MPs will not be recalled for a special sitting on Finance Bill, 2024

Parliament Buildings

A section of Parliament Buildings, Nairobi. 

Photo credit: File | Nation Media Group

The National Assembly will not be recalled for a special sitting to consider President William Ruto's reservations on the now abandoned contentious Finance Bill 2024, which sparked mass protests and a breach of Parliament premises on Tuesday, June 25.

The Speaker of the National Assembly, Moses Wetangula, who received President William Ruto's memorandum on his reservation to withhold assent to the Finance Bill on Wednesday evening, will notify each of the 349 MPs of the implications of the President's action.

Under the rules of the House, if a message from the President is received at a time when the House is not sitting, the Speaker must immediately cause the message to be sent to each Member and report the message to the House on the day it next sits.

This means that the earliest the House can consider the President's memorandum asking MPs to strike out the entire provisions of the Finance Bill 2024 is July 22, following the House's recess on Thursday.

"When a message from the President is read, the message shall be deemed to have been laid before the House and the Speaker may either direct that the message be dealt with forthwith, or appoint a day for the consideration of the message, or refer the message to the relevant committee of the House for consideration," Standing Order 42(3) states.

Parliament went into a month-long recess on Thursday morning after MPs passed a motion to deploy the Kenya Defence Forces (KDF) to assist police in quelling unrest after youth-led protests led to the invasion of Parliament.

On Wednesday, Dr Ruto bowed to pressure from young protesters and the concerns of Kenyans and asked the National Assembly to withdraw the bill in its entirety.

Dr Ruto refused to assent to the Finance Bill, 2024 and fired a memorandum back to the National Assembly recommending that MPs delete all clauses.

The Bill would have automatically become law within 14 days if the President did not return it to the House with a memorandum recommending its deletion.

The recommendation by the President to return the Bill with recommendations to delete all clauses means that the Bill is technically dead.

The President’s message, which was received by Mr Wetangula on Wednesday evening has been deemed to have been committed to the Departmental Committee on Finance and National Planning for consideration.

The committee, chaired by Molo MP Kuria Kimani is expected to consider the President's memorandum and file a report when the House reconvenes on July 22, 2024.

MPs will be required to vote on the President's recommendation to delete the Bill in its entirety by voting on it clause by clause.

It will require an MP seeking to retain a clause in the Bill or overturn the President's memorandum to raise 233 MPs or a two-thirds majority.

Once the entire clauses of the Bill is deleted, it can only be reintroduced after six months.

The Bill was to become law by June 30 and take effect from July 1, 2024 and run to June 30, 2025.

“I decline to assent to the Finance Bill 2024, and refer the Bill for reconsideration by the National Assembly with the recommendation for the deletion of all clauses thereof,” Dr Ruto said in the memorandum notifying Parliament of his reservations about revenue raising law.

The government was banking on the passage of the Bill to raise Sh347 billion in the financial year 2024/25 to plug the deficit on Dr Ruto’s Sh3.92 trillion budget.

Dr Ruto had last week climbed down and accepted the National Assembly’s Finance and National Planning proposals to delete the proposed imposition of value-added tax (VAT) on bread, 2.5 percent motor vehicle levy, 25 percent excise duty on edible oil and the controversial eco levy imposed on plastic packaging materials at the rate of Sh150 per kilogramme.

If the MPs vote to delete all clauses of the Finance Bill 2024 as proposed by Dr Ruto, the government will proceed with the revenue-raising measures for the 2023/24 financial year.

Kenyan youths have taken to the streets since last week in a huge campaign to urge MPs not to approve the punitive Finance Bill that proposed additional taxes and levies on individuals and businesses, but the MPs remained adamant, passing the Bill on Tuesday amid protests occurring across 35 of the 47 counties.

In Nairobi, the protests which saw day-long running battles culminated in a fast-in-history event of breaching Parliament Buildings, just moments after lawmakers had approved the contentious Bill through its Third Reading.