You'll still hurt Kenyans by taxing imports – Azimio to State

The Opposition Azimio has condemned the government’s concession on a number of contentious clauses in the Finance Bill, 2024.

The Kenya Kwanza government on Tuesday held a Parliamentary Group meeting at State House chaired by President William Ruto and in a statement said they had listened to Kenyans’ cry and dropped proposed taxes deemed to be punitive.

They include the Eco Levy which they said will now only be levied on imported finished products to protect local locally manufactured products.

“Locally manufactured products will, therefore, not attract the Eco Levy. Locally assembly and manufacturing will help boost Kenya's manufacturing capacity, create jobs and save foreign exchange,” chair, Finance Committee of the National Assembly Kimani Kuria said.

“Consequently, locally manufactured products, including sanitary towels, diapers, phones, computers, tyres and motorcycles, will not attract the Eco Levy,” he explained.

In the same breath, he said Excise duty will be imposed on imported table eggs, onions and potatoes to protect local farmers.

But in a quick rejoinder, Azimio MPs led by Embakasi East legislator  Babu Owino convened a press conference at Parliament Buildings and rebuffed the development as nothing short of a Public Relations gimmick.

Babu said imposing taxes on imported goods will still hurt Kenyans since most other basic items are imported.

“Kenya as a nation depends on 80 per cent of imported goods, including toothpick, tissue paper, foodstuffs, eggs [and] chicken. We are importing all these,” the MP said.

“Therefore,” he went on, “as you purport to only remove the taxation on the locally produced goods but you still raise the tax on imported goods, the person who is going to bear this burden is the common mwananchi.”

According to their reasoning, the Azimio MPs contend that the move by the government is not going to lessen the cost of living on ordinary Kenyans in any way.

“We are not going to take it lightly; we are urging Kenyans to still come out in large numbers, from every ward, from every subcounty, from every county,” Babu said.

He commended Kenyans who showed up in numbers to protest against the Finance Bill in the streets of Nairobi and urged them not to relent as they plan to hold nationwide protests in the coming days.

“The nationwide demonstrations should be held in a very coordinated way and manner to show this regime that power belongs to the people.”

The Embakasi MP said without the removal of taxes on imported goods, the demonstrations will not relent.

“We will soon join you in these demonstrations after our debates and I urge all members of Parliament to still vote No against the draconian, oppressive Finance Bill that has caused untold sorrow to Kenyans.

The Finance Committee of the National Assembly tabled the report on the Bill on Tuesday but debate is slated for Wednesday through to Thursday and voting expected on Tuesday next week.

Leader of the Majority side Kimani Ichung’wah urged Kenyans who came out to demonstrate and occupy Parliament to hold their horses as they was no more contention on the clauses they wanted dropped.

This was after proposed VAT on bread, transportation of sugarcane, financial services and foreign exchange transactions, Excise duty on vegetable oil and 2.5 per cent Motor Vehicle Tax has was dropped.

“You spoke, and we listened. The Finance Bill 2024 has undergone significant alterations following the invaluable submissions from the public hearing. This administration is not a deaf administration; it listens to its people's needs.

“There is absolutely no debate today, debate shall begin tomorrow morning, the whole of tomorrow and continue on Thursday and will allow time over the weekend for possible amendments from other Members of Parliament,” Ichung’wah said.