Wetangula

Kenyans have been questioning the move by the President to reject the Finance Bill 2024 after the country witnessed massive demonstrations against the bill.

The speaker of the National Assembly has explained the basic applicable procedure and consequences of rejection of the Finance Bill.

The Constitution empowers the President to refer back a Bill to Parliament for reconsideration in accordance with Article 115.

The President’s Memorandum recommended the deletion of all the sixty-nine (69) clauses of the Finance Bill 2024.

The effect of approval of the President’s reservation and recommendations by the National Assembly is that the Bill will be ‘LOST’.

However, the Bill can be revived following the provisions of Artice 115(4)(a) of the Constitution.

“Any Member intending to negate the President’s reservations/veto or revive any of the sixty-nine (69) Clauses of the Bill is required to marshal the votes of at least two-thirds of the Members of the National Assembly, being 233 Members.”

“What is the next course of action?

-Upon receipt of the President’s Memorandum, the Speaker of the National Assembly is required to refer the Memorandum to the Departmental Committee on Finance and National Planning.

-The Memorandum has since been referred by the Speaker to the Committee for consideration and reporting to the National Assembly when it next sits.

-In the event the Committee fails to report to the House at its next sitting, the House shall proceed and consider the Memorandum at Committee of the Whole House upon resumption from recess.”

National Assembly Standing Orders requires the Speaker to communicate the Presidential message at a time when the House is not in session. He then, will report the Message to the House on the day it sits next (Tuesday, 23rd July 2024).

Answering the question of if the Finance Bill can become law by effluxion of time as many people think, he said it will not.

“Emphatically, No! Having been referred back to the National Assembly for reconsideration on account of the President’s reservations, the Finance Bill, 2024 cannot become law through mere lapse of time.”

Consequently, the rejection of the entire Finance Bill shall have its implication to the financial year 2024-2025.

“A financing gap of approximately Kshs. 300 Billion between the expenditure approved by the National Assembly through the Appropriation Bill, 2024 and the projected revenues that may be raised from the existing tax measures.”

Through applicable procedures, the financing gap may be bridged by enacting a Supplementary Appropriation Bill.

The next Financial Year commences from 1st July 2024. “The instrument which authorizes the withdrawal of monies from the Consolidated Fund for utilization by the national government is the Appropriation Bill, which is distinct from the Finance Bill.”

Also Read: “Msaliti Nani? I Will Still Be MP Even After Supporting Finance Bill” KRG Vows

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