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Narok County Senator Ledama Ole Kina has bashed the Kenya Kwanza Members of Parliament after withdrawing the contentious parts of the 2024 Finance Bill.

After a Parliamentary meeting at State House attended by President William Ruto and his deputy Rigathi Gachagua, the ruling party confirmed that the issues that generated heat have been withdrawn.

However, Ole Kina believes that the whole bill is dangerous and wants it completely withdrawn.

“You cannot lie to Kenyans that you have listened to them and have done away with a few punitive clauses! The whole bill is dangerous withdraw it! You are taxing our land as if we are foreigners,” Ole Kina said in a statement on X.

Withdrawn tariffs

After the meeting at State House on Tuesday, June 18, 2024, the parliamentary group confirmed that 16 per cent VAT on bread, VAT on transportation of sugar and VAT on financial services and foreign exchange transactions have also been removed.

 2.5 per cent Motor Vehicle Tax has also been removed as well as excise duty on vegetable oil. It further said that there will be no increase in mobile money transfer taxes.

In a presser, the Kenya Kwanza said that levies on the Housing Fund and Social Health Insurance will become income tax deductible, which means the levies will not attract income tax, putting much more money in the pockets of employees.

Eco Levy is being levied on imported finished products and locally manufactured products will not attract the Eco Levy.

“Consequently, locally manufactured products, including sanitary towels, diapers, phones, computers, tyres and motorcycles, will not attract the Eco Levy. The threshold for VAT registration has been increased from Ksh5 million to Ksh8 million. This therefore means that many small businesses will no longer need to register for VAT,” the statement added.

“Responsibility for electronic invoicing ETIMS, recently introduced by KRA, has been receded from farmers and small businesses with a turnover of below Ksh1 million. Excise duty imposed on imported table eggs, onions and potatoes to protect local farmers.”

However, excise duty on alcoholic beverages will now be taxed on the basis of alcohol content and not volume.

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