Nandi senator, Samson Cherargei, on Tuesday, May 9, weighed in on the controversial Finance Bill 2023, claiming that it will be passed in Parliament without any amendments.
On Thursday, May 4, the National Treasury tabled the Finance Bill 2023 in the National Assembly, sparking uproar with proposals to increase taxes.
“On the Finance Bill 2023, the decision to pass by Parliament is not optional where even coma shall not be amended be because we either borrow more or raise our revenue through taxation.
“The serious public debt of Ksh10 trillion was put by the Handshake government of Uhuru and Tinga (Raila Odinga) that Kenyans are paying heavily now. Tinga did not raise an objection in the handshake government, yet he was senior advisor to Uhuru. This hypocrisy should stop,” noted Cherargei.
He also blamed former President Uhuru Kenyatta and former Prime Minister Raila Odinga for increasing Kenya's debt.
"No new taxes are being introduced in the country,” he claimed, arguing that taxes were revised.
Kericho Senator Aaron Cheruiyot, who doubles up as the majority leader in the Senate, concurred with Senator Cherargei.
“Any conversation on taxes without an accurate referral to the debt strain Kenya is facing is idle talk that should be ignored.
“Whether from the opposition or the media, what the country needs is a dose of reality on how steep the climb is, not cheap brownie points,” added Cheruiyot.
Cherargei and Cheruiyot are staunch supporters of President William Ruto and the Kenya Kwanza administration. Both were elected through Ruto's party, the United Democratic Alliance (UDA).
One of the controversial items in the proposed bill is increasing the tax on fuel from 8 per cent to 16 per cent.
Additionally, the bill proposes a 3 per cent deduction of basic salaries to go towards the National Housing Development Fund. Employers will have to match their employees’ deduction with another 3 per cent.
Furthermore, it proposes a 5 per cent excise tax on more products than previous budgets. Additional items set to be taxed included fake beards, eyebrows, eyelashes, and wigs.
On May 7, David Ndii, the President's Council of Economic Advisors (CEA) chairperson, told off critics of the Finance Bill 2023, urging them to craft better alternatives.
“People with issues with Finance Bill, sit down, write an alternative budget that cushions external shocks without IMF (International Monetary Fund), brings down the deficit with no tax measures. And do the numbers,” Ndii stated.
