Busia Senator Okiya Omtatah has moved to court to block lawmakers from discussing and ratifying the taxation proposals made by President William Ruto’s government for the 2024/25 budget.

According to Omtatah and his counterpart Eliud Karanja, parliament has erred in focusing on the finance bill for the year 2024/25, before debating and approving the Appropriations Act, 2024. This goes against the laid-out procedure.

The Appropriation Act is currently in parliament. Its approval by the National Assembly is important for financing the Kenya Kwanza government’s sh3.9 trillion budget for the financial year starting in July.

The bill had its first reading in parliament on May 13th.

If the National Assembly passes the new taxation proposals, the Value Added Tax (VAT) on bread will be increased. Additionally, there will be an increase in excise taxes on M-pesa transactions, airtime, bank transfers, cigarettes, and spirits.

The Ruto government is trying to raise an additional sh 323 billion in the next financial year, starting in July.

A 16 percent VAT on bread will increase the cost of a 400g loaf by at least 10 shillings.

In the bill, there is also a proposal for introducing a 2.5 percent motor vehicle circulation tax. Here, owners of motor vehicles will cough up to ksh100,000 annually to keep driving their cars on Kenyan roads.

Jane Kagiri who Criticised Omtatah

Omtatah Getting Pushback from Ruto Loyalists

 UDA lawmakers and loyalists have not taken kindly to Omtatah going to court. Laikipia Women Rep, Jane Kagiri has accused the Busia Senator of misleading the people of Kenya on the Finance Bill.

According to Ms. Kagiri, Omtatah’s claims that the Finance Bill was introduced prematurely for debate in the National Assembly are, “patently false and misleading.”

Omtatah is Not New to Controversy

This is not the first time the activist has moved to court against the government. Three weeks ago, he was in court to end the mobile termination rates (MTR) that have been introduced by the government through the Communications Commission of Kenya.

The rates were introduced last year in November. According to Omtatah, the new rates are arbitrary and among the highest in the East African region.

Setting the new MTR charges in November, the CCK announced that the new rates will be sh0.41 per minute, a reduction from the previous sh 0.58 per minute. But according to the Busia lawmaker, the rate is still seven times over the recommended rate of sh 0.06.

MTR are the charges a telecommunication company levies on its competitors when they end their calls on its network.