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President Ruto to meet his troops in Parliament to plot passage of Finance Bill

President William Ruto chairs a Cabinet Meeting.

Photo credit: PCS

What you need to know:

  • Members of the National Assembly from both the government and opposition side are already facing pressure to reject the Bill from the public, the civil society and businesses that will be affected by the plan to raise the additional Sh347 billion in the next financial year.
  • Mr Odinga’s Azimio has already rallied MPs affiliated with the alliance to vote against the Bill.

President William Ruto is expected to chair a crucial Kenya Kwanza Parliamentary Group (PG) meeting at State House, Nairobi on Tuesday morning to whip his legislators to back the contentious Finance Bill, 2024, amid an escalating rift between the Head of State and his Deputy Rigathi Gachagua.

Already Mr Gachagua’s allies led by Nyeri Governor Mutahi Kahiga have made their position clear to allied parliamentarians to shoot down the Bill, which will be tabled in Parliament today for the Second Reading.

Coupled with vicious opposition from the Raila Odinga-led Azimio la Umoja One Kenya, President Ruto takes no chance in mobilising his legislators to support the Bill.

National Assembly Majority Whip Sylvanus Osoro told the Nation on Monday that President Ruto will chair the critical PG meeting from 7 am Tuesday, June 18.

“It is a normal party meeting to take place at State House, Nairobi beginning 7am,” Mr Osoro said, without giving the agenda.

The Nation has established that President Ruto is keen to ensure passage of the Bill which contains key measures and policies that are central to his economic agenda.

The passage of the Bill would enable him to implement his fiscal plans including taxation changes, budget allocations, and funding for government projects, as well as generating government revenue.

Seeking to raise an additional Sh347 billion, it outlines new taxes, adjustments to existing taxes, and other financial measures necessary to fund public services and development projects.

Members of the National Assembly from both the government and opposition side are already facing pressure to reject the Bill from the public, the civil society and businesses that will be affected by the plan to raise the additional Sh347 billion in the next financial year.

Mr Odinga’s Azimio has already rallied MPs affiliated with the alliance to vote against the Bill.

The Orange Democratic Movement (ODM) party led by Mr Odinga, through its Secretary-General Edwin Sifuna, has written to its 86 MPs to suspend any engagements that may make them out of the capital city as the House convenes to debate the Bill.

"I have been instructed by the Party's Central Management Committee to write to you that you be present in the House for the duration of the consideration of this Bill - from its tabling to voting," reads Mr Sifuna’s letter in part dated June 13.

It adds: "You are further requested to suspend any other engagements that would otherwise see you out of Nairobi during this critical period."

Last Week, Azimio directed its lawmakers to shoot down the Finance Bill, 2024, citing "massive budgeted corruption and “punitive taxes" that will lead to closure of businesses and an economic shutdown.

In a statement read by Wiper Party leader Kalonzo Musyoka, the alliance alleged a Sh1 trillion “budgeted corruption" in the Sh3.914 trillion expenditure plan for the 2024/25 financial year.

The "budgeted corruption", the opposition said, is presented in the form of a Sh23.6 billion increase in recurrent expenditure. The alliance specifically flagged increased allocations to the Office of the Executive President (Sh1.2 billion), the Office of the Deputy President (Sh678 million), the Ministries of Defence (Sh11 billion), Foreign Affairs (Sh1.4 billion), National Treasury (Sh6 billion), Roads and Transport (Sh1.3 billion) and Cooperatives and SMEs (Sh2 billion).

"We highlight the following misplaced allocations: The National Treasury has Sh26 billion more in the name of development and the State Department for Devolution has an increase of Sh2.6 billion in development expenditure. If this regime believes in the success of devolution, these funds should form part of the Equitable Share to county governments," the coalition said in its statement.

President Ruto, however, has to contend with the heat initiated by his own Deputy, Mr Gachagua, from within the Government, whose allies insist that the Bill proposes punitive taxes and as such must not be allowed to see light of the day.

“…of late the President has been chest-thumping. But let people not lie to him, that Finance Bill you want to pass to increase taxes, we will stop it. We will speak and the people are telling us that the taxes are already too much. Things are not rosy again,” Mr Kahiga charged.

During an interview on NTV on Sunday night, Mr Kahiga claimed that the office of the Deputy President has faced budget cuts aimed at setting him up for failure, in an escalation of the rift between the country’s second in command and his boss.

“The office of the Deputy President has faced budget cuts in the budget allocation. What is he expected to do with that? We are only setting him up for failure. Everything is being done to ensure the Deputy President’s office is not working as it should be,” raged Kahiga said.

Ruto vs Rigathi: Mutahi Kahiga weighs in

The Church has also voiced its concerns against the passage of the Finance Bill, 2024, hence piling more pressure on the Kenya Kwanza legislators to reject the Bill amid calls by Mr Ruto to have it approved.

“We observe that addressing corruption and halting the wastage of available resources would generate sufficient revenue to support essential services, thereby reducing the burden on Kenyans who are already struggling with the high cost of living,” the Bishops said in a statement signed by General Secretary Fr James Mwaura.

ODM Deputy Party leader Ali Hassan Joho has also threatened that the party will take stern action against legislators to go against its wishes to approve the Bill.

"We have emphasised previously that every party upholds principles and values, and as ODM, we stand for certain beliefs. If someone fails to comprehend this, we will deal with them," he said.