"Through Public Participation, the People Have Had a Say": President Ruto on Revised Finance Bill.

The Kenya Kwanza Parliamentary Group convened at State House Nairobi on Tuesday, where MPs and Senators were briefed on significant amendments to the Finance Bill 2024 by Finance Committee Chairman Kimani Kuria.

During the meeting, President William Ruto emphasized that the revisions reflect input from public participation sessions and various stakeholders. "We are going to end up with a product in Parliament that came from the Executive and has been interrogated by the Legislature. Through public participation, the people of Kenya have had a say,” President Ruto stated.

Key amendments to the Finance Bill include the removal of the proposed 16% VAT on bread, transportation of sugar, financial services, foreign exchange transactions, and the 2.5% Motor Vehicle Tax. Additionally, the proposed increases in mobile money transfer fees and Excise Duty on vegetable oil have been rescinded.

Levies on the Housing Fund and Social Health Insurance will not attract income tax, ensuring more disposable income for employees. The Eco Levy will target imported finished products contributing to e-waste, sparing locally manufactured items like sanitary towels, diapers, phones, computers, tyres, and motorcycles.

President Ruto highlighted the government's efforts to curb the importation of locally producible goods to bolster local manufacturing and protect jobs. "The stability you see in the foreign exchange regime is a result of our deliberate policies to reduce imports of things that are produced locally," he explained.

Other notable changes include raising the VAT registration threshold from KSh5 million to KSh8 million, exempting many small businesses from VAT registration. The Kenya Revenue Authority's electronic invoicing system, ETIMS, has been rescinded for farmers and small businesses with turnover below KSh1 million.

The revised Bill also imposes excise duty on imported table eggs, onions, and potatoes to protect local farmers. Excise duty on alcoholic beverages will now be based on alcohol content rather than volume. Furthermore, the pension contributions exemption will increase from KSh20,000 per month to KSh30,000.

President Ruto reiterated the government's commitment to education, describing it as the "greatest equaliser." He announced KSh18 billion for hiring Junior Secondary teachers on internship and plans to recruit 20,000 interns next month. "The money we are putting into education is not an expenditure; it is an investment because we are investing in the future of our children,” he said.

Addressing the collaboration between the Executive and Legislature, President Ruto noted the benefits of tough economic decisions, citing a drop in inflation from 9% in 2022 to 5.1% in May and the strengthening of the Kenyan shilling against the dollar. He outlined the goal of achieving a balanced budget within three years to reduce borrowing and ensure fiscal sustainability.

The new university funding model, according to President Ruto, has improved public universities' financial situations. He noted that wealthier parents have not applied for scholarships, leaving more funds available for students from low-income families.

Deputy President Rigathi Gachagua remarked that higher taxes on high-alcohol-content beverages would aid in combating alcoholism. On the increased funds for the National Government Constituency Development Fund, he said it would empower MPs to initiate transformative development projects in their constituencies.

Prime Cabinet Secretary Musalia Mudavadi assured that the Kenya Kwanza administration remains committed to making decisions for the nation's benefit rather than succumbing to populist pressures.

Embu Governor Cecily Mbarire, also the chairperson of the United Democratic Party (UDA), urged legislators to pass the Finance Bill, highlighting its potential to spur significant development.

Finance Committee Chairman Molo MP Kimani Kuria stated that the Bill aims to generate an additional KSh302 billion in revenue, boosting total projected revenues to KSh3.3 trillion. Budget and Appropriations Committee Chairman Kiharu MP Ndindi Nyoro noted that the Bill would fund the country's development agenda, prioritizing education and agriculture.

President Ruto concluded the meeting by urging legislators to focus on implementing programs that would transform the lives of the Kenyan people. “The people were so united in electing us; let us also be united in serving them,” he said.