Wajir South MP demands accountability as Finance Bill 2024 sparks protests in Nairobi

Wajir South Member of Parliament Mohammed Adow has demanded accountability in the contentious Finance Bill 2024, which is set to be tabled on Tuesday.

The Bill has ignited significant opposition from Kenyans, leading to protests in Nairobi’s Central Business District (CBD) against the proposed tax increments.

Expressing his concerns on X on Tuesday, the MP argued that increasing taxes without addressing the root cause of Kenya’s economic woes which is corruption, is the same as treating the symptoms of a disease while ignoring the cure.

“We must demand accountability and transparency from leaders. Increasing taxes without addressing the root cause of Kenya’s economic woes—corruption—is akin to treating the symptoms of a disease while ignoring the cure. Corruption is the cancer eating away at our nation's resources. Unless we confront it head-on, any additional revenue generated through higher taxes will be siphoned off into the pockets of the corrupt,” Mohammed said.

He has rooted for the recovery of stolen funds, noting that those responsible should be held accountable.

“We must insist on stringent measures to recover stolen funds and hold those responsible to account. This is not just about punishing wrongdoers; it is about reclaiming what rightfully belongs to the people of Kenya. Every shilling recovered from corrupt activities is a shilling that can be used to build a better future for our children and grandchildren,” he said.

He highlighted the detrimental impact of corruption on public funds that should be directed towards essential services to improve the quality of life for all Kenyans

“Billions of shillings are lost every year through fraudulent deals, mismanagement of public funds, and outright theft. These are funds that should be invested in healthcare, education, infrastructure, and social services, investments that would directly improve the quality of life for all Kenyans. Instead, this money is diverted to benefit a select few, leaving the majority to bear the brunt of increased taxes and reduced public services,” he said.

Following the opposition, the National Assembly Finance and National Planning Committee has seen dropped some controversial proposals from the Finance Bill 2024 following public participation that ended last Monday. Among the proposed tax increments causing uproar were the Motor Vehicle Tax, 16 per cent VAT on bread, e-TIMs, and the Digital Money Transfer Tax.

The committee has now recommended the deletion of the 2.5 per cent proposed Motor Vehicle Tax, saying the tax is discriminatory and non-progressive.

“The proposal to cap the levy at one hundred thousand shillings makes the tax unfair and it will have adverse effects on the insurance-taking behaviour of motor vehicle owners and further lead to negative effects on the insurance sector. Commercial vehicles are subject to advance tax and therefore imposing this tax will amount to double taxation. From the foregoing, the Committee recommends the deletion of the proposed Motor vehicle tax,” the committee said.

They have also repealed the 16 per cent VAT on bread, saying that if the tax is imposed, it will make the basic commodity less affordable beyond the affordability of many Kenyans.

The Committee has also proposed exempting several products from VAT, including the issuing of credit and debit cards, foreign exchange transactions, sanitary towels and diapers and services of local film agents.

𝗙𝗜𝗡𝗔𝗡𝗖𝗘 𝗕𝗜𝗟𝗟 𝗔𝗠𝗘𝗡𝗗𝗠𝗘𝗡𝗧𝗦

Kenya Kwanza Parliamentary Group met at State House Nairobi on Tuesday.

MPs and Senators were taken through the changes made to the Finance Bill 2024 by Finance Committee Chairman Kimani Kuria.

Speaking at the meeting, President… pic.twitter.com/k3QjXho59c

— State House Kenya (@StateHouseKenya) June 18, 2024