Treasury CS nominee John Mbadi has downplayed concerns over the rejection of the Finance Bill, 2024, assuring that alternative revenue collection methods are available that do not involve reintroducing the entire contentious document.
Mbadi emphasized that the Finance Bill contained beneficial provisions that could be salvaged through amendments to existing legislation, hinting at the potential introduction of a Tax (Amendments) Bill.
He attributed the bill’s failure to insufficient public engagement and ineffective communication. “There were valuable provisions in the rejected Finance Bill that were lost due to inadequate public participation and communication. These can be reintroduced as specific amendments with proper public consultation,” he said.
Mbadi also clarified that the Finance Bill usually includes several tax-related amendments, which he plans to address through targeted legislation if confirmed. “The Finance Bill typically amends various statutes such as excise duty, import duty, VAT, income tax, and the Tax Procedures Act. We can address these through specific statutes without needing a comprehensive Finance Bill, and I will seek guidance from the Attorney General,” he explained.
Offering a glimmer of hope for the Kenya Kwanza administration, Mbadi noted that historically, the Finance Bill was often passed by September during the 10th and 11th Parliaments. “We used to have three months into the financial year to pass the Finance Bill,” he observed.
