Finance Bill 2024 Report Set to Be Presented in Parliament Next Week, Says Wetangula.

The National Assembly's Departmental Committee on Finance and National Planning is set to table a crucial report next week following President William Ruto's rejection of the controversial Finance Bill 2024. Speaker Moses Wetangula announced this move, setting the stage for an intense parliamentary debate.

President Ruto officially submitted a memorandum to Speaker Wetangula on June 26, 2024, seeking to withdraw the Finance Bill 2024 entirely. This action followed his verbal withdrawal of the Bill a day earlier, which ignited debates over his constitutional authority to make such a decision while Parliament was in recess.

Upon resumption of parliamentary sessions on July 23, Speaker Wetangula addressed Members of Parliament, noting the ongoing evaluation of the memorandum by the Departmental Committee on Finance and National Planning. He emphasized the committee’s deadline to present its findings by July 30, 2024.

"Now that the regular sittings of the House have resumed, I wish to restate the Standing Order 154 (2) requires the House to consider the President's reservations within twenty-one days when the House next meets," stated Wetangula. "The Committee is yet to conclude its consideration and shall table a report to the House on or before Tuesday, 30th July 2024."

File photo of Kenya parliament during session.

Wetangula also highlighted the constitutional intricacies surrounding the Bill's enactment. He referenced Article 115 (6) of the Constitution, which provides a timeline for the President to either assent to a Bill or return it to Parliament with reservations. He clarified that this period does not automatically convert the Bill into law.

"The Constitution should be interpreted broadly and liberally in accordance with the guiding principles provided under Article 259(1) of the Constitution," Wetangula explained. "It becomes evident that the fourteen-day period specified in Article 115 is a timeline for the President's action and not a date when the Bill automatically becomes law."

Further adding to the complexity, Wetangula pointed out that any attempt to reinstate clauses from the Finance Bill 2024 would require substantial support from at least 233 MPs, as mandated by Article 115(4) of the Constitution.

Addressing the fiscal implications of the Bill’s rejection, Wetangula warned of a significant financial gap estimated at Ksh.346 billion. This deficit could severely impact funds allocated to counties under the Division of Revenue Act, 2024.

"It is estimated that the rejection of the Finance Bill, 2024 will occasion a financial gap of approximately Kshs.346 billion," he said. "Article 219 of the Constitution obligates the national government to transfer the equitable share apportioned to counties without reduction."

Wetangula indicated that the Division of Revenue Act, 2024, might need revisions to reflect the current economic conditions accurately. Additionally, the Senate is expected to reconsider the County Allocation of Revenue Bill, 2024. The Chairperson of the Budget and Appropriations Committee also plans to introduce amendments to ensure proper fund allocation and budget financing.

"With regard to the monies already appropriated by the House to finance the Budget for FY 2024/25, I wish to remind the House of the Notification I issued on 12th July 2024," Wetangula added. "The Supplementary Estimates seek to rationalize the FY 2024/25 Budget Estimates to align with the Revised Fiscal Framework and actualize expenditure cuts across the three arms of Government, Constitutional Commissions and Independent Offices."

The parliamentary session next week promises to be a pivotal moment as lawmakers grapple with the fiscal and legislative ramifications of the Finance Bill 2024. All eyes will be on the Departmental Committee on Finance and National Planning's report and the ensuing debate in the House.