By President William Ruto, the president of Kenya, has chosen not to sign the 2024 Finance Bill amidst ongoing protests, causing significant repercussions in Kenya’s political and financial sectors. This move suggests potential shifts in the country’s fiscal policies.
The Finance Bill, crucial for outlining the government’s revenue and expenditure in the upcoming financial year, will now return to Parliament for further deliberation. This decision comes just hours before Parliament’s scheduled recess, adding urgency to the proceedings.
Sources within the administration indicate that President Ruto’s decision stems from concerns over specific provisions in the Bill requiring additional scrutiny and possible amendments.
Key issues include proposed tax hikes and budget allocations that have sparked intense debates among lawmakers and stakeholders.
Parliament is expected to reconvene urgently to address the President’s reservations, aiming to finalize necessary revisions before the recess. The outcomes of these deliberations will be crucial in shaping the future course of the Bill and the broader financial strategies of the government.
Earlier, chaos erupted at Kenya’s parliament building as thousands of protesters opposed to the new finance bill stormed the premises, leading legislators to evacuate in what is seen as the most direct challenge to the government in decades.
The proposed measures that ignited protests include new levies on essential goods like bread, vegetable oil, and sugar, alongside an annual 2.5% motor vehicle circulation tax based on car value.
Also an “eco levy” on most manufactured items, including sanitary towels and diapers, is also under consideration. Additionally, the bill seeks to raise existing taxes on financial transactions.
Protesters argue that these tax hikes will stifle the economy and further burden Kenyans already grappling with high living costs. This opposition reflects longstanding frustrations over the government’s fiscal policies.
President William Ruto’s administration faced similar resistance last year when it introduced a housing tax and increased the top personal income tax rate through the Finance Bill, sparking widespread anger, street protests, and legal challenges.
The protesters had demanded that lawmakers reject the controversial bill, emphasizing the growing discontent over Kenya’s persistent cost of living challenges.
