The National Assembly’s Finance Committee Chaired by Molo MP Kimani Kuria has embarked on a nationwide exercise to collect public views on four proposed tax bills. The initiative, which commenced on November 18, 2024, represents a significant step in Kenya’s legislative process for implementing new tax measures.
The national treasury building in Nairobi: photo courtesy
The delegations are visiting six counties over two days to gather citizens’ opinions. This fresh round of public participation follows the earlier rejection of Finance Bill 2024, with focus now shifted to less controversial tax
Courtesy Photo of Finance Committee Members led by chairperson, Molo MP Kimani Kuria
The committee is reviewing four critical bills: the Tax Laws (Amendment) Bill 2024, Tax Procedures (Amendment) Bill 2024, and two Public Finance Management (Amendment) Bills 2024. A notable proposal includes introducing a 15 per cent tax on digital marketplace giants, aimed at expanding Kenya’s tax base to encompass all online businesses operating within the country.
The public participation schedule spans multiple counties, with initial sessions taking place in Isiolo at Bishop Menza Pastoral Centre and Bungoma at Kenya Red Cross hall. The committee will proceed to Mombasa’s Tononoka hall and Siaya’s IEBC hall on Tuesday, concluding with sessions in Taita Taveta at Mwatate CDF hall and Kericho at ACK Church on Wednesday.
Citizens have expressed mixed reactions to the proposed measures. In Isiolo, resident Abdikadir Khalifa voiced support for the majority of proposals, stating that “99 per cent of the proposals were acceptable.” However, fellow resident Abdirahman Abdalla raised concerns about the tax burden, highlighting frustrations about tax payment without visible service delivery improvements.
The Tax Procedures (Amendment) Bill 2024 proposes extending the tax amnesty period to June 2025 and allows taxpayers to offset overpayments against tax obligations. Treasury’s redefinition of the digital marketplace specifically targets tech giants, while also aiming to provide additional tax relief for employee benefits.
Opposition leaders have expressed resistance to the proposals. Wiper party leader Kalonzo Musyoka has cautioned that the new measures could trigger unrest, while National Assembly Minority Leader Robert Mbui has pledged to oppose any attempts to reintroduce controversial tax measures through alternative channels.
The Treasury maintains these tax measures are crucial for ensuring smooth county funding, effective public debt management, and meeting government revenue targets. The proposals aim to raise Ksh.178 billion for this year’s budget financing.
Significant amendments to the Public Finance Management Act seek to ensure continued county funding, even when Division of Revenue and County Allocation bills face delays. The public participation period extends until May 28, 2024, with all sessions beginning at 10 am and open to all citizens.
Committee Chairman Kuria has provided assurance that public views will significantly influence the final bills, promising to eliminate proposals that face substantial public opposition. These new proposals follow the withdrawal of the controversial Finance Bill 2024, which had triggered nationwide protests.
After gathering public views, the committee will prepare a comprehensive report to guide parliamentary debate on the proposed legislation. The government hopes these revised proposals will receive better public acceptance than previous attempts at tax reform.
The amendments particularly emphasise ensuring smooth county operations, aiming to prevent funding delays that could affect service delivery at the county level. The success of these bills hinges largely on public reception and parliamentary support, as the government seeks to balance its revenue needs with public concerns about increasing tax burden.