Treasury PS Kiptoo says Gov’t seeking to raise Ksh.346B with Finance Bill 2024

National Treasury Principal Secretary Chris Kiptoo has defended proposed tax measures contained in the contentious Finance Bill, 2024 saying the legislation aims to raise Ksh.346.7 billion.

Kiptoo, who presented his views before the National Assembly’s Finance and Planning Committee on Tuesday, stated that the new tax measures were informed by Kenya's burgeoning  public debt that he insists must be reduced.

"We have no room to take more debt, this is what is informing Finance Bill 2024. We have a 3-year internal mechanism which we can achieve by only increasing domestic revenue and cutting expenditure," Kiptoo said.

Some members of the committee however rejected various proposals in the Bill saying they will increase the financial burden on Kenyans.

"You need to balance because Kenyans are also burdened by increased taxation," the committee Chair Kuria Kimani said.

Other government agencies and departments likewise submitted their views before the committee, justifying new tax proposals in the Bill.

"We have increased road maintenance levy by Ksh.7 to expand road maintenance and construction," Transport CS Kipchumba Murkomen said.  

"We are just adding 5 dollars tax on baby diapers," National Environment Management Authority (NEMA) Director General Boru Mamo said.

"How dare you say the tax is only 5 dollars on basic products such as baby diapers? Do you think an ordinary citizen can afford Ksh.650 like you? We reject this proposal," Kigumo MP Joseph Munyoro countered.

With the official closure of the public participation exercise on the controversial Bill, the committee will now retreat to compile its report before tabling it next week.