Ruto Declines Assent, Returns Tax Hikes Finance Bill To Parliament For Reconsideration ~ OsazuwaAkonedo
Ruto Declines Assent, Returns Tax Hikes Finance Bill To Parliament For Reconsideration ~ OsazuwaAkonedo #Kenya #Nairobi #Protest #Ruto #Tax #Williams Kenya President, William Ruto Has Returned The 2024 Finance Bill To The National Assembly For Reconsideration. https://osazuwaakonedo.news/ruto-declines-assent-returns-tax-hikes-finance-bill-to-parliament-for-reconsideration/26/06/2024/ #Breaking News Published: June 26th, 2024 Reshared: June 26, 2024 9:07 pm
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00:00Kenya President, William Ruto has returned the 2024 Finance Bill to the National Assembly for reconsideration.
00:06This was revealed in a letter signed by President Ruto and Red Amabu on the President's social media handles on Wednesday evening.
00:12They uttered several protesters were shot dead when they ran into the podium and building in attempt to stop the lawmakers from passing the proposed tax hike finance bill.
00:19President Ruto in a nationwide broadcast has said that the intended tax law aimed to generate billions of revenue to finance and address debt burden on the country and create jobs opportunities for the youths.
00:28According to Ruto, the Finance Bill would have enabled him establish ICT centers in all the wards in Kenya.
00:34The letter reads in quote, whereas a bill titled, an act of parliament to amend the law relating to various taxes and duties and for connected purposes,
00:41the short title of which is the Finance Bill 2024 was passed by the National Assembly on the 25th of June 2024.
00:48And whereas the Finance Bill 2024 was presented to me for presidential assent in accordance with the provisions of the Constitution on the 26th day of the month.
00:57Of June in the year 2024, taking into consideration of the widespread expression of dissatisfaction by members of the public on the contents of the Finance Bill 2024.
01:06Now, therefore, in exercise of the powers conferred to me by Article 115.1XB of the Constitution and having reservations on the contents of the bill in its entirety,
01:16I 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 the clauses thereof.
01:25President Ruto in a meeting with religious leaders at the State House in Nairobi on Wednesday said,
01:30we commend our youth for exercising their constitutional rights to be involved in the affairs of their country.
01:34Unfortunately, criminals often hijack such initiatives, engaging in violence and destruction of property.
01:40This should not silence their voices.
01:42Moving forward, we will engage the youth and other stakeholders as part of a multisectoral effort to find solutions to issues of national concern.
01:49At State House Kenya, Nairobi, I met religious leaders drawn from the National Council of Churches of Kenya, Kenya Coalition of Church and Ministries, and Evangelical Alliance of Kenya.
01:59We have reported that Kenyan Medical Association has confirmed that more people are still being treated with serious gunshot injuries with 13 of them already pronounced dead.
02:07Simon Kigundu, President of the Kenyan Medical Association, said that the figure of 13 deaths was not the final number.
02:14Recent video on Wednesday showed moments some of the protestors were being helped and some still running with one of their hands on their buttocks seemingly trying to ease themselves of the pains of the bullets.
02:22The video also showed that some of the protestors were shot on their buttocks with sounds of gunfire heard repeatedly in quick succession in a war-like situation.
02:29Crowd of protestors ran into the Parliamentary Building in Nairobi, Kenya on Tuesday trying to stop the members of Parliament from passing the controversial Finance Bill 2024 into law.
02:39The lawmakers went ahead and passed the bill on Tuesday and presented it to President William Ruto to sign it into law.
02:44The bill is yet to be signed into law as agreed Kenyans continue with the protest against the Finance Bill 2024 aimed to increase taxes in the country.
02:52The Parliament passed the bill and escaped the anger of the protestors through underground tunnel after 195 members of the Parliament voted in favour for the bill and 106 voted against the bill, with 3 of the total votes spoilt, according to eyewitnesses.
03:04For weeks, a lot of Kenyans took to the streets and called for the stoppage of the bill with hashtags, Reject Finance Bill, protests in Nairobi and other towns all over the country.
03:13A section of the Parliament building was also set ablaze on Tuesday by the protestors who appeared to be mostly young people in their youthful age, according to videos posted online by eyewitnesses.
