Ruto Reveals Gov’t Is Exploring Ways To Raise Revenue After Finance Bill Flop

President William Ruto has revealed that the Treasury is exploring alternative revenue avenues following the withdrawal of the Finance Bill 2024.

Speaking during a Town Hall meeting in Kisumu, the President emphasized the urgency of finding new financial solutions after he declined to sign the bill into law, a decision made in the wake of the deadly Gen-Z protests that resulted in nearly 60 fatalities.

“When we lost the finance bill, we lost close to Sh340 billion of the money we could have raised through that finance bill. We are, however, having discussions with our partners, and I am confident that we can have things turned around,” Ruto said.

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The President indicated that he has already received proposals from the National Treasury on alternative financing methods for his administration. The proposals include engaging Parliament to draft and pass new financial legislation based on the Treasury’s recommendations.

The Finance Bill 2024 was withdrawn on June 25, following widespread protests, marking it the first Finance Bill to be rejected in Kenya since independence.

The withdrawal left the government reliant on the current Finance Act, as well as external and internal borrowing, to manage the Sh3.9 trillion budget and address the ensuing budget deficit.

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In a related development, Treasury Cabinet Secretary John Mbadi announced plans on Tuesday to reintroduce key provisions from the suspended Finance Bill 2024 through the newly proposed Tax Procedures (Amendment) Bill, 2024.

The bill, published in the latest Kenya Gazette Supplement No. 165, aims to reinstate some of the previously contentious measures in a bid to enhance tax collection and administration.

The proposed amendments to the Tax Procedures Act are seen as crucial for improving the government’s ability to generate revenue in the absence of the Finance Bill 2024, as the administration seeks to stabilize the nation’s financial position.