President Ruto signs Finance Bill 2023 into law

President William Ruto has signed into law, the controversial Finance Bill 2023, which was passed by the National Assembly last week.

The president assented to the Bill on Monday morning which approved tax measures aimed at raising the Sh3. 6 trillion budget that will be seeking to maintain a delicate balancing act between debt servicing and stabilizing the economy.

The Bill sailed through Parliament after a third reading by Kuria Kimani, chairman of the National Assembly Finance and National Planning Committee, and now Kenyans will have to dig deeper into their pockets to fund the government’s first budget.

This will be the first budget for the g Kenya Kwanza administration that has prioritized five pillars under the Bottom-up Economic Transformation Agenda.

There were 87 proposed amendments to the Bill, some of which were approved on Tuesday as the National Assembly debated them late into the night.

Among the most important proposals approved was a 16% value-added tax on gasoline, up from 8%.

Except for Githunguri MP Gathoni Wamuchomba, at least 184 MPs—mostly from Kenya Kwanza—supported the bill, while 88 MPs—mostly from Azimio—opposed the amendment.

The contentious Housing levy, which had initially proposed to be at 3 per cent was also passed after it was amended to 1.5 per cent of gross pay. It had been converted into a tax.

The initial proposal called for the levy to be a savings account that Kenyans could access after seven years.

Digital creators will be subject to a 5% tax. This figure was originally proposed to be 15%.

Betting and insurance withholding taxes will be charged at 12.5% and 16%, respectively.

~WakenyaCanada