Opposition MP seeks to seal loophole in Ruto's withdrawal of Finance Bill

Opposition lawmaker Otiende Amollo has drafted a bill to repeal the contentious draft tax laws that President William Ruto has withdrawn following deadly youth-led protests.

The move by the lawyer and Rarieda lawmaker is aimed at blocking the proposals from becoming law, his argument being that Ruto's withdrawal does not hold water if not backed by legal provisions.

A bill becomes law 14 days after it has been approved by the National Assembly, should the president not formally act on it.

Amollo is seeking to recall and annul each clause of the Finance Bill, 2024 in the event they are enacted under Article 115 of the Constitution.

Section 6 states, "If the President does not assent to a bill or refer it back within the period prescribed in clause (1), or assent to it under (5)(b), the bill shall be taken to have been assented to on the expiry of that period."

Rarieda MP Hon. Otiende Amollo writes to the Speaker of the National Assembly, sponsoring a Bill to repeal the Finance Act (2024), which is currently a Bill but which is bound to become law by effluxion of 14 days as stipulated in Article 115(6) of the CoK. pic.twitter.com/j3aAZpcZD9

— J.P.A. (@JP_Barns) June 28, 2024

President William Ruto received the bill last week and declined to sign it on Tuesday, amid violent demonstrations in Nairobi and other key urban centres. He is under immense pressure from protesters to stop subjecting citizens to excessive taxation as this worsens their quality of life.

The head of state referred it back to the National Assembly with a recommendation to have it deleted and said he was ready for talks with the public on the best way forward.  He then communicated his decision in a memo to Parliament in an effort to prevent a crisis.

National Assembly Speaker Moses Wetang’ula then notified MPs of the President’s memorandum and has since contacted the Committee of Finance and National Planning for appropriate action.

The committee chaired by Molo MP Kimani Kuria is expected to table its report when the House returns from a short recess on July 23. It will have 21 days from that sitting to consider the report.

𝗣𝗥𝗘𝗦𝗜𝗗𝗘𝗡𝗧𝗜𝗔𝗟 𝗠𝗘𝗠𝗢𝗥𝗔𝗡𝗗𝗨𝗠 𝗢𝗙 𝗥𝗘𝗙𝗘𝗥𝗥𝗔𝗟 pic.twitter.com/Ul728TiwLk

— William Samoei Ruto, PhD (@WilliamsRuto) June 26, 2024

The loophole

Amollo has sought the approval of his drafted Finance Act, 2024 (Repeal) Bill which he says will help rectify the shortcomings in the bill.

“I believe that the route of repeal on the same day that the Finance Bill would become law under Article 115(6), lends itself to reason, logic and the Constitution more than the alternatives proposed,’’ he said.

“Such a route need not wait the expiry of the 14 days but can commence immediately, with attendant shortening of the process, and be passed by the National Assembly at a special sitting as may be necessary.’’

The MP explained that there is a legal loophole in what happens to the recommendation by the president to withdraw a bill already passed by Parliament, as the Constitution and the Standing Orders do not provide for such a scenario.

In his view, it would be wrong to amend a bill to result in nothingness as article 115(5) specifically expects the submission of a bill to the president after the process of consideration of his memorandum.

Source: X/William Ruto

Formal declaration

Amollo says his move is catalysed by the fact that Standing Order 154(5) specifically expects a vote on the amendment to the bill and does not contemplate a vote on the deletion of the entire bill.

“The entirety of the Standing Orders and parliamentary practice as variously reiterated by many speakers over time, does not contemplate amendments that negate a bill, or as would result in its complete voidance,’’ he says in a June 27 letter to Wetang’ula citing Standing Order 140.

“Contrary to the proffered opinion, neither the president nor Parliament can withdraw a bill that has already passed the Third Reading."

In the bill drafted by Amollo, the Finance Bill passed by the National Assembly on June 25 2024 will be recalled by the house and in the alternative repealed and declared in-operational and of no effect.

“For the avoidance of doubt, in the event that the Finance Act (2024) has come into effect under Article 115 of the Constitution, this Act specifically repeals and voids each of the sections inclusive of the Finance Act (2024),’’ the draft states.