Ichung’wah unveils legislative reforms to boost economy » Capital News

NAIROBI, Kenya Nov 13 – National Assembly Majority Leader Kimani Ichung’wah has outlined a comprehensive package of legislative reforms aimed at fostering economic growth and making it easier for businesses to thrive. 

Ichung’wah has underscored the significance of six key bills under consideration, including amendments to public finance, tax procedures, and business and procurement laws, which he described as “critical for the continuity and resilience of the Kenyan economy.”

The proposed reforms—The Public Finance Management (Amendment) Bills No. 3 and No. 4, The Tax Procedures (Amendment) (No. 2) Bill, The Tax Laws (Amendment) Bill, The Public Procurement and Asset Disposal (Amendment) Bill, and The Business Laws (Amendment) Bill—are the result of extensive public consultations led by the Ministries of Finance and Trade. 

Ichung’wah explained that feedback gathered from citizens and business stakeholders helped shape the final drafts of the bills, which now aim to address longstanding issues faced by local industries, particularly within the manufacturing sector.

“From tax management improvements to protecting local businesses from unfair competition, these bills represent the voices and interests of Kenyans,” Ichung’wah stated. 

“They seek to create a tax system that is not only efficient but also fair, alleviating unnecessary burdens on enterprises that are critical to our nation’s growth.”

Among the reforms highlighted, Ichung’wah focused on how the bills would relieve local businesses of punitive tax arrears and penalties, which have proven a significant obstacle for many enterprises. 

He explained that the proposed tax changes would allow businesses to operate without the constant pressure of accumulating fines, thereby fostering a more robust local economy. 

The Majority Leader also noted the urgent need to address the influx of cheap imports, which have strained local manufacturers. 

“We have a duty to protect our industries from unfair competition and ensure that the manufacturing sector can grow sustainably,” he said.

The legislative package also includes incentives to retain manufacturers in Kenya amid concerns that some are considering relocating to neighboring countries, like Uganda and Tanzania, which have cultivated more attractive operating environments. 

“The Business Laws Amendment Bill offers essential incentives for the manufacturing sector to stay competitive,” Ichung’wah noted, adding that these reforms are essential to prevent a shift of businesses outside of Kenya, a trend that could have significant economic repercussions.

The Public Procurement and Asset Disposal Act (Amendment) Bill was another critical focus. Ichung’wah urged legislators to review its contents closely, emphasizing its potential to streamline public procurement processes, reduce inefficiency, and curb misuse of funds.

“Transparent and effective procurement is key to good governance and economic stability, and this bill will bring necessary reforms to public asset management,” he said.

In a move to ensure Parliament is prepared for a comprehensive debate, Ichung’wah announced plans for an internal briefing, or Kamukunji, upon the return of the substantive Speaker. 

This meeting will give legislators an opportunity to explore each bill in detail and understand the specific impacts these reforms could have on the Kenyan economy. 

“We want every member to be fully informed to support thoughtful and robust debate on these critical issues,” Ichung’wah said.

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