The National Assembly will review the Finance Bill 2024 next week to address President Ruto’s rejection and decide on the next steps for the bill and related financial legislation.
President Ruto informed Speaker Wetangula of his decision to reject the contentious bill on June 26, 2024, but Parliament was on break from June 25 to July 23, 2024.
Wetangula noted, “The House must consider the President’s reservations within twenty-one days when it next meets. The Departmental Committee on Finance and National Planning will present its report by July 30, 2024.”
He clarified that the bill does not automatically become law if the President misses the deadline.
“The Constitution specifies a timeline for the President’s action. It does not mean the bill automatically becomes law after the period expires,” Wetangula said.
For any part of the Finance Bill 2024 to be reinstated, at least 233 MPs must support it, as per Article 115(4) of the Constitution.
What Finance Bill Rejection Means
The rejection of the Finance Bill 2024 is expected to create a financial shortfall of about Ksh.346 billion.
Wetangula said the Division of Revenue Act, 2024, needs to be updated to ensure counties get the right funding.
“The rejection of the Finance Bill 2024 will have significant effects on the Division of Revenue Act, 2024, and the County Allocation of Revenue Bill, 2024,” he added.
The Senate will review the County Allocation of Revenue Bill, 2024. And the Budget and Appropriations Committee will propose amendments to the Division of Revenue Act, 2024, to ensure proper funding for counties and the FY 2024/25 budget.
Wetangula also reminded the House to update the FY 2024/25 Budget Estimates to fit the new fiscal plan and to cut government spending where needed.
“The Budget and Appropriations Committee is expected to table its report on the Supplementary estimates on or before June 24, 2024. The House will then review the estimates and the resulting legislation,” the Speaker said.
By Vivian K.