Eco Levy and other key provisions to be introduced in the new finance bill amendments
National Treasury Cabinet Secretary John Mbadi has revealed plans to revive several key elements of the previously rejected Finance Bill 2024 through a new amendment proposal.
In an interview with Citizen TV on Sunday, Mbadi disclosed that out of 53 proposed amendments, 49 are set to be reintroduced after thorough discussions.
Parliament of Kenya
One of the most notable amendments is the reintroduction of the controversial Eco Levy, which the government insists is crucial for boosting the country’s economy while addressing environmental concerns.
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“They brought about 53 suggested amendments. These 53 have now been reduced to about 49,” Mbadi stated.
However, Mbadi assured that certain contentious items, such as sanitary pads, would not be subjected to the levy.
“Eco Levy has some meanings; we will just make sure that they are levied on those items which pollute the environment,” he added. “Issues that are contentious, like sanitary pads, those we will leave out.”
The initial proposal to impose a 10 percent levy on all imported goods faced strong opposition from multinational corporations, which argued that such a move would jeopardize their operations in Kenya.
Some companies even threatened to exit the country if the levy were implemented. The government’s rejection of the Finance Bill 2024, following the declaration of the 2023 Finance Bill as unconstitutional, left it in a precarious position.
In response to the rejection, President William Ruto signed the Appropriation Bill 2024, ensuring the government could continue its operations while seeking alternative funding sources.
The new amendments aim to generate Ksh150 billion to fund critical areas such as education, healthcare, and development projects without resorting to additional loans.
Despite reducing the national budget by Ksh174 billion, President Ruto announced that his administration might still need to borrow Ksh169 billion to cover budgetary shortfalls