03:22Kenyan activist Omar Obama, the half-sister of former US President Barack Obama, was among those tear-gassed during the protests outside the Parliament building in Nairobi.
03:31Police opened fire on demonstrators trying to storm the legislature, resulting in at least 13 deaths, dozens of injuries, and sections of the Parliament building being set ablaze as lawmakers passed a tax-raising bill.
03:42Omar Obama, interviewed by CNN, expressed her support for the young Kenyans demonstrating for their rights amidst the chaos.
03:48Angry crowds broke through police lines to storm Parliament in the capital Nairobi before setting parts of it ablaze, according to Ruta's international news agency.
03:56In an address on Tuesday evening, President William Ruta said all means will be deployed to thwart any attempts by dangerous criminals to undermine the security and stability of our country after he had deployed the military to quell the protests.
04:08There have also been unverified social media reports of dozens of people being shot dead by security officers overnight, as well as reports of deaths in other areas around the country where there were protests, according to local reports from Nairobi.
04:19Unconfirmed reports indicated that the ceremonial mass, symbolizing the authority of the legislature, was stolen after the protesters broke into the Parliament building, setting parts of it ablaze before firefighters arrived and descalated the inferno.
04:30Former President Homuru Kenyatta urged dialogue, saying Kenya's leaders should know that power and authority is donated to them by the people.
04:37Parts of Ruta's report raised in cold dust. Police opened fire on demonstrators trying to storm Kenya's legislature on Tuesday, with protesters killed. Dozens wounded and sections of the Parliament building set ablaze as lawmakers inside passed legislation to raise taxes.
04:51In chaotic scenes, protesters overwhelmed police and chased them away in an attempt to storm the Parliament compound, with Citizen TV reporting protesters had managed to enter the Senate chamber earlier in the day.
05:01Police opened fire after tear gas and water cannons fell to disperse the crowds. A Ruta's journalist counted the bodies of at least five protesters outside Parliament. A paramedic, Vivian Achister, said at least 10 had been shot dead. Another paramedic, Richard Amumu, said more than 50 people had been wounded by gunfire. He was leading two injured protesters into an ambulance outside Parliament.
05:23Police eventually managed to drive the protesters from the building amid clouds of tear gas and the sound of gunfire. The lawmakers were evacuated through underground tunnels, local media reported. Internet services across the country also experienced severe disruptions during the police crackdown, Internet Monitor Network said. Kenya's leading network operator, Safaricom, said two undersea cables were out of action, causing the outages.
05:44Protests and clashes also took place in several other cities and towns across the country, with many calling for President William Ruto to quit office as well as voicing their opposition to the tax rises. Parliament approved the Finance Bill, moving it through to a third reading by lawmakers. The next step is for the legislation to be sent to the President for signing. He can send it back to Parliament if he has any objections.
06:04The Finance Bill aims to raise an additional $2.7 billion in taxes as part of an effort to lighten the heavy debt load, with interest payments alone consuming 37% of annual revenue. Opposition leader, Rella Olinga, called for the Finance Bill to be immediately and unconditionally withdrawn to make way for dialogue.
06:22I am distraught at the murders, arrests, detentions and surveillance being perpetrated by police envoys and girls who are only seeking to be held over taxation policies that are stealing both their present and future, he said in a statement. Tuesday's protests began in a festival-like atmosphere but as clouds swelled, police fired tear gas in Naioli's central business district and the poor neighborhood of Kibera. Protesters ducked for cover and threw stones at police lines. People clambered over police vehicles stalled in the downtown streets.
06:48Police also fired tear gas in Eldoret, Ruto's hometown in western Kenya, where crowds of protesters filled the streets and many businesses were closed for fear of violence. Clashes also broke out in the coastal city of Mombasa and demonstrations took place in Kisumu, on Lake Victoria, and Garissa in eastern Kenya, where police blocked the main road to Somalia's port of Kismayu. In Nairobi, people chanted, Ruto must go, and crowds sang in Swahili, all can be possible without Ruto.
07:14Meanwhile, the United Nations Secretary-General, Antonio Guterres, has urged the Kenyan authorities to exercise restraint while dealing with citizens protesting over the finance bill. He also called on Kenyans to demonstrate peacefully to avoid confrontations with police officers.
