machua (Kiambu) all voted in favour as well.

On Tuesday, the National Assembly’s Finance and National Planning Committee revealed the amended Finance Bill, 2023 after the public offered their opinions on the document. The content of the Bill has received a lot of criticism from Kenyans, who considered some levies as oppressive. President William Ruto and Azimio leader Raila Odinga had notified their lieutenants that they would monitor the way they vote on the legislation. Even though certain levies were amended, others remained the same.

The new bill fronted by President Ruto aims to generate extra revenue for the Sh3.59 trillion budget. To achieve this, it proposes a housing levy on workers’ salaries, increased taxes on fuel, and new taxes on beauty products. The Molo MP Kimani Kuria-led committee ruled to keep the 16% VAT on petroleum goods, which will make the tax on petrol equal to that of kerosene and diesel. The proposed Value Added Tax (VAT) rate remains unchanged at 16%.

A major change to the bill is that the 15% for Digital Content Creators has been reduced to 5%. Additionally, the 3% housing levy has been cut in half to 1.5%.