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President Uhuru signs controversial Finance Bill 2018 into law

By Fredrick Obura | Published Fri, September 21st 2018 at 10:18, Updated September 21st 2018 at 17:40 GMT +3
Done: President Uhuru Kenyatta signs Finance Bill 2018 into law. [Standard]

NAIROBI, KENYA: President Uhuru Kenyatta on Friday signed into law the Finance Bill 2018.

The Bill, passed by the National Assembly on Thursday, reflects the President’s recommendations for a reduction of VAT on petroleum products from 16 to 8 per cent among other amendments on various taxes.

ALSO READ: Uhuru's headache, suffering taxpayer

President Uhuru also signed into law the Coast Guard Bill 2018 which marks an important milestone in the management and enforcement of laws in Kenya’s internal and territorial waters.

The Coast Guard Act 2018 establishes the Kenya Coast Guard Service which will be responsible for enforcing maritime security and safety, pollution control and sanitation measures as well as prosecution of offenders. The Coast Guard Service will also be responsible for port and coastal security, search and rescue, and the protection of maritime resources including fisheries.

The President emphasised his commitment in ensuring that public resources are utilized effectively. He added that he will not relent on the war against corruption and asked Kenyans to join him to make Kenya a better place.

The two Bills were presented to President Kenyatta for signing by National Assembly Speaker Justin Muturi.

President Uhuru Kenyatta on Thursday got his way with a raft of new taxes in a chaotic session characterised by claims of underhand dealings and blackmail in Parliament.

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The majority of MPs opposed to the eight per cent value added tax on petroleum products alongside others, were shrewdly defeated by denying the National Assembly the requisite two-thirds majority (233) required to override the President’s recommendations on the Finance Bill 2018.

The controversial vote meant besides the fuel tax, salaried workers will hand a fraction of their pay to the Government to finance a housing project, mobile phone users will incur additional duty and bank transfer costs as the Jubilee administration struggles to plug a budget hole created by rising expenditure and shrinking revenues.

ALSO READ: Uhuru wins as 8pc VAT on fuel sails amidst protest


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