The government’s has shelved plans to raise Ksh 346 billion through the Finance Bill 2024 after President William Ruto said his administration would be withdrawing the controversial bill after widespread protests that have left dozens dead and hundreds injured.
- •The government will now embark on engagement with the youth, professional bodies, religion to chat a way forward.
- •The three arms of government, and the County governments, will reduce their budgets as governments look into ways of funding the budget which takes effect next week.
- •Its still unclear what the legal process would be, as the bill already passed parliament and the options for presidential assent do not include an option of withdrawing it.
“It has become evident that members of the public insist on the need for us to make more concessions,” President Ruto said on Tuesday, “I run a government, but I also lead people…Having reflected…and listening keenly to the people of Kenya that they want nothing to do with this Finance Bill, I concede. and the Finance Bill, 2024, is withdrawn.”
The ruling administration toned down the Bill through amendments knocking down proposals worth Ksh200 billion. But even after the amendments, public still took to the streets calling for complete withdrawal of the Bill, a sentiment shared by opposition members of parliament who voted against it.
“…the money we planned to raise from it was to finance critical sectors of the economy such as education, health, agriculture, and improve electricity access in different parts of the country,” noted President William Ruto.
What Happens Next with Finance Bill 2024?
“I decline to assent to the Finance Bill 2024, and refer the Bill for reconsideration by the National Assembly with the recommendation for the deletion of all the clauses thereof,” President Ruto said in a memorandum to the Speaker, shared by Hussein Mohammed, State House Spokesperson, on Wednesday evening.
Parliament went into recess earlier on Tuesday until late July so its unclear whether the Speaker will call a special session and the option of amending it by deleting all clauses exists. Lawyers and public policy experts are still unsure how ‘withdrawing’ a bill that had already passed by a majority vote would work, as legislative rules include an option for the sponsoring member to withdraw it but ideally much earlier in the legislative process.
Ruto said the government would be going into austerity, starting from his office with budget cuts on travel, hospitality, and renovation allocations. He also prepared Parliament, Judiciary, and the county government to be ready to live within their means following the rejection of the Finance Bill 2024.
Other areas includes elevating the war against corruption to curb wastage of public resources through theft.
National sentiment is still evolving as the government’s concessions settle. Whether it’ll be enough to quell protests and widespread discontent, is still unclear at the time of going to press.