Kenya: Ruto signs controversial Finance Bill 2023 into law

Author: Chany Ninrew | Published: Monday, June 26, 2023

President William Ruto assents to a bill at State House on June 26, 2023 Image: | Photo: The Star

Kenya’s President William Ruto on Monday assented into law, a controversial Finance Bill 2023 which raises taxation, amid an outcry over the high cost of living gripping the country.

According to Citizen Television, the president assented to the Bill on Monday at State House, Nairobi, after it was passed by the parliament.

Ruto’s Kenya Kwanza Coalition rallied behind the bill to aid its passing in the third reading on June 20.

After it sailed through the only stumbling block – the legislature, it is now a law and Kenyans have to pay heavy tax to fund the national budget.

– What’s in the Bill –

The controversial bill contained some 87 proposed amendments – some of which were scrapped out before its passing on Tuesday.

The fundamental changes include the Housing Levy, which was slashed to 1.5 per cent from the initial 3 per cent and amended to become a tax.

Similarly, the fuel tax was increased from 8 to 16 per cent. This takes effect on July 1, 2023.

Digital creators will be subject to a 5% tax. This figure was originally proposed to be 15%.

Betting and insurance withholding taxes will be charged at 12.5% and 16%, respectively.

The bill was passed by a vote of 184 MPs mainly from Ruto’s party in support, and at least 88 MPs from Azimio opposing it.

– Looming protests –

Opposition leader Raila Odinga is expected to return to Kenya on Tuesday to join his Azimio Coalition for a political rally after the collapse of bipartisan talks with the Ruto administration.

An insider told Nation newspaper, Odinga will have a rally at Kamukunji grounds – in what could mark the resumption of ant-government protests over the passing of the bill, high cost of living and the failed negotiations.

President Ruto said previously he has no problem with opposition protests but warned, the government will not allow violent protests and destruction of properties.

“I have no problem with Raila Odinga. I have no problem with him organizing protests. There are protests here in Paris, but I have asked Raila and the company not to engage in violence and destruction of properties,” Ruto said to France 24 while in a visit to Paris.

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