Rarieda MP Drafts Bill to Repeal Controversial Tax Law Following Presidential Rejection

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Rarieda Member of Parliament, Dr. Hon. Senior Counsel Otiende Amollo, has introduced a bill aimed at repealing the controversial Finance Bill 2024, following its return to Parliament for deletion by President William Ruto. The new bill seeks to annul each clause of the Finance Bill and, if enacted, repeal each section of the Finance Act 2024.

President Ruto, responding to widespread public dissent, rejected the Finance Bill 2024 and referred it back to the National Assembly with a recommendation for its complete deletion. In his memorandum, the President expressed that he had listened to the concerns of Kenyans and decided to concede to their demands.

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National Assembly Speaker Moses Wetang’ula has communicated the President’s memorandum to MPs and referred it to the Committee on Finance and National Planning. The committee, chaired by Molo MP Kimani Kuria, is expected to table its report when the House reconvenes from a short recess on July 23. The National Assembly will have 21 days from that sitting to consider the committee’s report.

Dr. Otiende Amollo, who is also a constitutional lawyer, has drafted the Finance Act 2024 (Repeal) Bill, which he believes will address the legal ambiguity left by the President’s recommendation to delete the Finance Bill. He argues that immediate repeal upon the bill’s potential enactment aligns more closely with constitutional principles than other proposed alternatives.

β€œI believe that the route of repeal on the same day that the Finance Bill would become law pursuant to Article 115(6), lends itself to reason, logic, and the constitution more than the alternatives proposed,’’ Otiende stated. β€œSuch a route need not wait the expiry of the 14 days but can commence immediately, with attendant shortening of the process, and be passed by the National Assembly at a Special sitting as may be necessary.’’

According to Article 115 of the Constitution, the Finance Bill 2024 would become law on July 9, 2024, being the 14th day since the Speaker submitted it to the President for assent. However, due to the President’s intervention, the bill’s future now hinges on Parliament’s response to his recommendation for deletion.

Dr. Amollo highlights a legal gap regarding the President’s recommendation to delete a bill already passed by Parliament. His proposed repeal bill aims to provide a clear legal pathway to address this unprecedented situation.

The coming weeks will be critical as the National Assembly deliberates on the President’s memorandum and the proposed repeal bill. The outcome will determine the legislative and fiscal direction of the country amid ongoing public scrutiny and debate over the Finance Bill 2024.

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