CS Mbadi hints at gov’t bringing back rejected Finance Bill 2024 proposals

While acknowledging that the bill was shot down and is considered ‘dead,’ Mbadi stated that certain clauses, such as imposing an excise duty on imported sugar, are valuable to the country and should be reviewed and possibly amended.

Speaking in an interview on Citizen TV’s Tonight Show on Thursday, Mbadi emphasized that the government would proceed cautiously in its considerations. He noted that there are already established plans for revenue collection.

“There is no emergency. We have a legal framework in place to collect our taxes. We must find a way to reintroduce certain progressive elements from the Finance Bill 2024 in a manner that promotes growth and streamlines tax administration,” Mbadi said.

“We don’t have strict timelines. Legislation is a continuous process. We may not even introduce all these measures in a single bill. Some proposals might be more relevant to trade and industry and could be brought up under those specific sectors.”

The former MP defended some of the proposals in the Finance Bill, such as an increase of excise duty on sugar imports from Ksh.5 to Ksh.7.5 per kg, stating that they were designed to support local farmers.

“There were provisions in the Finance Bill 2024 that were progressive. For instance, why would one reject an amendment to increase excise duty on imported sugar from Ksh.5 to Ksh.7.5 per kg to protect our sugar industry, just because it was in the Finance Bill 2024? Those are progressive provisions in the law,” Mbadi argued.

However, Mbadi clarified, “The Eco Levy is not one of the things we are considering bringing back. We are not reviving the Finance Bill 2024; it is buried and withdrawn.”

He added, “Kenyans are obsessed with this omnibus Finance Bill every year. The Finance Bill 2024 failed, and you cannot resuscitate it. It is a dead horse.”

Mbadi's remarks come weeks after he hinted at possibly reinstating some of the clauses contained in the withdrawn Finance Bill 2024.

After taking over office from the outgoing Cabinet Secretary, Njuguna Ndung'u, Mbadi noted the need to uphold a robust tax expenditure system to foster national development, adding that some clauses in the contentious bill sought to address the deeply-rooted expenditure challenges the country has been facing.

"There are provisions in that bill that would have helped the country to grow," he said. "One area is the issue of tax expenditure, which is leading to tax leakage. A lot of the tax refund claims are fictitious, and we know it—they’ve been around for a while."