National Assembly Majority Leader Kimani Ichung’wah has conceded that nearly the entire Finance Bill 2024 was pushed through Parliament on 4 December 2024, months after deadly street protests forced the government to shelve the original text.
Speaking during a Sunday service at PCEA Kikuyu, the Kikuyu MP said the government paused the bill last June to “let tempers cool,” then re-introduced its provisions – 97 per cent of them – via the Tax Laws (Amendment) Bill 2024 and the Business Laws (Amendment) Bill 2024.
“We tried to enlighten them, but they did not listen to us. Finally, we decided not to pass it until people cooled down,” Ichung’wah told the congregation.
“On December 4, everything that was in the Finance Bill was passed quietly, without any deaths or throwing stones.”
According to Ichung’wah, only three per cent of the original clauses were dropped after a public campaign dubbed “Don’t amend, reject.” Key roll-backs included:
- Scrapped: 16 per cent VAT on bread, cooking oil, eggs, and other staples.
- Dropped: 1.5 per cent Digital Service Tax and 6 per cent Significant Economic Presence levy – replaced by a single, lower SEP rate near three per cent.
- Abandoned: Motor-vehicle tax and eco-levies on items such as diapers and phones.
The December package instead raised allowable pension deductions, exempted Affordable Housing contributions, and introduced a 15 per cent global minimum tax for multinationals.
Revenue and Rationale
Ichung’wah insisted critics had misrepresented the original bill, especially claims that it would tax locally made diapers and sanitary towels. He argued the import-only levy now protects Kenyan manufacturers and “creates jobs for young people.”
He added that the amendments have already netted Ksh 187 billion in extra tax by May 2025, helping revive stalled public-works projects. The Treasury had projected Ksh 346 billion by June 2025; pausing the bill for six months cost roughly Ksh 160 billion in lost revenue.
Political Fallout
The admission has reignited anger among Kenyans who braved tear gas and live bullets last year to stop the bill. Youth activists, already planning demonstrations on this Wednesday, to mark the anniversary of last year’s June 25th protests, say Ichung’wah’s remarks prove their fears were justified.