07:34I am deeply saddened by the reports of deaths and injuries, including of journalists and medical personnel, connected to protests and street demonstrations in Kenya. I urge the Kenyan authorities to exercise restraint and call for all demonstrations to take place peacefully, stated Guterres. His statement emerged after several people were killed when protesters stormed parliament buildings on Tuesday.
07:54Foreign Ministry of Uganda government issued a statement from Kampala in Uganda on 26 June 2024, stating that the newly renovated Uganda House was among the properties destroyed by the angry protesters on Tuesday. In a statement signed by the Permanent Secretary of the Uganda Foreign Ministry, Magaya Vincentwezwa, the government of Uganda thanked the Kenya Fire Department for their quick response in putting out the fire. Magaya also stated in a press statement that none of the diplomatic or consular staff were in the building as at the time the protesters set the Uganda House ablaze.
08:22Adding that, the diplomatic relationship between the republics of Kenya and Uganda remained solid. In the wake of protests in Kenya, on June 25, 2024, the protesters abandoned the principle of peaceful demonstrations and took the path of destruction of properties wherein the newly refurbished Uganda House, a commercial building located on Kenyatta Avenue in the Nyoli Central Business District, was vandalized and set ablaze, the Uganda Foreign Ministry said.
08:52When I assumed office 20 months ago, our country was facing tremendous economic challenges. Escalating cost of essential household commodities, high fuel prices, rapid depreciation of the Kenya shilling, and spiraling public debt were threatening to ground our economy.
09:20My administration has worked hard and consistently so that today the prices of essential commodities like unga have dropped from 240 shillings for a 2 kilogram packet to Kenya shillings 100, majorly attributed to our fertilizer subsidy program, the resilience of our farmers, and good rains that were given to us by God.
09:48During the period, we reduced the price of fertilizer also from 7,500 to 2,500. Petrol prices have come down from a high of 217 to now 187 a liter. The shilling has strengthened against the dollar from a high of 165 to now 127, 128.
10:17We have made significant progress in pulling the nation back from the brink of debt distress. Our debt situation is better managed and our budget now has space for investment and in programs aimed at easing the hardship on vulnerable people and creating opportunities for our young people.
10:42Our GDP grew by 5.6 percent last year, ranking Kenya among the 27 fastest growing economies in the world. Our inflation figures have fallen from a high of 9 and 8 in May last year to 5 percent in April this year.
11:08It is instructive for the nation to know that for every 100 shillings we collect as taxes, we spend 61 shillings in debt service.
11:24We have paid Kenya's Eurobond debt that was borrowed in 2014 of $2 billion that has been hanging around our neck. We paid the last installment of $500 million last week.
11:46Today, Kenya's debt burden is much less, more sustainable, and we are on course to redeem our country from the discomfort of debt and assert our sovereignty.
12:03Earlier this year, Treasury had proposed a budget of $4.18 trillion. I did direct that it be reduced by $200 billion to come down to $303.99 trillion.
12:21The Finance Bill 2024 generated to actualize this budget underwent public participation, which resulted to concessions by which we agreed to drop proposals on VAT on bread, motor vehicle circulation tax, VAT on locally manufactured diapers and sanitary pads, as well as excise duty on money transfer services, among others.
12:52The additional tax measures we had proposed in this year's Finance Bill were to raise money in the tune of $346 billion.
13:06When the concessions were made subsequent to public participation that was undertaken by Parliament, that came down to $200 billion.
13:21I had made this proposal taking into account our situation and the priorities that are there. I want to thank the members of Parliament seated behind me and those who voted yes for identifying the priority areas of our nation.
13:50Because when I made the proposals to Parliament with my Cabinet, we had certain critical priorities for the nation.
14:04Number one is our agriculture. We did make recommendations and part of the money we were going to raise from the Finance Bill was $10 billion that would go to fertilizer subsidy,
14:24$18 billion that would go to making sure that junior secondary school teachers, 46,000 of them, would be confirmed on a permanent and pensionable basis.
14:50We are very clear in our minds that education being the greatest equalizer, no child in Kenya should go to a school where there is no teacher or where there are no adequate teachers.
15:10It is because of that reason that in this Finance Bill also we had committed to hire an extra 20,000 teachers.
