Why ODM could take over Ruto’s tax burden

The looming takeover of powerful parliamentary committees by Raila Odinga’s allies could be a double-edged sword that could transfer the taxes and budget baggage to the opposition.

As part of a compromise to allow President William Ruto’s troops to continue as the majority party in the National Assembly, Raila’s battalion is set to take over key committee leadership positions.

The positions include the powerful Budget and Appropriation Committee as well as the Finance Committee. The Budget Committee is responsible for the review of the estimates and making recommendations to the House.

The Finance Committee, on the other hand, reviews revenue-raising measures to finance the budget.

This essentially means that the budget-making process — an activity that is usually very emotive — would be entirely in the hands of Raila’s men.

Ruto’s top money man, Treasury Cabinet Secretary John Mbadi, is an ODM life member and the immediate former national chairman of the Orange party for many years.

Significantly, most of Raila’s allies nominated to Cabinet are in charge of key Kenya Kwanza legacy projects and could easily be blamed if they fall apart.

Cooperatives CS Wycliffe Oparanya is in charge of the Hustler Fund. Energy CS Opiyo Wandayi oversees the connection of more homes to the national grid as promised by the President.

Machakos Deputy Governor Francis Mwangangi told the Star the whole arrangement was meant to set Raila against the masses.

“Ruto is dealing strategically with Raila. He has ensured that ODM men are in charge of departments perceived to be oppressing Kenyans. One of them is Treasury and we have Cooperatives, which handles the Hustler Fund,” Mwangangi said.

“What UDA is strategising is to ensure the blame is on the other side and not on them. In the event Raila wants to compete against Ruto in future he (Ruto) can tell Kenyans it is the Raila men who came up with such tax measures.”

In the Senate, the Star established that Raila’s Azimio and Ruto’s Kenya Kwanza are negotiating how to share the leadership of committees.

This is after the House leadership removed former Deputy President Rigathi Gachagua’s allies from the membership and leadership of key committees.

Azimio, especially ODM, is pushing to chair at least five committees that were initially chaired by Gachagua’s men.

The negotiations have triggered the postponement of the election of the House committee leadership. The elections were initially scheduled for Monday and Tuesday.

They were pushed to Wednesday and Thursday before being eventually postponed to next week. Among the committees ODM/ Azimio wants to lead are Roads and Transport, Agriculture, Devolution, Trade and Education.

By handing the critical dockets to Raila, Ruto could easily hand over the tax controversies that almost brought his administration to its knees last year.

The issue of taxes is always emotive and, in most cases, met by street protests as was the case of last year when the country experienced unprecedented demonstrations against the Finance Bill, 2024.

Just six months ago, proposals to increase taxes triggered deadly nationwide protests that forced the administration to withdraw the Finance Bill and effect far-reaching changes in its ranks.

In an interview with the Star last month, National Treasury CS Mbadi however assured that the government will introduce minimal taxes in the coming budget.

“I don’t think Kenyans should brace themselves for any high taxes because we have made a commitment that we are not going to introduce any punitive taxes,” he told the Star.

“It is in line with our tax policy to have a predictable tax regime; the reason we had some changes previously is because when you come up with a new policy you have to settle in, we were settling in. “Going forward, we will see minimal changes on taxes, we will start with this year. I don’t see us having many tax proposals and especially those that are going to increase the taxes.”

Speaking in Baringo on Tuesday, Interior Cabinet Secretary Kipchumba Murkomen confirmed the spirit of the broad-based arrangement will be replicated in Parliament as in the Executive.

“The broad-based government is to bring everybody on board so that together we can think about how to solve problems in our country. At the Cabinet, we gelled well with Wandayi and Mbadi and you cannot know who was in ODM or UDA,” Murkomen said during a burial in Kisanana.

“Even in Parliament, you will soon see they are together and we will ensure unity as in the Executive. You will see some committees chaired by ODM, UDA and all other parties that have come to work with the government.”

It is understood that the Petitions, Health, and Labour committees will also be superintended by Azimio lawmakers.

Allies of Gachagua are targeted for removal in the sweeping changes set to be effected on Wednesday afternoon. In the last session, Endebess MP Robert Pukose chaired the crucial Health committee while Trade and Investment was chaired by Embakasi North MP James Gakuya.

The Labour committee is chaired by Runyenjes MP Eric Karemba. Gakuya is an unapologetic ally of Gachagua. Kiharu MP Ndindi Nyoro has been the chair of the powerful Budget and Appropriation Committee.

In the Senate, already Raila’s allies have scooped the leadership – chairman and vice chairperson – of two oversight committees.

They are the Senate County Public Investments and the Special Funds Committee and the Senate County Public Accounts Committee.

Homa Bay Senator Moses Kajwang’ was elected chairman of CPAC deputised by Taita Taveta Senator Johannes Mwaruma.

For CPISFC, Vihiga Senator Godfrey Osotsi retained the chairmanship of the powerful panel. He is deputised by Migori Senator Eddy Oketch.

Last week, the Senate purged James Murango (Kirinyaga), Karungo Thang’wa (Kiambu), John Methu (Nyandarua), Joe Nyutu (Murang’a) and Lenku Seki (Kajiado) from the leadership of committees.

Also removed from the powerful committees were Ruto’s fierce critics, including Kisii Senator Richard Onyonka and his Busia counterpart Okiya Omtatah.

Murango, who served as chairman of Agriculture, Livestock and Fisheries committee, was removed from the panel.

Thang’wa was kicked from the Roads, Transportation and Housing committee where he has served as chairman since 2022.

In a post on X, he said the purge, which had been looming for months, had finally been effected.

“I knew it would happen! I expected it! The purge has been effected. I take it like a man and vow to soldier on, unbowed. “Meanwhile, I sincerely thank the yellow party (UDA) for freeing up my schedule. Chairing the Roads & Transport Committee at the Senate was great,” he said.

Besides Transport, Thang’wa has also been removed from the powerful Senate County Public Investments and Special Funds Committee. Methu, on the other hand, suffered a twin blow after he was kicked out of the Land, Environment and Natural Resources committee where he served as the chairman and the Senate County Public Accounts Committee where he was a member.

Methu also took to social media to announce his ouster from the committees. He blamed his political alignment for the purge.

“It was an honour to serve in the House leadership as the chairperson of the Senate’s Lands, Environment and Natural Resources Committee as well as a member of the County Public Accounts Committee,” Methu said.

“The political choice I have consciously made contributes to the stripping. But I bow out with absolutely no regrets” The same fate befell Murang’a Senator Joe Nyutu, who was kicked out of the Education committee where he served as chairman for the last two years.

Kajiado’s Seki, a close ally of Gachagua, was removed from Trade, Industrialisation and Tourism committee where was chairman.