Speaking at a press conference in Nairobi, Raila laid out the coalition’s objection to the revenue-raising measures contained in the Finance Bill 2023, arguing that they will plunge the country into a deeper economic crisis.
The Azimio head claimed that the Ruto-led government is the first to tax Kenyans heavily “in exchange for nothing but illusions and fairy tales.”
The former premier referred to the measure as “an illness that cannot be healed with common herbs” and warned that if it is passed, the country will enter a full recession.
“This bill sabotages the economy. This nation will enter a deep recession if Ruto persists on this Bill. To stop this bill, there must be ferocious opposition “Mr. Odinga remarked.
“Looking at the proposals, one cannot help asking what planet does Ruto live on? Does he understand what Kenyans are going through?”
The Azimio boss further censured the government for turning a blind eye to the economic plight Kenyans have been forced to endure and is instead seeking to impose higher taxes.
“The Bill exposes a clear disconnect between Ruto’s fantasy and the experiences of ordinary people,” he said.
He used the contentious Housing Levy as an example, claiming that the government failed to explain how it would benefit Kenyans.
“The government cannot agree whether it is a tax or an investment. Nobody knows how the government became an investment advisor to Kenyans. They ignore concerns by employers and employees that many payslips are already overwhelmed by deductions, loans and lack of pay rise,” he said.
He also challenged the increased VAT on fuel from 8% to 16% which he said will increase transport costs and the proposed 16 percent VAT on maize flour, cassava flour and wheat flour among many other taxes.
1. Stop duplication of county roles and responsibilities. In the proposed Bill, the budget for health is growing by Ksh35 billion at the national level, yet health is a devolved function.
2. Adopt zero-based budgeting. Don’t take the previous budget as the baseline. Every budget must start at ground zero where everything has to be justified.
3. Don’t grow the size of the budget, cut it down and live within your means.
4. Instead of imposing new taxes, seal the loopholes that lead to loss of revenue.
5. Stop non-essential government expenditures including the appointment of Chief Administrative Secretaries.
6. Reduce the size of government.
7. Cut non-essential Domestic and international travel.
8. Freeze ministerial out-of-station allowances, ministerial house allowances and domestic allowances for cabinet and principal secretaries.
9. Stop corruption and theft of public funds.
10. Finally, we ask Ruto to humble himself, withdraw this Bill, offer [an] apology and seek forgiveness from Kenyans for the anxiety caused, then begin afresh.
He further threatened that if the bill is approved in the National Assembly he will engage the “wider National Assembly of the whole people of Kenya” to overturn the approval.
