Moses Wentangula explains implications of rejecting Finance Bill 2024, if it'll become law upon lapse of 14 days

Moses Wentangula explains implications of rejecting Finance Bill 2024, if it'll become law upon lapse of 14 days

• President William Ruto declined to sign the contentious Finance Bill 2024, referring it back to the National Assembly for amendments
• Ruto issued a memorandum recommending the deletion of all 69 clauses in the Bill, citing the will of Kenyans
• National Assembly Speaker Moses Wetangula noted that any member of can revive the 69 clauses if they marshal the votes of at least two-thirds of the house

TUKO.co.ke journalist Wycliffe Musalia brings over five years of experience in financial, business, and technology reporting, offering deep insights into Kenyan and global economic trends.

National Assembly Speaker Moses Wetangula has dismissed projections that the Finance Bill 2024 will become law.

President William Ruto declined to sign the controversial Bill into law on Wednesday, June 26, referring it back to Members of Parliament.

When does a Bill become law?

According to Kenyan law, a Bill becomes law if the president assents to it within 14 days of the National Assembly approving it.

If the president fails to assent to it within 14 days, it will automatically become law.

The president can also refer it back to parliament with recommendations for amendment within the stipulated time

What Wetangula said about Ruto's recommendations

Wentagula assured Kenyans that the Finance Bill 2024 will not become law through a lapse of the 14-day period after MPs took a recess until July 23, 2024.

"Having been referred back to the National Assembly for reconsideration on account of the President’s reservations, the Finance Bill, 2024 cannot become law through a mere lapse of time," said Wetangula.

The speaker referred the memorandum to the Departmental Committee on Finance and National Planning led by Molo MP Kimani Kuria for consideration.

He also notified MPs and the public about Ruto's memorandum, which recommended deleting all 69 clauses in the Bill to reflect the voice of Kenyans who rejected it in its entirety.

"The Committee is expected to expeditiously commence consideration of the Presidential Memorandum, its reservations and recommendations, and report to the House at the next regular sitting upon its resumption," he said.

Wetangula affirmed that MPs shall take Ruto's justification into account in their deliberations.

He explained that the entire Bill would be lost upon the National Assembly's approval of the President’s reservations and recommendations.

However, Wetangula noted that should any member want to revive the 69 clauses he or she will need to marshal the votes of at least two-thirds of the house.

"Any Member intending to negate the President’s reservations/veto or revive any of the sixty-nine (69) Clauses of the Bill is required to marshal the votes of at least two-thirds of the Members of the National Assembly, being 233 Members," said Wetangula.

What next after entire Finance Bill is rejected?

Wetangula noted that rejecting the entire Finance Bill2024 shall occasion a financing gap of approximately KSh 300 billion.

He recommended that the financing gap be bridged by a reduction of approved expenditures.

In an exclusive interview with TUKO.co.ke, tax expert Kemboi Rotuk explained that the National Treasury will be forced to operate with revenue-raising measures in the Finance Bill 2023, resort to budget cuts and seek alternative sources of funds.

"Treasury is forced to fall back to the Finance Act 2023. The government will now have to resort to budget cuts and austerity to match the reduced revenue projections.

"They could also seek new ways to increase compliance and aggressive collection, which may enable them to collect more, but that can only be so much compared to the easy low-lying fruits of adjusting rates and taxing at source," said Rotuk.

Rutuk said the government will have no option but to opt for additional levies permitted in law, increase service fees or seek additional loan facilities to match the shortfall.

What are Ruto's austerity measures?

The head of state said he listened to Kenyans' voices and took the bold step of declining the contentious Finance Bill 2024.

Ruto directed various austerity measures to be undertaken by his administration to cut the budget.

He said the measures will help reduce government expenditure, starting with the Office of the President.