Parliament’s Response to Presidential Referral
National Assembly Speaker Moses Wetangula has initiated the process to withdraw the Finance Bill 2024/25, following President William Ruto’s Memorandum of Referral. The bill faces potential abandonment, despite current parliamentary recess until July 23, 2024.
No Immediate Recall Amidst Procedural Clarity
Speaker Wetangula clarified Parliament’s stance on President Ruto’s memorandum, asserting that an immediate reconvention will not occur. Instead, the Departmental Committee on Finance and Planning will oversee the withdrawal process.
Understanding the President’s Memorandum
President Ruto’s memorandum proposes the complete deletion of all 69 clauses in the Finance Bill 2024, thereby rejecting the bill in its entirety. This move necessitates reconsideration and approval by the National Assembly.
Constitutional Implications and Revival Possibilities
Approval of the President’s recommendations by a two-thirds majority (233 members) is necessary to override the veto and revive any clauses of the bill. Failure to reach this threshold will result in the bill’s permanent rejection.
Committee’s Role in the Process
Upon receipt, the Speaker referred the President’s Memorandum to the Committee on Finance and National Planning. The Committee’s report is pivotal for further deliberation during the next sitting of the National Assembly.
Guiding Principles for Committee and House
The President’s rationale for recommending the bill’s deletion emphasizes public sentiment against it. The Committee and the House must consider this viewpoint while deliberating on the Memorandum.
Budget, Finance Bill, and Appropriation Bill
The Budget outlines national government expenditures and is translated into the Appropriation Bill. The Finance Bill introduces taxation measures to fund the Budget, potentially affecting revenue projections.
Recall Protocol and Parliamentary Schedule
Standing Order 42(3) mandates the Speaker to transmit the President’s Message to all Members when the House is not in session. With Parliament currently on recess until July 23, 2024, the Committee’s report on the Memorandum is scheduled for this date.
Implications of Rejection on Fiscal Year 2024/25
The rejection of the Finance Bill 2024 could create a significant Ksh. 300 billion financing gap between approved expenditures and projected revenues. The House may address this through potential reductions in expenditure or a Supplementary Appropriation Bill.
As Parliament awaits its scheduled reconvention, the fate of the Finance Bill 2024 remains uncertain. President Ruto’s decisive move to reject the bill calls for careful consideration by the National Assembly, balancing fiscal responsibilities with public sentiment.
