Ruto approves the Finance Bill

At State House in Nairobi on Monday morning, according to officials, Ruto approves the Finance Bill and signed it into law.
“The Finance Bill has received the president’s approval,” according to State House Press Secretary Emmanuel Talam. The contentious Bill was approved during a turbulent session that the Opposition largely avoided.
Following its ratification, President Ruto declared that the tax law will let his government to fulfill its promise to Kenyans in its manifesto and reduce its heavy reliance on foreign debt.
The Kenya Kwanza administration’s Ksh3.6 trillion budget for the 2023–24 fiscal year will be funded by an additional Ksh130 billion in taxes, according to the Finance Bill.
According to State House, the president also gave his approval to the Supplementary Appropriations (No. 2) Bill for 2023, which justifies the National Government’s expenditure of an additional Ksh22.9 billion from the Consolidated Fund.
According to the Supplementary Appropriations (No. 1), Act 2023’s revised total national government expenditure, “this results in the reduction of overall expenditure by Ksh25.5 Billion,” according to State House.
The decrease includes a Ksh35 billion rationalization of development spending and a Ksh9.5 billion increase in recurrent.
The government’s efforts to consolidate its finances in light of debt service payments are supported by the reduction in spending.
The Appropriations Bill, 2023 authorizes the National Government to take money out of the Consolidated Fund for its expenses.
One of the main points of contention in the Finance Bill is the housing charge, which was reduced from 3% of gross income to 1.5%.
Employers must pay the government a 1.5% housing levy that was withheld from employees within nine days in order to support the affordable housing program.
Employers must also pay their top-up within the same time frame, within nine days, or else they will be subject to a penalty equal to 2% of the unpaid funds for each month that it goes unpaid.
Kenyans will need to prepare for a high cost of living as a result of the bill’s success, which will result in an increase in the value added tax on petroleum goods from 8% to 16%.
As a result, the price of diesel and super petrol will increase by more than Ksh12. Super gasoline could rise to about Ksh200 per litre as a result.
Bus and commercial vehicle fares are expected to rise, increasing both the cost of production for people who work in logistics and the cost of transportation for commuters.
Following the bill’s ratification, the Energy and Petroleum Regulatory Authority is anticipated to announce higher fuel prices.
A 5% withholding tax will be applied to the money made from the sale of digital content, matching the rate that applies to other professional services.
Anyone who offers “entertainment, social, literal, artistic, educational, or any other material electronically” via websites and social media sites like Facebook, Twitter, or Instagram in collaboration with companies or retailers is referred to under the bill as a content producer.
The William Ruto-led government’s proposal to raise the tax to 15% was criticized by content producers who claimed it would hamper the creative sector.
Following a public rally scheduled for Tuesday in Kamukunji, opposition leader Raila Odinga has pledged to organize massive protests.
Martha Karua and other Azimio leaders welcomed Kenyans to a consultation at the Kamukunji Grounds on Tuesday, 27 June 2023 while speaking at a news conference on Thursday, 22 June 2023.
Once he returns to Kenya, the Azimio Coalition has stated that they are ready to work with the civil society to forward their agenda for the benefit of the suffering Kenyans.
To give discussion a chance through a 14-member bipartisan committee who are unable to come to an agreement on contentious subjects, the Odinga-led coalition had suspended the weekly demonstration.