Kenyan President William Ruto has declined to assent to the Finance Bill, 2024, sending it back to Parliament just before they are set to break for recess on Wednesday.
This decision comes with a series of proposed amendments that Members of Parliament must now consider.
The President’s refusal to sign the bill is a significant move, emphasizing the importance of certain modifications he believes are necessary. Parliament now faces the option to either amend the bill in accordance with Ruto’s reservations or pass it a second time without making any changes.
When returning the bill, Ruto will highlight specific areas that he thinks need alteration. Should MPs decide to fully accommodate the President’s reservations, the Speaker will resend the amended bill to Ruto for his assent. Alternatively, Parliament can pass the bill a second time with or without amendments that do not fully address the President’s concerns, but this would require the support of two-thirds of the members.
Given that MPs are scheduled to begin their recess on Thursday, lasting until July 23, the Speaker may have to recall Parliament if the President returns the bill during this period.
The Finance Bill initially introduced several tax proposals, such as a 16 percent VAT on bread, excise duty on vegetable oil, VAT on the transportation of sugar, a 2.5 percent motor vehicle tax, and an eco levy on locally manufactured products. However, these proposals were later dropped.
The bill successfully passed through the committee of the whole house after these amendments were made. This committee format allows for a detailed examination of each clause, ensuring thorough consideration before the bill progresses to subsequent legislative stages.
