Uhuru, Raila set to meet MPs as resistance to new taxes rises

Scarcity and scramble for fuel commodity bites in the country following the imposition 16%VAT. [Jonah Onyango, Standard]

The number of MPs opposing additional taxes on Kenyans has increased even as President Uhuru Kenyatta and Opposition leader Raila Odinga meet their respective party members today.

Uhuru is expected to host a Jubilee Parliamentary Group (PG) meeting at State House to whip the ruling party’s MPs into backing his recommendations on the Finance Bill, which include an eight per cent value added tax on petroleum products as well as spending cuts.

Some Jubilee MPs have spoken out against the additional taxes, arguing that they will further punish Kenyans already struggling with the high cost of living.

“The PG is on and the agenda of the meeting will be known tomorrow (today),” said National Assembly Leader of Majority Aden Duale.

Raila is also expected to chair an Orange Democratic Movement (ODM) PG meeting on the contentious issue that has drawn resistance from MPs who want the VAT on petroleum products either suspended for two years or scrapped altogether.

John Mbadi and James Orengo, the minority leaders in the National Assembly and Senate respectively, have opposed the additional taxes.

Raila had assured Kenyans that Uhuru would sign the amended Finance Bill that suspended the new tax.

However, Uhuru rejected plans to suspend the VAT and instead proposed a reduced rate of eight per cent as he sought money to fund his affordable housing project, which is part of his Big Four development agenda.

Raila and other leaders of the National Super Alliance-affiliated parties with representation in Parliament, Kalonzo Musyoka and Musalia Mudavadi, have backed the President’s recommendations.

Yesterday, Mr Orengo pleaded with MPs to reject proposals by the head of State. He said the National Assembly should not agree to be an appendage of the Executive.

Orengo noted that the country was hurting from the ever-increasing cost of living.

“I appeal to members of the National Assembly to reject the reservations by President in regard to the Finance Bill 2018. If we follow this direction we are going to support extravagant spending of Jubilee government. This is the time for Parliament to show it is a representative of the people,” the senator said.

In the National Assembly this afternoon, Speaker Justin Muturi will communicate the President’s memorandum detailing his reservations on the Finance Bill 2018, while Duale will table the supplementary estimates laying out the proposed budget cuts.

The House will take a final vote on Thursday, with MPs required to marshal at least two-thirds majority - 233 members - to veto the President’s memorandum. Jubilee’s PG is intended to whip at least 117 members required to defeat the onslaught by the group campaigning against Uhuru’s recommendations.

National Treasury Cabinet Secretary Henry Rotich will tomorrow appear before the Budget and Appropriations Committee over the proposed budget cuts. The campaign against the new taxes gathered pace yesterday as MPs Didmus Barasa (Kimilili), Rashid Amin (Wajir East), Tindi Mwale (Butere) and Johnson Naicca (Mumias West) declared they would not support Uhuru’s proposals. Speaking at Parliament, they said the memorandum, which recommends eight per cent VAT would burden Kenyans more.

“We will stand with the common mwananchi on this matter. We will not allow poor Kenyans to pay more taxes. We will shoot down the proposal and no amount of intimidation will make us change our minds,” said Mr Barasa.

“The economy should be improved first before we think of increasing taxes. I am ready to defy the position taken by the Jubilee leadership on this matter for the sake of the people I represent,” he said.

Mr Amin said: “We will not accept any proposal to increase VAT. We will overturn the proposal because we have the numbers.”

Naicca and Mwale faulted Uhuru for proposing the reduction of funds meant for development kitties such as the National Government Constituency Development Fund (NG-CDF) as well as money allocated to counties.

“When you suggest Sh5 billion should be cut from CDF that means construction of schools and other infrastructure in the constituencies will stall. The President’s memorandum is not good for Kenyans,” said Naicca.

Mwale said: “We will not accept the plan to reduce funds meant for institutions that help the poor. The President should instead reduce the budget for his office or the ministries.”

Nyando MP Jared Okello said no amount of intimidation would dissuade the MPs from siding with Kenyans. And Aldai MP Cornelius Serem said they would attend the State House meeting for a “win-win engagement”.

“We hope the President will also listen to our concerns. We will tell him our position because we want fuel to be zero-taxed,” he said.

[Reporting by Rawlings Otieno, Daniel Psirmoi and Moses Nyamori]