Musalia Mudavadi: Expect More in Finance Bill Tax Measures for Next 3 Years

• Kenyans continued with protests against the Finance Bill 2024 for the third day on Friday, June 21, 2024
• This followed a second reading of the bill on Thursday, June 20, which received approval Members of Parliament (MPs)
• Prime Cabinet Secretary (CS) Musalia Mudavadi warned MPs against shooting down revenue-raising measures in the upcoming third reading

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TUKO.co.ke journalist Wycliffe Musalia brings over five years of experience in financial, business, and technology reporting, offering deep insights into Kenyan and global economic trends.

Finance Bill 2024 is expected to undergo a third reading next week after a successful second reading.

Prime CS Musalia Mudavadi speaking at a past event. Photo: Musalia Mudavadi. Source: UGC

Prime Cabinet Secretary (CS) Musalia Mudavadi warned that the bill must be approved to help the government achieve its economic mandate mandates.

Why is Ruto's govt raising taxes?

Speaking in Baringo county on Friday, June 21, Mudavadi reminded Kenyans that President William Ruto inherited a dilapidated economy and has been taking tough measures to revive it.

The Foreign Affairs CS said Kenyans should brace for these tough taxation measures for a minimum of three years.

"I told Kenyans that President William Ruto was taking over a government with a huge budget hole. The burden will take a minimum of three years for us to start enjoying the benefits. I said it then and now we are seeing it," said Mudavadi.

Mudavadi warned members of parliament against shooting down the Finance Bill 2024, noting that the opposition is planning to sabotage the government.

"It is either we continue borrowing at a high rate, cut our expenditure and increase revenue locally. That is the difficult decision that the Ruto has got to make and that is the decision before parliament."

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Why Ruto wants Finance Bill 2024 approved

This followed the National Treasury's warning that if members of parliament fail to approve tax clauses in the bill, the exchequer will suffer a KSh 200 billion budget hole.

Treasury Cabinet Secretary (CS) Njuguna Ndung'u urged legislators to approve the Finance Bill 2024 as earlier proposed to seal the deficit.

However, the proposed three measures should be approved by MPs if they fail to pass the Bill as the Treasury proposed.

In May 2024, Ruto praised the measures taken by the Treasury and his economic advisory team led by David Ndii.

Ruto maintained that Kenya should live within its means, noting that the government will be operating on a balanced budget in the next three years.

Proofreading by Asher Omondi, current affairs journalist and copy editor at TUKO.co.ke.