Finance Bill 2024: Step-by-Step Breakdown Stages Left Before Ruto Signs Bill to Law

Kenya's Finance Bill 2024 passed the second reading stage, with 204 MPs voting yes and 115 rejecting it amid nationwide protests.

Kenyans have been protesting the Finance Bill 2021 as Kenya's President William Ruto insists the bill is necessary. Photo: Getty Images/William Ruto. Source: UGC

This stage of one of the many steps in the legislation process under the constitution of Kenya.'

Is Finance Bill 2024 a law?

The Finance Bill 2024 has not yet become a law. However, it is in the legislation belt, which ends with the president's signature.

In the legislative process, understanding how a bill becomes law is crucial for comprehending how governmental decisions are made. Below is a step-by-step breakdown of the legislation process for a bill.

The primary step is the origination process. The Finance Bill 2024 originated from the National Treasury as proposals on how the government could increase revenue collections to fund the 2024/25 FY budget.

Step 1: Introduction of a bill

According to the Parliament of Kenya, a bill proposal is sent to the speaker, who approves it and sends the bill's sponsor to the clerk of the National Assembly, who publishes it and assigns it a number.

Kuria Kimani, the MP for Molo and the chairperson of the Departmental Committee on Finance and National Planning, sponsored the Finance Bill 2024.

Step 2: First reading

The first action is the first reading of the bill's title in parliament, and then the bill is referred to the relevant parliamentary committee for detailed examination.

The Finance Bill 2024 was first introduced in parliament on May 13 2024, and it was referred to the relevant committee.

Step 3: Committee stage

The assigned committee studies the bill thoroughly and invites views from the public and stakeholders.

After collecting views on the Finance Bill 2024, the Departmental Committee on Finance and National Planning retreated to Naivasha and made recommendations that were tabled in parliament on Tuesday, June 18.

Then, the House Business Committee scheduled the bill for its second reading in the House.

Step 4: Second reading

During the second reading, the bill undergoes floor discussions and debates. Following this, a vote is conducted to determine whether the bill will proceed to the next stage.

During this stage, Kenyans began protesting, calling on their MPs to vote no and end the bill. However, the majority of the MPs voted for the bill, enabling it to move on to the next stage.

Step 5. Committee of the Whole House Stage

The Finance Bill 2024 is yet to undergo this stage where the whole house discusses and votes on proposed amendments.

MPs are scheduled to discuss the proposed amendments to the Finance Bill in the coming days.

Step 6. Third reading

The bill will be discussed once more in the third reading, focusing on the final version that includes all accepted amendments. Then, a final vote will be taken, and if Approved, it is sent to the president.

The Finance Bill 2024 will undergo this stage in the coming weeks.

If there are disagreements between the two Houses (National Assembly and Senate) on the bill or its amendments during the third reading stage, a mediation committee is formed. This committee attempts to reconcile differences and produce a unified version of the bill.

The mediated version of the bill is debated in both Houses. If both Houses approve it, the bill is then sent for presidential action.

8. Presidential Action

After the bill is sent to the president he has 14 days to either assent to the bill or refer it back to the originating House with explanations for refusal.

If the President assents, the bill becomes law. If the President refuses, the bill is referred back to the originating House.

If the president sends the bill back, the House can either accept and fully accommodate the president's recommendations or override the President's veto with a two-thirds majority vote in both Houses.

9. Bill Becomes Law

Once the bill receives the president's assent or both houses successfully override a presidential veto, it officially becomes law.