15:24We also had envisioned, because of the program of last mile connectivity to homes, especially in rural areas, we had committed $14.5 billion shillings, $50 million for every constituency for the last mile connectivity.
15:51Because we realize that there are many people who today cannot go to hospital because they cannot afford, because they have no health insurance,
16:08we had committed $6 billion shillings to operationalize our universal health coverage plan that would make it possible for every citizen to have health insurance, those who cannot afford to be paid for by the government of Kenya,
16:30and to also operationalize the chronic illness fund that would make it possible for those who suffer from cancer, diabetes, hypertension, to be able to go to hospital, be treated, and go home without being asked for any money.
16:53We also had planned to put in money for our coffee farmers to retire the heavy debts that are bedeviling our coffee farmers.
17:09We also had allocated money for our sugar cane farmers to make sure that our sugar cane farmers get out of the debts that they're in.
17:24We had also committed to our milk farmers $2 billion shillings to make sure that every farmer is paid a minimum of $50 shillings per liter to make sure that these farmers, very hardworking citizens of our nation, get a fair return for their hard work and for feeding our nation.
17:54And that is why I commend these members of parliament for agreeing with us that all the priority areas I have mentioned were the right priorities to be funded.
18:13And by so doing, they supported the proposal to incorporate also the views of the people.
18:23These members of parliament came back to us after they went to listen to the people of Kenya, and they came back and reduced the budget on their own to buy $146 billion shillings.
18:41Notwithstanding all these concessions, it has become evident that members of the public still insist on the need for us to make more concessions.
18:57And because I run a government, but I also lead people, and the people have spoken, I am grateful to all the members of the National Assembly who voted yesterday affirmatively for the Finance Bill 2024 as amended on the floor of the House.
19:26And following the passage of the bill, the country witnessed widespread expression of dissatisfaction with the bill as passed, regrettably resulting in the loss of life, destruction of property, and desegregation of constitutional institutions.
19:51On my own behalf, and on behalf of these members and many other Kenyans, I send my condolences to the families of those who lost their loved ones in this very unfortunate manner.
20:07Consequently, having reflected on the continuing conversation around the content of the Finance Bill 2024, and listening keenly to the people of Kenya who have said loudly that they want nothing to do with this Finance Bill 2024, I concede.
20:34And therefore, I will not sign the 2024 Finance Bill, and it shall subsequently be withdrawn, and I have agreed with these members that that becomes our collective position.
21:05Accordingly, there is need for us as a nation to pick up from here and go into the future.
21:19And I am therefore proposing that because we have gotten rid of the Finance Bill 2024, it is necessary for us to have a conversation as a nation going forward.
21:38How do we manage the affairs of the country? Together.
21:45How do we manage our debt situation? Together.
21:50How do we work on the budget with the deficits that now exist? Together.
21:58And as I committed last Sunday, I will be proposing an engagement with the young people of our nation, our sons and daughters.
22:16For us to listen to them, as I said on Sunday, listen to their views, listen to their proposals, their ideas, their concerns, and what they think we should do better as we go forward.
22:36I am also recommending a multi-sectoral, bipartisan, multi-stakeholder engagement from civil society, religious organizations, professional bodies, for us as a nation to speak to the future of our country.
23:06Again, together.
23:10And this will be on matters that are contained in the Bill and matters that the people of Kenya have canvassed in the conversation that has been going on.
23:23In this regard as well, I am directing for immediate further austerity measures to reduce expenditure, starting with the office of the president, the entire presidency, and extending to the entire executive arm of government.
23:54Operational expenditure in the presidency be reduced to remove allocations for the confidential vote, reduce travel, hospitality, purchase of motor vehicles, renovations, and other expenditures.
24:14This will cover the entire presidency and also the executive arm of government.
24:25I also propose that equally, parliament, the judiciary, and county governments working with the national treasury also undertake budget cuts and austerity to ensure that we do live within our means, respecting the very loud message that is coming from the people of Kenya.
24:55And let me confirm that I have discussed with many stakeholders, I will be meeting some of them shortly after this meeting, on charting a way forward that makes sure that we carry the whole nation
25:25in this very important journey as we go into the future as a country.
25:34Let me also confirm that as we deal with austerity, the loud message on dealing firmly, decisively, and expeditiously with corruption is a matter that we have discussed and we have agreed that it will take the front banner as we go into the future.
