President Ruto Signs Controversial Finance Bill 2023 Into Law

The controversial Finance Bill 2023, which was approved by the National Assembly last week, has been signed into law by President William Ruto.

At State House in Nairobi on Monday morning, the president gave the Bill his blessing.

Kuria Kimani, the head of the National Assembly Finance and National Planning Committee, gave the Bill its third reading, and it was quickly passed through Parliament. As a result, Kenyans will now have to dig even deeper into their pockets to pay for the government’s first budget.

The Bill was subject to 87 proposed revisions, some of which the National Assembly passed on Tuesday after a late-night debate.

One of the most significant ideas adopted was an increase in the value-added tax on fuel from 8% to 16%.

Except for Githunguri MP Gathoni Wamuchomba, at least 184 MPs—mostly from Kenya Kwanza—supported the bill, while 88 MPs—mostly from Azimio—opposed the amendment.

The contentious Housing levy, which had initially proposed to be at 3 per cent was also passed after it was amended to 1.5 per cent of gross pay. It had been converted into a tax.

The initial proposal called for the levy to be a savings account that Kenyans could access after seven years.

Digital creators will be subject to a 5% tax. This figure was originally proposed to be 15%.

Betting and insurance withholding taxes will be charged at 12.5% and 16%, respectively.

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