Finance Bill passed this week - Report by Mzalendo blogger

By Mzalendo Blogger

5 PM to 5:30 PM

Tail end of the financial bill debate

About 50 MP's are standing around in the chamber having conversations with each other. Government side seems to have a slight advantage in numbers - 30 to the opposition's 20. Very loud conversations going on except that of government ministers. After about ten minutes of this, the Speaker shouts out "Where are the Tellers?" and the house gets back into character as MP's take their seats again.

Three MP's Kuria Kanyingi, Gor Sunguh and Njoki Ndungu begin a ceremonial march around and into the chambers, then come and bow before the speaker. They announce the results of a vote as being 25 for aye's and 25 for the nay's then bow and take their seats.

The speaker (not Kaparo) announces the result again, and adds that house rules give the house speaker a chance to break such a vote and he casts his vote with the aye's resulting in the opposition side thumping their feet in celebrations. Finance minister Amos Kimunya stands up and challenges the speaker's vote – asking if he had voted initially and if it was in order for him to vote again? The speaker replies that the rules were clear and that he was in order to break the vote. A few minutes later, he read out the relevant clause for Minister to show that he was within his right to vote (since he was not the House Speaker).

Debate on the financial bill continued.

MP Oburu Odinga got up and proposed an amendment in the bill so that a 20% increase in the cost of used spare parts be deleted, saying that many Kenyans depended on these affordable parts for their cars. Minister Kimunya stood up and said that his intention when he inserted that tax in the budget was to cut down on the dumping of those spare parts - but he has listened to the wishes of the people and he concurred that the tax should be deleted from the bill. Oburu then asked for further tax increase he mentioned on VAT for real estate be deleted from the bill, but Kimunya clarified that the clauses had already been amended by the house and were redundant.

Kimunya then asked that dates of two matters in the budget be amended as part of the bill. First that a tax on plastics to begin on October 1 and another that a tax on liquors to start effective today (October 16) – both of which were passed.

The Finance Bill, which is considered crucial before the house is dissolved for elections, was then passed and MP's then stood to give comments on the Bill. MP Wangari Maathai stood and commended MP's for their passage of the bill and especially for the tax on plastic bags since they (bags) were an environmental menace.

MP Otieno Kajwang then stood and asked that when taxes are proposed in the budget/financial bill, they be formulated to promote local entrepreneurs, not multi-nationals.

MP Jakoyo Midiwo added that he agreed with Kajwang's comments –and wanted the Finance minister to consult more with the finance committee of parliament before coming up with tax proposals. However, as he went on to describe the Finance Minister of being, arrogant and evasive, the speaker cut him off and asked him to restrain his comments – so he finished by saying that he wants the record to show that multi-nationals have continued to intimidate members of the finance committee before 'going behind their backs to cut deals with the Finance Minister'.

MP Kiema Kilonzo stood and added that Kenya needs a paradigm shift in (i) how bills are formulated to benefit local entrepreneurs and not multinationals and (2) how the finance minister handles his public relations

Finance Minister Kimunya had the final word and stood to thank MP's for passage o the bill. He described is a difficult process, adding that he had lost weight, to which some opposition MP's yelled "Farewell!"

He commended the MP's saying it was their dedication and work that enabled Kenyans to win the international award for 2nd most improved country in Africa and 8th overall in the world

Posted by Mzalendo Editor on Oct. 19, 2007

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