Members of the National Assembly approves the second reading of the controversial Finance Bill 2024 despite widespread public outcry, setting the stage for intense parliamentary debates in the days leading up to the June 30 deadline.
A total of 204 MPs voted in favour of progressing the Bill, 115 voted against it, and abstentions were zero.
MPs voted by acclamation as opposed to secret ballot.
The vote came upon the conclusion of debate clause by clause based on the report by the Finance Committee.
The legislative maneuver, however, does not confer immediate legal status upon the bill. The bill still has two more stages before before becoming law.
The Bill now proceeds to the Committee of the whole House which is composed of the entire membership of the Assembly where proposed amendments will undergo rigorous evaluation.
“Members, the matter of the Finance Bill are now over, we wait for the committe of the whole, those who have amendments to file, clerk and his team will process those amendments,” Speaker Wetangu’la said.
MPs had until 1pm Thursday to submit their proposed amendments.
If approved by the House committee, the Bill will move to the final stage for Third reading after which MPs will take a vote.
This final phase has been scheduled for Tuesday, June 25.
No further substantive amendments will be taken up at this stage.
“As you have been told, the House will sit on Tuesday morning when we will proceed on the same matter. Open the bar, open the doors, now call out the next order,” Wetang’ula ruled.
Divisions have crystallised along coalition lines, with the Azimio la Umoja One Kenya Coalition vehemently opposing the Bill while the Kenya Kwanza Coalition remains supportive.
Among the amendments unveiled are adjustments to excise duties on mobile money transfers, reducing them from 20 per cent to 15 per cent, and the elimination of 16 per cent VAT on financial services and foreign exchange transactions, aimed at easing financial burdens on consumers.
In a move to protect local industries, the committee has recommended imposing excise duties on imported onions and potatoes while removing such levies on imported eggs.
Notably, the committee has also scrapped the 16 per cent VAT on bread, although the categorisation of bread under tax schedules remains unresolved
