What’s Next for Finance Bill 2024 Amid Heavy Public Resistance?
What’s Next for Finance Bill 2024 Amid Heavy Public Resistance?
What’s Next for Finance Bill 2024 Amid Heavy Public Resistance?
President William Ruto has seven working days to guarantee that the Finance Bill 2024 is passed and signed by the Kenya Kwanza administration.
The Bill is significant because it establishes the budgetary parameters for the forthcoming Fiscal Year 2024–2025, which will start on July 1.
Historically, the Finance Bill was passed ninety days following the passage of the Appropriations Bill, with a deadline of June 30. The Public Finance Management (PFM) Act has undergone revisions that have tightened this timeline, requiring the Bill to be enacted by June 30 and operationalized by July 1 in order for the Kenya Revenue Authority (KRA) to start tax collecting on time each fiscal year.
There are a few procedural obstacles that the Bill must clear before it becomes law.
The National Assembly was officially presented with the Bill, which had its origins in the National Treasury, together with the yearly national government estimates. According to PFM Act Section 37(2)(c), this procedure prepares the ground for parliamentary discussion and examination.
The Bill then proceeded to the Finance and National Planning Committee of the House, chaired by Molo MP Kimani Kuria, which conducted public hearings.
Following deliberations, the Committee submitted its report on Tuesday, June 18, outlining its recommendations and potential amendments.
MPs are now poised to debate the Bill based on the Committee’s report, and are expected to vote on the Bill on Thursday, June 20.
This stage allows for clause-by-clause scrutiny and the introduction of further amendments if deemed necessary. The outcome of this debate hinges on a parliamentary vote following the second reading, where MPs will decide whether to adopt the Bill as proposed or to propose amendments.
The Bill is expected to succeed since Kenya Kwanza has a majority in Parliament and has already handled many of the controversial concerns it contains. Questions concerning the final form of the legislation are raised by the lack of clarity surrounding the details of any modifications that were presented throughout the debate.
Following parliamentary approval, President Ruto will sign the bill. The President has 14 days to either sign the Bill into law or return it to Parliament with reservations so that it can be reconsidered, in accordance with Article 115 of the Constitution.
Parliament, on its part, has the authority to either approve the Bill with a two-thirds majority vote or revise it to address the President’s concerns.
The Finance Bill 2023 was signed by President Ruto on June 26 of last year, highlighting the significance of prompt legislative procedures in financial governance.
With June 30 rapidly approaching, all eyes are on Parliament and the Executive to make sure that the Finance Bill 2024 is passed into law without a hitch, which will establish Kenya’s fiscal policies for the upcoming year.
This legislation has broad ramifications that impact everything from public spending priorities to revenue collection.
