President William Ruto addressed the controversial Finance Bill 2023 while speaking on June 1, 2023, at the Moi stadium in Embu, during the Madaraka Day celebration.
Ruto hailed the Finance Bill for generating a positive national discourse across the country.
“At the moment, there is a robust debate on the Finance Bill taking place everywhere in this country: Church, social places, formal and informal workplaces, all media platforms and busy markets, as well as in urban and rural gatherings.
The president noted that Kenya was a trailblazing nation for generating a national debate on public financing, taxation and other policy issues while other countries can’t.
“We are truly a trailblazing nation. Many countries struggle in vain to generate a national debate on public financing, taxation or other policy issues. In Kenya, we have easily sustained intense discourse on the Finance Bill and the Affordable Housing Policy for several weeks now,” he said.
Ruto claimed that the debate on Finance Bill 2023 has been issue-oriented and devoid of divisive ethnic rhetoric.
“The debate has remained issue-oriented, and there is no hint of divisive ethnic rhetoric at all. The cost of living is keeping all leaders, including myself, awake, and this is precisely as it should be,” Ruto said.
“Superficially, the intense national debate on housing is not about whether it is a tax or a contribution. The attention sharply focused on housing contributions is an implicit expression of ownership. People desire better information and stronger assurances regarding the custody, security, investment and return on their money,” he added.
Ruto additionally noted that the debate on the Finance Bill had opened Kenyans’ eyes to our emergence of a stakeholder republic where citizens are fully involved in shaping public policies.
“More encouragingly, the discourse on public finances and the Housing Fund has opened our eyes to our emergence as a Stakeholder Republic. Kenyans today, more than ever, are fully involved citizens in shaping public policies and making institutions accountable in the manner in which they run national affairs.”
Finance Bill 2023
The proposed Finance Bill 2023 is currently in the public participation stage.
The Bill has elicited mixed reactions from members of the public with a majority expressing their disapproval, citing the struggling economy that has seen prices of basic commodities hit the roof.
If passed into law, an employee and their employer will be required to contribute 3 per cent of their income towards the national housing scheme.
Ruto insists that the contributions would help Kenyans access affordable housing.
The President aims to increase government revenues from taxes collected to be able to fulfil his campaign promises.
Among the proposals is to raise the income tax from the current 30 per cent to 35 per cent for those earning Ksh500,000 and above.
The Bill seeks the introduction of a tax on human hair, eyelashes, switches, and artificial nails in a move that will raise the prices of these beauty products whose usage is on the rise.
If passed, the Bill will also increase the VAT on petroleum products from the current 8 per cent to 16 per cent.
Parliament will pass it
Opposition lawmaker Kisii senator Richard Onyonka recently insisted that the controversial Finance Bill, 2023, will be passed by Parliament whether Kenyans like it or not.
Speaking on Citizen TV on Tuesday morning May 30, 2023, Onyoka said that Bill will sail through Parliament owing to Kenya Kwanza’s majority in the bicameral House.
He noted that President William Ruto has marshalled his troops to pass the Bill in spite of it being very unpopular with Kenyans.
The Kisii senator added that the Bill will make Kenyans understand that choices have consequences. He sarcastically stated that Ruto should increase the tax to 100 per cent.
