How MPs Finance Committee will steer withdrawal of Finance Bill 2024 » Capital News
NAIROBI, Kenya, Jun 28 – With the President Memorandum on the Finance Bill 2024 having found its way back to Members of Parliament after a rigorous legislative process, questions have been raised on how the Finance Committee will withdraw the Bill.
The Kimani Kuria-led committee which formulated the Finance Bill 2024 for close to a month will now retreat and consider the President’s memorandum with recommendations on the deletion of all the 69 clauses of the Bill.
At the committee stage, the reservations of the President will not be subjected to any public participation as the culmination of the reservation is due to the voice of the people who signified their will through protests across 35 counties.
The house team will then write a report recommending the deletion of all clauses after which the committee of the whole house will vote on their deletion.
“The President’s Memorandum recommending deletion of all clauses of the Bill, notes that it is informed by the need to reflect the voice of the people of Kenya who have rejected the Bill in its entirety. The Committee and the House shall take this justification into account in their deliberations,” National Assembly Speaker Moses Wetangula said.
Thousands of youths took to the streets on Tuesday rejecting the Bill while accusing the president of forcing it on Kenyans.
On Wednesday, President Ruto responded to the calls of Kenyans by withdrawing it stating that it will be shelved to allow for dialogue and a collective approach to financing the current budget.
Finance Bill Timelines
Jitters have been raised on whether the Finance Bill can become law over technicalities of timelines. Article 115 of the Constitution stipulates that if within 14 days of receipt of a Bill, the President shall not assent to the Bill it will become law.
However with the Bill having been referred back to the National Assembly for reconsideration it cannot become law through mere lapse of time.
The only legal timeline facing the Finance Bill 2024 is the consideration of the reservations within 21 days once the house resumes.
The House is scheduled to resume sittings on July 23 when the clock will commence ticking on MPs approval or rejection of the President’s memorandum according to the standing orders.
“The Assembly shall, in accordance with the provision of Article 115 of the Constitution, consider the President’s reservations conveyed to the House under paragraph (1)(a) within twenty-one days of the date when the House next meets,” Standing order 156 (2) states.
When the house resumes, the Finance Committee will be required to table a report failure to which MPs will be forced to consider the Memorandum at Committee of the Whole House.
Any Member intending to negate the President’s reservations by reviving any of the 69 Clauses of the Bill is required to marshal the votes of at least two-thirds of the Members of the National Assembly, being 233 Members.
Budget Financing Concerns
The biggest headache for the legislators will be rewiring the Sh3.9 trillion budget for the incoming financial year in line with the Finance Act 2023 since the withdrawal of the Finance Bill 2024 will result to a Sh300 billion.
The Finance Bill is a piece of legislation that largely consolidates the various proposed taxation measures intended to raise additional revenue to support the budget.
The 2024/2025 budget estimates are encompassed into an Appropriation Bill which was passed by the house on Tuesday hours after the MPs passed the Finance Bill 2024.
The implication of the rejection of the Finance Bill 2024 portend that the MPs will have to go back to the drawing board through enacting a Supplementary Appropriation Bill with proposals on reduction of approved expenditure.
Austerity Measures
High-level state offices are set to face significant budget cuts announced by President Ruto.
The President emphasized that the withdrawal of the Bill would result in a budget deficit, with no additional taxation mechanism to finance the Sh3.9 trillion budget for the upcoming financial year.
He assured that operational expenditures in the three arms of government, as well as devolved units, would be reduced.
“In the Presidency and Office of the Presidency, we will reduce the confidential vote, travel budget, hospitality, purchase of motor vehicles, renovations, and other expenditures,” President Ruto stated.
The Head of State noted that various pending development projects would face setbacks due to the budget cuts, given the calls by Kenyans for a ‘leaner’ budget during these harsh economic times.
“Without the Finance Bill, it means some of the development programs amounting to Sh200 billion will have to be cut, delayed until next year, or canceled because Kenyans have said they want a leaner budget,” President Ruto said.
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