What next for Kenya as President signs the bill

Photo [Courtesy]

Presidents Uhuru Kenyatta has finally signed Finance Bill proposals after it was disputed by majority of members in the august house. The bill which has been effected with will serve to achieve collection of revenue for the 2018/19 financial year.

Hopes of many Kenyans majority who live below the poverty line will have to bear the burden which involves taxing money transfers, mobile internet data and fuel for a supplementary budget.

The bill seeks to raise close to Sh130 billion to finance this financial year’s budget which is expected to be slashed by Sh55 billion.

The bill was expected to be deferred for another two years to allow the citizens re-correct themselves in terms of financial standings in the wake of ballooning cost of living.

The president recently slashed the VAT by 50 percent from 16 percent to eight percent but Members of Parliament proposed it to be reduced to zero percent and seek alternative avenues of raising revenue to finance its activities.

Kenya now is set to be in good standing with International Monetary Fund (IMF) for new debt as it battles to raise revenue for this financial year. This means that the country has to service part of its huge debt from the international market through paying these taxes.

With a debt of Sh5.3 trillion, Kenya had plans of paying at least Sh658.2 billion in the 2017/18 financial year. The figure was equated to a sum of 40.3 percent of Sh1.6 trillion revenue targets.

The passing of the bill saw Kenyans turn their anger on twitter through hashtag #FinanceBill2018

@hassanmutubwa

“See yourself Kenya 349 mps, 67 senators, 47 Governors More than 2000 MCAs Total salaries and benefits per month is over Kes500 million ,this is where the rain started beating us”

 @iam_NMresilient

“Yet another landmark in The Kenyan Story, rigging finally reached Parliamentary vote. I never thought I'd live to see the day.”

 @KairuWangombe

“Now that the bill was passed in a coup stage managed by State House, bear in mind the rate capping law,is still in the cards. CS Rotich said we shall '"revisit”. The state mercenaries are impervious to the plight of #Wanjiku, nothing can save us except a civilian coup.”

 

 @Consumers_Kenya

“@energy_ke has reduced the price of a litre of super petrol by Sh8.8 and that of diesel by Sh7.35; kerosene price goes up by Sh10.71 per litre. “

 @MukhebiL

“Right now if you use a stove or kerosene lantern and another person drives a diesel powered car, you're paying the same amount per liter of fuel.”

 @bulimu_lydia

“An unlimited power to tax involves, necessarily, the power to destroy.”

 @IftiinFm

“The Union of Kenya Civil Servants has expressed disappointment over the passage of the finance bill 2018 by Members of Parliament, saying it will reduce the purchasing power of Civil Servants”.

 @KEVINMAINA_

“By signing #FinanceBill2018 into law @UKenyatta has failed Kenyans. You have avoided the hard choice and gone for cosmetic changes.”