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National Dialogue Committee fails to agree on scrapping of housing levy, reduction of fuel VAT

The National Dialogue Committee (NADCO) co-chairs Kalonzo Musyoka of the Azimio Coalition and Kimani Ichung'wah of the Kenya Kwanza Coalition during the unveiling of the report on 25 November 2023. (Photo: X/Kimani Ichung'wah)

By Dennis Tarus | Sunday, November 26, 2023

The committee said there was divergent opinion regarding the Housing Levy and VAT on fuel which were effected under the Finance Act 2023

The National Dialogue Committee (NADCO) on Saturday failed to reach a consensus on the scrapping of the Housing Levy and reversing the standard rating of VAT on fuel from 16 per cent to eight per cent.

While unveiling the final report of its deliberations, the committee said there was divergent opinion regarding the two issues which were effected under the Finance Act 2023 and that the matters would be referred to the leadership of the two Kenya Kwanza and Azimio for further consideration.

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However, under the contentious matter of the cost of living, the committee agreed that all arms of government shall reduce their travel budgets by 50 per cent and that the Salaries and Remuneration Commission (SRC) review Daily Subsistence Allowances for state and public officers with a view of reducing by 30 per cent.

NADCO also recommended the Ministry of Energy and Petroleum in liaison with the National Treasury to reduce the road maintenance levy and the anti-adulteration levy by Sh5 and Sh3 respectively.

The committee recommended the national government finalise the transfer of all devolved functions to the county governments.

It also recommended the amendment of the Constitution to provide for the equitable share to county governments not to be less than 20 per cent of all revenue collected by the national government from the current 15 per cent.

The report was signed by NADCO co-chairs Kalonzo Musyoka of the Azimio Coalition and Kimani Ichung'wah of the Kenya Kwanza Coalition.

ODM leader Raila Odinga had warned that he would not append his signature on the report if the committee fails to address the cost of living as demanded by Azimio.