The Kenya Kwanza government is racing against time with just seven working days to secure the passage and signing of the Finance Bill 2024 by President William Ruto.
This Bill is pivotal as it establishes the financial framework for the Fiscal Year 2024/2025, starting on July 1.
Traditionally, the Finance Bill was enacted 90 days post the Appropriations Bill, aligning with a June 30 deadline. However, recent amendments to the Public Finance Management (PFM) Act have tightened this timeline, requiring the Bill's enactment by June 30 and its operationalization by July 1. This change ensures the Kenya Revenue Authority (KRA) can begin tax collection promptly each fiscal year.
Before becoming law, the Bill must clear several procedural hurdles.
Originating from the National Treasury, the Bill was formally presented to the National Assembly alongside the annual national government estimates. This step, in line with Section 37(2)(c) of the PFM Act, initiates parliamentary debate and scrutiny.
The Bill then moved to the Finance and National Planning Committee, chaired by Molo MP Kimani Kuria, which conducted public hearings.
Following extensive deliberations, the Committee submitted its report on Tuesday, June 18, outlining its recommendations and potential amendments.
MPs are now set to debate the Bill based on the Committee's report, with a vote expected on Thursday, June 20.
This phase allows for detailed scrutiny and potential introduction of further amendments. The outcome hinges on a parliamentary vote following the second reading, where MPs will decide whether to adopt the Bill as proposed or to suggest amendments.
With Kenya Kwanza holding a majority in Parliament and having addressed many contentious issues within the Bill, its passage seems likely. However, the specifics of any amendments proposed during the debate remain uncertain, raising questions about the final form of the legislation.
Once approved by Parliament, the Bill will proceed to President Ruto for assent. According to Article 115 of the Constitution, the President must either sign the Bill into law within 14 days or return it to Parliament with reservations for reconsideration.
Parliament may choose to amend the Bill to accommodate the President's reservations or pass it unchanged with a two-thirds majority vote.
If the President neither signs nor returns the Bill within the stipulated timeframe, it automatically becomes law on the 14th day from its transmission to the President for assent.
Last year, President Ruto signed the Finance Bill 2023 on June 26, highlighting the importance of timely legislative processes in financial governance.
As the deadline approaches, all eyes are on Parliament and the Executive to ensure the smooth enactment of the Finance Bill 2024, setting the stage for Kenya's fiscal policies in the coming year.
The implications of this legislation are extensive, impacting everything from revenue collection to public spending priorities.