26:04We will continue to do this and carry out this very important conversation and I want to remind us that we should proceed within the foundational principles upon which our nation is founded, namely, constitutionalism, adherence to the rule of law, and respect for constitutional institutions.
26:33We must continue to operate within the parameters of the law.
26:39I thank you.
26:41I will take a few questions, three questions to be specific.
26:50Thank you, Your Excellency, and the first question will start with Elizabeth Mutuku from TV 47.
26:56Good evening.
26:59My question is on young leaders from the Gen Z generation who were abducted yesterday and the day before yesterday.
27:12What happens to that?
27:14Second, there were young people who were killed during the demonstrations.
27:19What do you speak of that as the head of state?
27:21Thirdly, how do we move forward on the budget cuts, especially now that you've said that we're going to have austerity measures, yes, but how then do we secure development?
27:36Thank you very much.
27:40Please.
27:43No, no, it's okay.
27:45So I have said young people, six to be exact, six people yesterday lost their lives.
27:59Very unfortunately, they shouldn't have lost their lives.
28:04And I have said it is a very unfortunate situation.
28:10I wish that would not have happened.
28:15And there is a framework that will make sure that those six Kenyans who died yesterday will be accounted for.
28:28Number two, I did promise the country that there will be no extrajudicial killings going forward.
28:40And ever since I came into office, there is not one incident of extrajudicial killing.
28:50What you said about abduction are statements that were attributed to some of our civil society groups,
28:59but all the people they mentioned have since been found in police custody and those that were already processed were already released.
29:16On the matter of development that you have said, minus the finance bill,
29:24it means that some of the development programs amounting to 200 billion shillings,
29:33we will have to cut down, to delay them.
29:38They will have to wait some of them for next year.
29:42We will try next year to find some money.
29:47Some of them we will have to cancel because that's the nature of things.
29:55And it is because the people of Kenya have spoken loudly that they want a leaner budget for us as a country.
30:04Thank you.
30:08Question number two.
30:11We'll take the next question from Busara, K24.
30:34Thank you very much.
31:05About 214 Kenyans were involved in various skirmishes and many of them went to hospital.
31:1995 of them were treated and released.
31:23Some of them, I think one is still in ICU.
31:29And others, I think 14 ministers here are still in hospital.
31:36But the majority of them were treated and released yesterday.
31:42As I have told you, on those who lost their lives, there will be a mechanism of how they will be accounted for.
31:54On the young people whom you have said, how do we listen to them?
32:01Let me say the following.
32:04Number one, I did make a very clear, determined program to create opportunities for young people to work.
32:17It was in our manifesto.
32:21It is in my plan.
32:24As I talk to you, three of the programs are going on.
32:30The housing program today has 160,000 young people working.
32:40As engineers, as architects, as quantity surveyors, plumbers, masons, carpenters, artisans, transporters, accountants, we have 160,000 young people working.
33:00Because I did take the decision that if we don't deal with millions of young people out of school, out of college, who have certificates and they don't have jobs,
33:16they will soon become a very big challenge for us as a country, as we are witnessing at the moment.
33:22All the young people you see, they are looking for opportunity.
33:28They are looking for jobs.
33:31And that is why our housing program, once it is fully rolled out, we will have a minimum of half a million young people working in our housing program.
33:47Number two, I have been very clear on making sure that additional to our housing program is our digital infrastructure, the digital superhighway, the digital hubs, and the whole ecosystem of what we are doing in creating digital jobs.
34:12I was in with right there. Not more than a month and a half ago.
34:23Launching a hub that will hire 4,500 young people under CCI.
34:32In this budget, we have added 10 billion shillings to CDF for them to be able to construct ICT hubs in each ward in the Republic of Kenya.
34:48That would give opportunities for 200 to 300 young people in every ward to access internet, to be trained, to have a hub, and to monetize their digital skills.
35:08We will still find another way of implementing this plan, even if we have to cut back on CDF, if that is what is going to happen.
35:24Again, because we believe that young people deserve opportunity.
35:31As I talked to you, we just concluded three bilateral agreements, one of them with Germany, on export of labor.
35:42Because we have negotiated with many countries who are interested in the high skills of Kenyan labor.
