MP Otiende drafts law to 'repeal' Finance Bill

The MP says his bill gives effect to the will of Kenyans in rejecting the Finance Bill, 2024

In Summary
  • President Ruto rejected the Finance Bill, 2024 and referred it back to the National Assembly to be deleted.
  • Otiende argues that there is a legal lacuna on what happens to the recommendation by the President to have a Bill already passed by Parliament deleted.
Rarieda MP Otiende Amollo
Rarieda MP Otiende Amollo
Image: FILE

Rarieda MP Otiende Amollo has drafted a Bill seeking to repeal the controversial tax law returned to Parliament for deletion by President William Ruto.

This Bill recalls and annuls each clause of the Finance Bill (2024) and in the event the same has been enacted in accordance with Article I15 of the Constitution, repeals each section of the Finance Act (2024).

President Ruto rejected the Finance Bill, 2024 and referred it back to the National Assembly with a recommendation to delete it saying he had listened to Kenyans and conceded.

National Assembly Speaker Moses Wetang’ula has written to MPs notifying them of the President’s memorandum and referred the same to the Committee of Finance and National Planning.

The committee chaired by Molo MP Kimani Kuria is expected to table its report when the House returns from a short recess on July 23. The House will have 21 days from that sitting to consider the report.

Amollo, who is also a constitutional lawyer, has however written for approval of his drafted Finance Act, 2024 (Repeal) Bill that he says will cure what the law did not contemplate.

“I believe that the route of repeal on the same day that the Finance Bill would become law pursuant to Article 115(6), lends itself to reason, logic and the constitution more than the alternatives proposed,’’ Otiende said.

“Such a route need not wait the expiry of the 14 days but can commence immediately, with attendant shortening of the process, and be passed by the National Assembly at a Special sitting as may be necessary.’’

The Finance Bill, 2024 would become law on July 9, 2024, being the 14 day since the Speaker submitted it to the President for assent. However, the President bowed to public pressure and rejected the Bill, asking the House to delete the clause.

Otiende argues that there is a legal lacuna on what happens to the recommendation by the President to have a Bill already passed by Parliament deleted.

He says the Constitution and the Standing Orders do not provide for such a scenario where the President rejects signing a Bill passed by Parliament and instead returns it to the House for deletion.

The MP says it would be inconceivable to amend a Bill to result in nothingness as article 115(5) specifically expects submission of a Bill to the President after the process of consideration of the president’s memorandum.

According to Amollo, his push is motivated by the fact that Standing Order 154(5) specifically expects a vote on the amendment to the Bill and does not contemplate a vote on the deletion of the entire Bill.

“The entirety of the Standing Orders and parliamentary practice as variously reiterated by many Speakers over time, does not contemplate amendments that negate a Bill, or as would result in its complete voidance,’’ Otiende says in his letter dated June 27.

“Contrary to the proffered opinion, neither the President nor Parliament can withdraw a Bill that has already passed the Third Reading,’’ Amollo says in his letter to Wetang’ula citing Standing Order 140.

In the Bill drafted by Amollo, the Finance Bill passed by the National Assembly on 25th June 2024 will be recalled by the house and in the alternative repealed and declared in-operational and of no effect.

“For the avoidance of doubt, in the event, that the Finance Act (2024) has come into effect under Article 115 of the Constitution, this Act specifically repeals and voids each of the sections – 65 inclusive of the Finance Act (2024),’’ the draft Bill reads in part.

According to Otiende, his bill gives effect to the will of the people of Kenya in rejecting the Finance Bill.

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