President William Ruto has revealed that the National Treasury is exploring alternative revenue sources following the suspension of the Finance Bill 2024.
Speaking at a Town Hall meeting in Kisumu, Ruto acknowledged the challenging financial situation caused by the bill’s withdrawal.
“The suspension of the Finance Bill resulted in a loss of approximately KES 340 billion in potential revenue,” Ruto stated. “However, we are in discussions with our partners and remain optimistic about finding solutions.”
The President mentioned that he has received proposals from the National Treasury on how to finance his administration’s initiatives.
These proposals will likely involve engaging parliament to draft new legislation based on Treasury recommendations.
This development comes after Ruto’s historic decision on June 25 to withdraw the Finance Bill 2024 in response to widespread protests.
As a result, the Kshs 3.9 trillion budget will now be managed using the current Finance Act, supplemented by external and internal borrowing to address the budget deficit.
In a related move, Treasury Cabinet Secretary John Mbadi recently announced plans to reintroduce key provisions from the suspended Finance Bill through a new Tax Procedures (Amendment) Bill, 2024.
Published in the Kenya Gazette Supplement No. 165, this bill aims to reinstate some of the previously contentious measures.
The proposed legislation includes several amendments to the Tax Procedures Act, focusing on improving tax collection and administration methods.
These changes are expected to help the government recover some of the revenue lost due to the Finance Bill’s suspension.
As the government seeks to navigate these financial challenges, all eyes will be on the National Treasury and Parliament to see how they balance the need for increased revenue with public concerns over taxation.
