Tax proposals have elicited deeply-entrenched opinions
The National Assembly witnessed a fiery debate as Members of Parliament engaged in a heated discussion over the much-debated Finance Bill, 2023. With a proposed 1.5% housing levy at the forefront, emotions ran high as legislators expressed their divergent views on the matter.
Supporters of the Bill, mainly from the ruling Kenya Kwanza Coalition, drummed up support for the Bill, terming it a reflection of the country’s aspirations.
Molo MP Kuria Kimani, a member of the Finance Committee, staunchly defended the bill saying the revised version reflected the wishes of Kenyans following spirited public debate. He gave the example of the housing levy, which has been reduced from 3% to 1.5% to accommodate public views. Kimani also lauded the government’s efforts to promote the manufacturing of electric vehicles, noting the government had incentivized manufacturers to facilitate the growth of this sector.
Nyali MP Mohammed Ali, while defending the bill, accused opposing MPs of selfishness and political opportunism. “Today you oppose this bill because you want popularity politics.” He praised the Bill as attracting foreign investors by reducing non-resident tax, which he believed would contribute to the development of counties with limited foreign investments.
Buuri MP Rindikiri Mugambi, who is also vice-chair of the housing committee, expressed his support for the bill, highlighting its positive impact on addressing housing issues in slum areas. Mugambi commended the clause addressing the urgent need for housing in slum areas across major cities in Kenya, and urged critics to consider the value of improved sanitation, a clean environment, and adequate housing for all citizens.
The Bill’s critics, on the other hand maintain the Bill is not representative of Kenyans’ wishes. Migori Woman Representative, Zainab Mohamed said those supporting the Bill were not being sincere but opportunistic. She accused the Finance Committee of dishonesty and asserted that the majority of Kenyans were against any form of housing levy and unaware of the proposed reduction. She instead called on the government to focus on addressing immediate needs such as food security rather than burdening citizens with additional levies.
“Kenyans do not want it, they’re not interested. They’re not aware of your 1.5%.”
Leader of the Minority and Ugunja MP, Opiyo Wandayi, delivered a passionate speech that warned of the Bill’s potentially devastating consequences if passed as it is. Wandayi, described it as insensitive and accused the government of neglecting the people it was meant to protect.
Wandayi cautioned that the bill had the potential to incite a revolutionary response from the public. He highlighted the political pressure placed on members of parliament, calling attention to the threats made by the head of the ruling party towards dissenting voices.
“This is the first time we’ve come across a bill proposed by the regime in power… a bill that is totally insensitive to the plight of people,” he opined.