NEWS GANG: A recap of the Finance Bill 2024 townhall

Sam

Now, public participation is a constitutional requirement in the making of decisions of governance in Kenya. And the Finance Bill 2024 has generated just as much, if not more heat than the Finance Act 2023, primarily for a shared reason: the extraordinary hiking of tax measures. So on Wednesday night, we brought on board just about every sector that is a direct stakeholder in the outcome of the Finance Bill 2024.

Jamila

Just to give you a recap of the structure of that conversation, we deployed five live television studios. The first studio hosted mwananchi, this is the man on the street and we literally had two of them, one from Bunge La Mwananchi and another from the Bodaboda Association. We had a studio for taxpayers and this was a broad representation of sector leaders from the Kenya Association of Manufacturers, to bankers and to insurers among others. Indeed, that was a town hall. Then we had tax experts to shed light on the dark areas and our two last studios were related: one was for the political opposition and the other for the government.

Linus

First, we sincerely thank all our viewers, listeners and readers across our platforms who not only followed the conversation but also contributed immensely to the discourse on the Finance Bill 2024. In small ways, we got everyone to the same meeting and this could not have happened at a more critical time considering that the National Budget Statement is due for presentation on Thursday next week and the Finance Bill 2024 is actually supposed to be the mechanism that will enable the collection of revenues that would partly fund the budget of 2024/25.

Yvonne

We acknowledge that the public participation is still open. In fact, the Finance and Planning Committee of the National Assembly has scheduled a whole-day public hearing at the KICC on Monday next week. Kenyans have not tried to express themselves on what they think of the tax proposals. We however take issue with some of the sentiments that have been coming from different leaders, especially those in government. The general sentiment is similar to that of a shakedown, a raid of our pockets, a smash and grab. We, the taxpayers should not ask any questions; shut up, pay first, and ask questions later.

"Tax has to be paid for us to be self-reliant. I have gone out of Kenya begging for food, and as a Meru that is not something I’d want myself into. When I go begging in Italy and India for rice and I am told, sorry we cannot give, and I am told sorry go back home…just spare me that shame, give us money. Let us develop the rice scheme in …Bura and other areas. Give us more money to buy fertilizer,," said Agriculture Cabinet Secretary Mithika Linturi.

Sam

While the CS may be right on the essence of self-reliance, it is not so in his language. To demand tax payment to save him from shame due to his ethnic roots comes off as failing to appreciate the reality that Kenyans are in today. This tendency appears to have extended to leaders of parliamentary committees: leaders who even though were appointed into those positions for coming from the majority side or if you like the government side, must remain true to their oath of office, which partly they swore, “I will faithfully and conscientiously discharge the duties of a member of parliament, so help me God.”

"The motor vehicle tax was to give us Ksh.58 billion, if you don’t want to pay, tell us where we are to get the money," MP Kuria Kimani said.

Jamila

In that clip, chairman Kuria Kimani is explaining what ideally should be the work of the National Treasury. What's more, he is clearly taking a position in a public participation exercise that is meant to listen to the people. With that firm stance, one is left to wonder what the exercise is for, if their minds are already made up. There is no denying that indeed there is a need for more resources to finance the ever-expanding needs of the government and the people. But tonight, we ask, at what cost? You see, the stakeholders on our big conversation here on Wednesday night walked the viewers into step-by-step analysis of what some of the tax proposals would mean for the cost of living, cost of doing business and on a bigger scale, the impact on the economy.

Linus

But the discussion also, and maybe inadvertently showcased a shocking, even numbing prospect that those widely assumed to be in the know, may actually not be in the know. From the controversial Finance Act of 2023, the ever-contentious housing levy and now the contested proposals of the Finance Act 2023, it was devastating to witness the number of times the dead end was hit.

Yvonne

You see the Finance Bill 2024 and the Budget 2024/2025 are both products of the government, to be specific, the national treasury, handed over to the parliamentary Committee of Budget and Appropriations and the Finance and Planning Committee. Those three institutions failed to show up to the Big Conversation, despite some of them having confirmed earlier. For whatever reason, their actions on Wednesday night amount to contempt for the people of Kenya.

Sam

Contemptuous because, if the originator of such a serious set of policies and their proponents are not available to answer questions from Kenyans - both ordinary Kenyans and businesses that are busy generating incomes for the government to tax, what moral authority should those government representatives have in taking any action to further those proposals? Yet, if left unchanged, the proposals in the Finance Bill 2024 will have serious ramifications on businesses, livelihoods and lives of many in this country.

Jamila

Yet, here we are. In a week’s time, the budget statement for 2024/2025 will be read. The national treasury through CS Prof Njuguna Ndung’u will justify every expenditure and tax proposal. Shortly after the National Assembly will be called to debate the Finance Bill. And that is where the people’s representatives come in.

Linus

There is a general appreciation that a significant number of members of parliament are not as savvy with the budget and the Finance Bill. Many have been speaking and displaying their shallow understanding at various places. Yet, some have made propositions to either scrap or reduce some of the tax proposals. And that is all good. But it will amount to just talk if those legislators do not table proposals to amend the contentious clauses in the finance bill.

Yvonne

History has taught us that the finance and planning committee, rather than the people, carries immense influence in what eventually gets to the president for assenting. In a few days, they will retreat to write their report. Based on history, the National Treasury may be recalled by the committee to explain the implication of the proposals to amend. Meaning the national treasury ends up with a strong arm in what has been a robust public participation. The treasury will be available to the committee but not to the people as was exhibited by their glaring absence from the big conversation we convened here last night.

Sam

To the member of parliament, you swore to bear true faith and allegiance to the people; and your constituents included. The ball will soon be in your court. What shall you do with it? Will you serve the will of the people? And while at it, will you comprehend in good detail what’s contained in the finance bill, we’d offer links to the big conversation to kick start that journey of awareness.

Jamila

Now, part of the discussion last night also painted an air of general low public faith in the contents of the Finance Bill 2024. A survey whose findings were released earlier today shows that Kenyans overwhelmingly oppose the new tax proposals mostly on the grounds that the collections have between little or no impact on the economy. What members of parliament will do with this information is entirely up to them. The Memo, Kicker, Take and Sense are all wrapped into one and the News Gang is here.

[By Linus Kaikai, Jamila Mohamed, Yvonne Okwara, and Sam Gituku]