Ruto's Tax Bill Reversal Leaves Allies Scrambling

27, Jun 2024 / 4 min read/ By Livenow Africa

Kenya Kwanza MPs who vigorously supported the Finance Bill, 2024 are reeling from adverse image shocks after President William Ruto made a U-turn on the contentious tax measures.

Even as the President’s troops suffered confidence concerns, some of his former allies turned critics over the push for the controversial Finance Bill, 2024 were vindicated, boosting their political credits.

The MPs joined President Ruto on Wednesday at State House for deliberations before a briefing in which they sat behind him, applauding as he announced the withdrawal of the Bill.

Ironically, the Kenya Kwanza troops had vehemently opposed amendments from the minority side in the lead-up to the passing of the contentious Bill, sticking to their concessions guided by the President. The alleged grandstanding forced Azimio MPs to drop all their proposed amendments during the committee stage, calling for total rejection of the Bill.

In the Second Reading, pro-government MPs voted 204 to 115 to push the Bill through, while in the Third Reading, they voted 195 to 106. Kitui Central MP Makali Mulu, who voted No for the Bill, admitted that the Yes troops were shocked at the turn of events after days of demonizing their colleagues.

“It must have been messy for those MPs to sit behind President Ruto clapping as he withdrew the Finance Bill 2024. Very sad that they were clapping and smiling,’’ Mulu said.

Most of the MPs had taunted their opponents and vowed to railroad the Bill through parliament despite growing public disaffection and opposition from their Azimio counterparts. National Assembly Majority Leader Kimani Ichung’wah, Chief Whip Sylvanus Osoro, Budget and Appropriations Committee Chairperson Ndindi Nyoro, and Finance and Planning Committee Chairperson Kimani Kuria were among the Kenya Kwanza bigwigs who aggressively backed the Bill.

Some Kenya Kwanza MPs found it difficult to hold public events in their constituencies as constituents bayed for their blood for supporting the Finance Bill. Their opponents might use their Finance Bill predicament to fight them politically ahead of the 2027 polls.

Saboti MP Caleb Amisi said the Kenya Kwanza MPs who supported the bill risk losing their seats in the 2027 polls for failing the public confidence test. “UDA MPs are Ruto supporters. Members in those constituencies look for new members. The guys voted yes to what? When Ruto rejects they clap. What nonsense is this in the name of colleagues?’’ the MP posted on his X account.

Amisi claimed that he had warned his colleagues, including those in Kenya Kwanza, that the Bill was unpopular and would not see the light of day. "I warned my colleagues! I have been a prophet of some sort. I will continue sharing wisdom until Ruto goes home. Kenya needs a renaissance!’’ he added.

Former Law Society of Kenya President Nelson Havi said the MPs who voted Yes for the Bill should be recalled by their electorate, saying the President heard the cry of the people and acted. “President William Ruto has heard and acted as demanded by the People, a confirmation that he is not the problem. Where then is the problem? It is in the members of the National Assembly who voted yes. Kenyans should commence their immediate recall. Let us have a by-election,’’ he said on his X account.

On Thursday, former presidential running mate hopeful Willis Otieno said the MPs had suffered adverse credibility and image bruises after Ruto shepherded the withdrawal of the Bill. “They had staged a civilian coup on Kenyans. You saw those MPs who supported the Bill clapping when the president said he would withdraw the Bill," Otieno said.

As politicians tore into MPs who supported the Bill, attacks were also directed at the President’s advisers, with some people calling for their dismissal. Some of the advisers, including Economic Adviser David Ndii, had rooted for the Finance Bill and labeled protesting youths “cool kids” whose parents plundered the country. “People with issues with Finance Bill, sit down, write an alternative budget that cushions external shocks without IMF, brings down the deficit with no tax measures. And do the numbers,” Ndii stated.

On Wednesday night, Public Service Cabinet Secretary Moses Kuria lifted the lid on the behind-the-scenes intrigues that mired the Finance Bill, 2024. The CS alleged that the formulation of the Bill was messed by an initial meeting chaired by Deputy President Rigathi Gachagua, which endorsed taxes on basic items. “The Committee meeting that endorsed the original Finance Bill, which included VAT for milk and bread, was chaired by the Deputy President,’’ Kuria wrote on his X account.

The Deputy President had claimed that the Finance Bill-making process was not consultative across the government as it should be, hinting that he was not involved. Some of the Kenya Kwanza MPs found themselves in an even tougher political situation after the President made a U-turn and announced the withdrawal of the bill. Previously, the legislators had been attacked, booed, and jeered in forums, with some whisked away from the public that bayed for their blood.

Tags