35:53And we have an ecosystem, we now have a plan on how we are going to make sure that the young people in Kenya get opportunities to work either in Kenya or outside Kenya.
36:08In fact, just this week, this week, last week, I saw on the headlines of one of the dailies,
36:20there was a gentleman from my village, he was put on the headline.
36:26And he said he operated from where I used to operate selling chicken.
36:31That's why they put him in the headline.
36:34And his complaint was, you see, the president has not done well because in this village, many people are going to look for jobs outside Kenya.
36:52That gentleman did not know that those people in our village that have gone to Saudi Arabia or UAE, I am the one who supported the program for them to go as part of the export of labor.
37:11So he thought that those people were going away because there were no jobs in Kenya.
37:18But it is part of this plan I have kept on talking about, because I think he was called Misoyo or somebody.
37:25If you go and check the headline, I think of last week, Thursday or Friday, he was there.
37:31He didn't know, the good young man, that I think we have almost 500 or 400 and something people around that village that have actually gotten jobs outside.
37:47Kenya. And they are changing that village.
37:53And that is actually an admission by that gentleman that our plan on export of labor is working.
38:04And number two, that when we committed ourselves to making sure that we create opportunities for young people to work, we meant it.
38:17So, we have a program on housing, we have a program on digital jobs, we have a program on export of labor, we have a program on the whole manufacturing sector.
38:30Let me give you another example. I am talking this as a leader.
38:37We deliberately, last year, said we cannot continue to import products that we can manufacture in Kenya.
38:48One of them was clinker, cement, furniture, steel.
38:57What has happened the last one year?
38:59Very many, in fact five to be specific, companies have sold licenses in Kenya to do clinker, to do cement.
39:12And last year, because of what we did, we reduced the import of clinker by 95%.
39:21We saved foreign exchange, we created jobs locally.
39:26I was in Westpacot with my minister for industrialization.
39:34I'm sure the members of Westpacot, they are here, they were there with me.
39:38In Westpacot, opening a clinker factory that now hires 2,500 young Kenyans.
39:47With another almost 2,000 as drivers, support staff, big market now in Westpacot.
40:00Expanding manufacturing in Kenya is the right thing.
40:07And it is the reason why some of our policy interventions on matters like imported stuff that are being manufactured in Kenya.
40:20For example, we have said substandard low quality imported sanitary pads from China and other places.
40:32How can they come into Kenya when we have 10 companies in Kenya hiring Kenyan young people?
40:43How can they come and compete here?
40:46All the products that we are manufacturing locally, we must protect our local industries so that they create jobs locally, so that they create opportunities locally.
40:57In this finance bill, you will also see that we have imposed duty on potatoes from Europe.
41:09Surely, how can we continue importing potatoes from Europe?
41:14And we have farmers right here in Kenyanga.
41:18We have farmers right here in Nyandarwa, in Molo, in Timau.
41:27How can we justify?
41:30How can anybody take offense that we have imposed duty on imported potatoes?
41:40We have put duty on imported eggs, on imported onions, because we must protect our local farmers.
41:51Every country does that.
41:55Every country does that.
41:58I was negotiating with the Prime Minister of India because they are imposing duty on our avocados.
42:07I was in Korea negotiating with the government of Korea because they are imposing duty on our tea, on our coffee, and on our macadamia, including our avocados.
42:22Every country does that to protect their market, unless there is a mutual agreement.
42:28So these are among the things we are doing to make sure that we grow our local manufacturing.
42:35Create local jobs. Create local wealth.
42:42That is how we are going to move forward as a country.
42:45We cannot continue to be a supermarket for other people's factories.
42:51It is important that we also produce our own products.
42:56Our young people can produce products in Kenya which are of high quality, which are of international standard, and we can do that.
43:08So I just wanted to clarify this point because it is addressing the young people of our country.
43:17And I am looking forward to a conversation with my sons and daughters, the young people of this nation,
43:23to explain to them the opportunities that they have.
43:29And I want to listen to them, what additionally do they want me to do?
43:34What can we do better? And how can we move the country forward together?
43:41Thank you very much.
43:44Thank you, Your Excellency. That marks the end of the question session. Thank you very much, Your Excellency.
43:53Osaswa Thongnedo, bringing you the news in a more digital way.