President William Ruto has signed the controversial Finance Bill 2023 into law, which the National Assembly passed last week.
The president assented to the Bill on Monday June 26, 2023 at State House, Nairobi.
The Bill successfully passed through Parliament after Kuria Kimani, chairman of the National Assembly Finance and National Planning Committee, presented it for the third reading.
The Finance bill signed to law by Ruto received support from a significant number of 184 MPs, primarily from Kenya Kwanza, with the exception of Githunguri MP Gathoni Wamuchomba. On the other hand, 88 MPs, mostly from Azimio, opposed the amendment.
Kenyans will need to allocate additional funds from their pockets to support the government’s first budget.
During the late-night debates on Tuesday, the National Assembly approved 87 proposed amendments to the Bill.
One of the significant approved proposals was an increase in the value-added tax on gasoline from 8% to 16%.
After amending the initial proposal, the contentious Housing levy, which initially aimed to be 3% of gross pay, was passed as a 1.5% tax.
Originally suggested as a savings account accessible after seven years, digital creators will now be subject to a 5% tax instead of the initially proposed 15%.
Betting and insurance withholding taxes will be charged at rates of 12.5% and 16%, respectively.