Voting under duress? Questions as MPs who voted for tax law now oppose it

Kandara MP Chege Njuguna and Gatanga MP Edward Muriiu, who voted for the Act, teamed up on February 26, 2024, with local farmers to stop an awareness campaign by Kenya Revenue Authority (KRA) officials who had turned up to sensitise farmers on a requirement that businesses should electronically generate and transmit their invoices to KRA through eTIMS.

KRA on Monday further announced that all businesses, including those in the Informal Sector and Small Businesses, must electronically generate and transmit their invoices via the electronic Tax Invoice Management System (eTIMS). 

The eTIMS Lite platform enables non-VAT registered taxpayers to electronically generate and transmit their invoices to KRA through an easy-to-use interface.

MP Njuguna addressed the gathering saying: "We are telling the government, we are not going to pay those avocado taxes. What the government needs to do is subsidize the avocado, which means helping the farmers not killing them. We refuse our farmers to be killed. Hiyo maneno tumekataa kabisa."

However, Section 23A of the Finance Act, 2023 outlines that "The Commissioner may establish an electronic system through which electronic tax invoices may be issued and records of stocks kept for the purposes of this Act."

It further reads..." a person who carries on business shall issue an electronic tax invoice through the system established under subsection (1)."

The contested move by KRA therefore raised questions on whether MPs had carefully perused through the Act before unanimously voting for it, if at all they would later contest it.

The double speak was also seen with Deputy President Rigathi Gachagua who during a past public address said that the provisions in the act that affect farmers are under review.

"Even on this taxation, there is a bill in parliament we have seen it has some defects as it seeks macadamia farmers to start being deducted. I have sat down with the President and the Treasury CS we are looking for a better solution," said Gachagua. 

"We will talk to our MPs because we cannot help a farmer with one hand and hurt them with another."

All this stemmed from pronouncements made by President William Ruto during a thanksgiving prayer service in Narok County on June 4, 2023.

In the convocation, President Ruto warned MPs in the Kenya Kwanza government against opposing the bill when it is tabled before the House.

He told the MPs to ensure that the Bill sails through.

“We need to pass this bill so Kenya can develop. There are some suggestions that MPs should disclose how they voted when the bill is tabled in parliament, but personally, I am waiting to see any MP who will shut down that bill,” said the president.

A week later Ruto's request was accomplished as at least 184 MPs—mostly from Kenya Kwanza—supported the bill, while 88 MPs—mostly from Azimio—opposed the amendment.

Githunguri MP Gathoni Wamuchomba is one of the Kenya Kwanza MPs who did not vote in the bill's favour.

Threats started to play out as MPs allied to the ruling party, the United Democratic Alliance (UDA), who opposed Ruto’s directives were at risk of being subjected to disciplinary action.

Nandi Senator Samson Cherargei warned that anyone who went against the ruling political outfit’s position would be dealt with accordingly.

“If the party has directed you make a certain decision, if you don’t follow party position…if you were elected by UDA party supporters, you are in UDA party and do not want to vote according to UDA, you will have to be dealt with in accordance with the law,” he stated.

President Ruto assented the Bill into law on June 26 and has since seen Kenyans digging deeper into their pockets to fund the government's first unsavory budget.