By: Joseph Mutua Ndonga
Worth Noting:
- Ndindi, the Kiharu MP, further stated: We have also listened to parents, guardians and other stakeholders in education sector. So, we have reinstated the school feeding programme. We have also allocated enough funds to employ Junior Secondary School (JSS) teachers on permanent and pensionable terms.
- Despite the report addressing most of concerns raised by those opposed to it, this did not stop the Nairobi based civil society groups from holding their demonstration. The protestors who carried placards and flyers with inscription ‘Occupy Parliament’ chanted anti-President William Ruto slogans.
- This is not the first time we are witnessing this. Similar protests had rocked the country during the tenures of former Presidents Daniel Arap Moi, Mwai Kibaki and Uhuru Kenyatta.
The financial report prepared by the chairpersons of the two powerful committees of the National Assembly namely Budget and Appropriation and Finance and National Planning left no doubt that the members had taken into consideration the views of Kenyans opposed to the Finance Bill 2024.
While tabling the report in parliament, they highlighted a raft of tax proposals that had been termed as punitive.
As you can see in our report, we have clustered taxes in contention into three categories. We have removed some and we have proposed zero rating and exemptions on others.
Noting that the priority of this house is to safeguard the interests of Kenyans, we have no doubt our report will be adopted.
The Chairman of Budget and Appropriation Committee Ndindi Nyoro had a few days earlier set the ball rolling when he unveiled a list of some of the taxes that would be dropped.
They included proposed 16 percent VAT on bread; 2.5 percent motor vehicle tax. Eco levy will also be adjusted with baby pampers, sanitary towels and other products being zero-rated.
Ndindi, the Kiharu MP, further stated: We have also listened to parents, guardians and other stakeholders in education sector. So, we have reinstated the school feeding programme. We have also allocated enough funds to employ Junior Secondary School (JSS) teachers on permanent and pensionable terms.
Despite the report addressing most of concerns raised by those opposed to it, this did not stop the Nairobi based civil society groups from holding their demonstration. The protestors who carried placards and flyers with inscription ‘Occupy Parliament’ chanted anti-President William Ruto slogans.
This is not the first time we are witnessing this. Similar protests had rocked the country during the tenures of former Presidents Daniel Arap Moi, Mwai Kibaki and Uhuru Kenyatta.
During the public participation, many Kenyans reasoned; Yes, we agree paying tax is a legal civic duty. However, some of the taxes contained in Finance Bill 2024 are very high. The burden will be too heavy particularly to the low income earners.
So, we recommend they should be reduced.
President William Ruto had earlier revisited the topic of taxation.
My critics were peddling a false narrative that Kenyans were paying highest taxes.
In the contrary, they were paying the lowest tax in the continent of Africa. It is currently capped at 14 percent.
In other countries of Africa, the tax ranges between 22 to 25 percent.
In Europe, he gave an example of France where the tax is capped at 45.
President Ruto further reiterated that he intended to increase the taxes. My plan is to leave the tax at 22 percent when my two terms come to an end in 2032.
President Ruto however noted. Constitutionally, the mandate to enact the Finance Bill is vested in Parliament. I hope the House will support me.
Turning to his critics, he noted that they would want Kenyans to believe that this would make them more poorer.
The opposite is the true position. Dr Ruto said his interventions are designed to ensure a faster growth of our economy.
This will herald in creation of more jobs in both formal and informal sectors. As such, Kenyans will put more money into their pockets and smile all the way to the bank.
I had earlier listened to President William Ruto’s speech when he led the nation to mark this year’s Labour Day cerebration. He renewed his call and stated.
Everyone of us has a duty to develop our country.
When I assumed office, the economy was in bad shape.
I promised you that I will fix it and steer it back on track.
The pain of tightening your belt was for a short time.
Today the cost of living is coming down. You are buying a 2kg packet of maize flour (Unga) at Sh100. When i took over, the price of the same packet was Sh230.
The prices of other essential commodities have also drastically come down.
In an article I had earlier written in this column, I zeroed in on a President Ruto’s speech during the ceremony organized by Kenya Revenue Authority (KRA) to cerebrate and reward Kenyans who were paying their taxes in full and within the timelines stipulated in law.
The President minced no word in praising them for being a key pillar of enabling his government to deliver services to Kenyans.
The government does not have monies of its own and it majorly relies on these revenues.
The Ruto administration ascended to power on a platform of a raft of promises. The manifesto hinged on Bottom Up Economic model had been built from five key areas.
With this in mind, the President noted. Without you, we will not be able to do the implementation. So, I salute and commend you. Indeed, you are our Mashujaa.
The previous government’s appetite of borrowing foreign loans was very high. This was hampering the growth of our economy. As such, I told you I will not follow that route. A time has come for us to live within our means.
I know some Kenyans were not paying taxes and others were not fully complying with tax obligations.
I urge them to emulate these patriotic Kenyans, Mashujaa. Paying tax is a civic duty, Dr Ruto further noted.
In the meantime he asked KRA to expand the scope of tax collection. This is by ensuring that all Kenyans were brought on board.
Having set the targets, you have a duty to meet them.
He however cautioned KRA against harassing Kenyans when collecting the taxes. You should handle this matter in a humane and respectable manner.
If a Kenyan is not willing to pay taxes, explain to them why it is important to pay and the gains they would reap.
Dr Ruto further noted. I know some of you fear that monies would be stolen by some greedy and corrupt state officials. This is because the previous administrations were associated with mega corruption scandals. Mark my words.
Under my watch, this will not happen.
Early this year, President Ruto became the first Kenyan head of state to personally file his tax returns at Kenya Revenue Authority (KRA) headquarters in Nairobi.
At the time, he challenged KRA to pull up their socks.
As a country, we are facing a serious financial crisis and this has incapacitated our job of delivering services to the people of Kenya.
He vowed to deal firmly with KRA rogue officials.
Your days are numbered. I know some of you do not mean well for the country. You are out to sabotage my administration.
At the time the president fall short of saying some of KRA officials owed loyalties to his political opponents and they were serving their interests.
If you don’t meet the targets, the message is clear. You want me (President) to resort to imposing more taxes to Kenyans and borrowing foreign loans. In so doing, you hand my opponents political fodder to fight me.
President Ruto is facing challenges similar to those encountered by his predecessors- Mwai Kibaki and Uhuru Kenyatta.
For President William Ruto, I have no reason to doubt his commitment to slay the dragon of corruption.
The other day he set the ball rolling when he sacked a PS and dozens of other top state officials linked to KEMSA and toxic sugars scams.
He asked the anti-graft bodies to carry out speedy investigations and bring the culprits to book.
I hope they will not let President Ruto down by looking for excuses and scapegoat.
Joseph Mutua Ndonga is a writer and political analyst based in Nairobi
