The National Assembly’s Departmental Committee on Finance and National Planning is expected to present its findings on President William Ruto’s rejection of the Finance Bill 2024 by July 30, 2024. This announcement follows a brief recess and a recent address by Speaker Moses Wetangula.
On June 26, 2024, President Ruto submitted a formal memorandum requesting the withdrawal of the Finance Bill 2024. This move came after the President’s verbal retraction of the Bill, raising questions about his constitutional authority to do so since Parliament had just gone into recess. Parliament is scheduled to resume regular sittings today, July 23.
National assembly speaker Moses Wetangula clarified that according to Standing Order 154 (2), the House would ordinarily have 21 days from the resumption of sittings to consider the President’s reservations. However, the Departmental Committee has not yet completed its review of the memorandum, and the report is anticipated by next week.
Addressing concerns over the Bill’s automatic enactment, Wetangula emphasized that the Constitution’s provisions are designed to guide Presidential action, not to imply automatic enactment.
Wetangula also reiterated that any attempt to reinstate clauses from the Finance Bill 2024 would require support from at least 233 MPs, in line with Article 115(4), which demands a two-thirds majority in the National Assembly.
The rejection of the Finance Bill 2024 is expected to create a significant fiscal deficit of approximately Ksh 346 billion, impacting the Division of Revenue Act, 2024, and the County Allocation of Revenue Bill, 2024. Wetangula noted that the President had previously referred the latter back to the Senate for reconsideration, stressing the need for the Senate to address this issue promptly.
Additionally, Wetangula called for amendments to the Division of Revenue Act to reflect the current economic conditions accurately. He also highlighted the urgency of the First Supplementary Estimates for FY 2024/25, aimed at realigning the budget with the revised fiscal framework. The Budget and Appropriations Committee is expected to present its report on these estimates by June 24, 2024.
As the House resumes, all eyes will be on the forthcoming report and the legislative measures required to address the fiscal challenges ahead.