Azimio la Umoja One Kenya Coalition Leader, Raila Odinga, delivered a fierce denunciation of the Finance Bill 2024 on Friday, June 7, calling for drastic revisions to the proposed legislation.
Odinga condemned the Finance Bill 2024, arguing it exacerbates an already intolerable tax burden without improving public services. “The tax burden in Kenya is at its highest level since independence, but public services have largely remained on their knees. As if this is not bad enough, the Finance Bill 2024 proposes even more and higher taxes. Consequently, the people and the country will be way worse off at this time in 2025 if the Finance Bill 2024 does not undergo radical surgery,” Odinga asserted.
Odinga lambasted the bill for failing fundamental taxation principles of predictability, simplicity, transparency, equity, administrative ease, and fairness. “It is worse than the one of 2023, an investment killer and a huge millstone around the necks of millions of poor Kenyans who must have hoped that the tears they shed over taxes last year would see the government lessen the tax burden in 2024,” he declared.
Odinga, who is backed by President William Ruto’s government for the African Union Commission chairperson seat, did not hold back in his critique. He labelled the bill a “regressive taxation proposal that goes ruthlessly after the poor.” According to him, if ratified, low-income Kenyans would face taxes on multiple fronts, resulting in them paying more than those with higher incomes.
“The Bill is a regressive taxation proposal that goes ruthlessly after the poor. Should it be ratified, low-income people will be hit with taxes on multiple fronts and will end up paying more than people with higher incomes. It is obvious that tax on basic necessities such as food, cooking oil and money transfer disproportionately hurt the poorest of the poor,” he noted.
Odinga warned of the negative consequences of raising Import Declaration Fees from 2 per cent to 3 per cent, predicting increased costs of goods. He also criticised the proposed Eco Levy on diapers, highlighting the disproportionate impact on the poor.
“In the Finance Bill 2024, insurance and reinsurance services are being removed from tax exempt status, to be subjected to 16 per cent tax. It affects every kind of insurance, from life to property to health to education. That could kill the already struggling insurance industry. The tax will kill an industry that is barely alive,” he stated.
Odinga’s denouncement reflects the growing discontent among many Kenyans who feel the increasing tax burden is not matched by improvements in public services. His call for a radical overhaul of the Finance Bill 2024 underscores the urgency of addressing the economic challenges faced by the nation’s poorest citizens. As the debate over the bill continues, it remains to be seen whether the government will heed Odinga’s warnings and make the necessary changes to ensure a fairer and more equitable tax system.