Kenyans have expressed mixed reactions after Treasury Cabinet Secretary John Mbadi promised to re-introduce clauses from the rejected Finance Bill 2024.
Speaking during the handover ceremony from his predecessor Njuguna Ndung’u, Mbadi emphasised that for the country’s economic concerns to be addressed, some clauses must be implemented considering concerns of kenyans.
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“Yes, we have lost the Finance Bill of 2024. It will be wrong and an abuse to the people of Kenya if you tell them that you are reintroducing that bill. We cannot reintroduce it despite the progressive provisions in it. But the country must grow. There are provisions that were in the bill that would help the country to grow.”
The CS, who was nominated as part of the broad based government has also highlighted the prevalence of fictitious tax refund claims, which have placed a strain on the country’s revenue collection efforts.
“A lot of tax refund claims are fictitious, and we know it, so we must look for ways of reducing tax expenditure. There are commodities and items you may not stop subsidizing because they are basic, they impact the cost of living, but you can move them to exemption so that you do away with zero rating of commodities.”
Mbadi’s strategy involves segmenting the Finance Bill’s original proposals and reintroducing them as standalone amendments rather than a single comprehensive bill.
“Our team is already working on some of the proposals that were in the Finance Bill 2024 which we can now put together and see how to take them back to Parliament not as Finance Bill but as other proposals.”
To ensure these amendments resonate with the public, Mbadi promised extensive public participation, a critical component that was seen as lacking in the initial process.
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“Kenyans, we must discuss and agree that yes, we will give some relief on some important items but let us do tax exemption instead of zero rating, which ends up benefiting business people and not the consumer.”