The big question on Kenyans’ minds is the process of the Finance Bill becoming law. Leaders have been noted declaring that the finance bill has been passed. The Finance Bill was first tabled in the national assembly on May 4th, 2023 by the National treasury seeking to amend several Tax Laws to increase the government’s revenue by collecting Ksh 2.89 Trillion in domestic revenue.
The Bill proposes a raft of tax changes geared towards expanding the tax base and raising revenues to meet the government’s ambitious Ksh 3.6 trillion budget for the year 2023/2024. The Bill was sponsored by Majority Leader Kimani Ichung’wah.
Some of the tax changes affected by the proposal include the VAT increase on Petroleum products, Housing Levy, and Income Tax on Individuals Earning above 500,000 Kenya shillings among others.
The Finance Bill is now at its committee stage, the third step of the 6-step process of making a Finance Bill into law.
The first stage
The first step involved the presentation of the Bill by the National Treasury which proceeded to public participation held by the National Assembly Finance and Planning Committee, and from the views collected, presented a report to the national assembly.
The second stage
Once the views are collected from the public, the Bill proceeds to the second reading which involves reading the Bill a second time and driving it to debate and discussion, highlighting the goals, principles, and benefits of the Finance Bill. The second reading that happened last week Wednesday was voted on and the Bill is now at its third stage.
The Third stage
Also known as the Committee stage, takes place through the Committee of the Whole House entailing the deliberation of every clause of the Bill and voting by members of Parliament on each modification. The Committee decides whether each clause of the Bill should remain, be deleted, or amended.
The Fourth stage
Also known as the report stage, where the agreed amendments from the committee stage are presented to the House. Here the members are allowed minimal contribution on the former, which could also see a recommittal.
The fifth stage
Also known as the third reading, the Bill is read a third time to the House with minimal debate allowed. Then a final vote is taken where the Ayes have it.
The sixth and final stage
The Presidential assent where the Bill now with amendments is presented to the president who within fourteen days signs it and it becomes law and act of the parliament.
In the occasion the president fails to sign the Bill into law, it goes back to parliament, to amend it in light of president’s reservations and it can be passed a second time without amendments. And the speaker of the house resubmits it to the president for assent.