HTTP 200 OK
Allow: GET, POST, HEAD, OPTIONS
Content-Type: application/json
Vary: Accept
{
"count": 1585844,
"next": "https://info.mzalendo.com/api/v0.1/hansard/entries/?format=api&page=157225",
"previous": "https://info.mzalendo.com/api/v0.1/hansard/entries/?format=api&page=157223",
"results": [
{
"id": 1590432,
"url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1590432/?format=api",
"text_counter": 362,
"type": "speech",
"speaker_name": "Kesses, UDA",
"speaker_title": "Hon. Julius Rutto",
"speaker": null,
"content": " Thank you so much, Hon. Temporary Speaker. I believe the Leader of the Majority Party can confirm that the Committee is very professional and that is why the report goes beyond any reproach. I stand to second the Report Tabled by the Chairperson of the Departmental Committee on Finance and National Planning Committee, Hon. CPA Kuria Kimani, and to express our joy as a Committee. As we stand before the House, this particular Finance Bill, 2025 as it is said, is one of the best Finance Bills because it did not focus on the vertical adjustment as traditionally done, but rather, stressed on the horizontal adjustment – broadening the base of tax collection and ensuring that it makes it easy for Kenyans to participate in tax payment, unlike the complexities that were there before. Most of the Tax Acts that are in existence had a lot of duplications and complexities in terms of redundancy of some laws. If you remember, technology has changed the business world. Technology could also bring a lot of issues by complicating and duplicating what could otherwise be obtained, technically, through paperwork. For instance, the filing of tax returns as it has been done before. This particular Finance Bill serves to adjust such issues. Again, we need to remember that this particular House recently passed the National Tax Policy which has never been there before and if you look at the flow of this particular Finance Bill, it is trying to respond to the requirements of the Tax Policy by encouraging the business world in a manner that is so predictable. This will help business people to plan their businesses knowing that the tax regimes that are in place, can accommodate a certain monetary threshold, and they can plan their profits and strategies well. Looking at these particular proposals in the Finance Bill, I want to laud the Cabinet Secretary for The National Treasury and Economic Planning because most of the issues as I have said, tries to mitigate the challenges that for quite some time, have been ignored. The issue of tax expenditure as we have said. The Committee’s 2023 Report indicated that we have lost the tune of Ksh510 to Ksh560 billion. When we talk of tax expenditure, these are tax exemptions, remissions and reimbursements that we give that are claimed by the business owners, manufacturers and those who trade in the zero-rated inputs. Most of them have no clear line of transferring the final benefit to the consumer because most of this happens in the context of professional engagement; but if you look at some products and their pricing in the market, you will see the benefit. I know that most of us have recently visited our health facilities. When we access healthcare, especially those of us who are covered by insurance, the cost you see when you sign is so huge that at times you are unable to identify those benefits provided by this honourable House through the tax laws that we pass here. How do they affect the consumer? Those are the issues that we want to minimise so that, in future, we stop increasing taxes and instead, collect enough from available tools and finance our Budget accordingly."
},
{
"id": 1590433,
"url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1590433/?format=api",
"text_counter": 363,
"type": "speech",
"speaker_name": "Kesses, UDA",
"speaker_title": "Hon. Julius Rutto",
"speaker": null,
"content": "It is also important to note that we already have sufficient laws to support tax collection in this country. The challenge is in the tools and systems being used by our Kenya Revenue Authority (KRA) team. This particular Finance Bill speaks about it and encourages the Commissioner General of KRA to put in place proper systems and mechanisms. The other day, I noted that in the budget, they were asking for additional funding to improve their systems to enable them reduce on leakages, corruption and losses arising from the weak systems currently in place. If we do that, we will reduce under collection and maximise the revenue targets that we give every year without stressing Kenyans. In my view, that is the main issue that this Finance Bill is speaking about. As a Committee, we wish to invite members of the public, especially the stake holders who had the opportunity to engage with us, to read today’s Report from the Chairman. This Report reflects more than 80 per cent of what members of the public proposed on Value Added The electronic version of the Official Hansard Report is for information purposesonly. A certified version of this Report can be obtained from the Hansard Editor."
},
{
"id": 1590434,
"url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1590434/?format=api",
"text_counter": 364,
"type": "speech",
"speaker_name": "Kesses, UDA",
"speaker_title": "Hon. Julius Rutto",
"speaker": null,
"content": "Tax (VAT), Excise Duty and Income Tax during public participation. We request members of the public to give their own House, the National Assembly, time before reacting to a proposal tabled by the Cabinet Secretary. It is through the procedures of the National Assembly that laws are made. Article 118 of the Constitution of Kenya guides this honourable House to seek the views of Kenyans before legislating on any Bill before it. This is a good example that has onboarded that Article. That is why most of the clauses, such as Clause 28 of the Bill, are important. Hon. Temporary Speaker, it is just two years or less since we passed the law, Finance Act, which zero-rated most of the locally manufactured items needed by Kenyans, especially items like mobile telephones, in response to climate change mitigation. These are steps that this country and others around the world are adopting to address the challenges brought about by climate change. We passed a law to give leeway for these ones. This proposal was made to take out the advantage that had been given to the manufacturing concerns. After listening to members of the public, the Committee decided to protect them and deleted that particular proposal. Another critical issue is data protection as mentioned by the Chairman. While KRA is trying to give justification as to why they are facing challenges, there are enough laws under Section 51 of the Data Protection Act that give limited grounds on which the Commissioner General can operate. Section 6 of the Tax Procedures Act also gives limited powers to the Commissioner General to go beyond some limits to obtain the information needed, especially during assessment or when they are carrying out audit on taxpayers. However, giving a blanket leeway for them to access personal data is a question of insecurity. Most members of the public are worried about it. Therefore, as a Committee, we decided to leave out this particular clause until KRA can prove they have any other limitations beyond what the law has provided."
},
{
"id": 1590435,
"url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1590435/?format=api",
"text_counter": 365,
"type": "speech",
"speaker_name": "Kesses, UDA",
"speaker_title": "Hon. Julius Rutto",
"speaker": null,
"content": "Hon. Speaker, another issue that is coming out is the tax levied under Clause 6 of the Bill, which is trying to address the Significant Economic Presence Tax. The last Finance Act gave a threshold limitation of Ksh5 million. However, it became clear that most practitioners in this space of business are not within the boundaries of the Republic. As you are aware, non- residents do not file taxes. Therefore, the proposal to eliminate this particular threshold was welcome, so that everybody who derives income within the boundaries of Kenya would be required to pay tax despite the limits of whatever income they derive in this Republic."
},
{
"id": 1590436,
"url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1590436/?format=api",
"text_counter": 366,
"type": "speech",
"speaker_name": "Kesses, UDA",
"speaker_title": "Hon. Julius Rutto",
"speaker": null,
"content": "I support this Finance Bill. I call upon Kenyans to be patient and, for once, consume the right message that has been tabled in the House. I saw a Cabinet Secretary at a public forum the other day. A Kenyan asked whether there was a proposal to increase the VAT rate from 16 to 18 per cent. For the record, out of all the 52 Clauses, there is no mention of an adjustment to the VAT rate. But look at the information circulating out there. All the distorted information is intended to incite Kenyans, driven by a few quarters, some individuals who are enemies of economic progress. We need to call out such individuals, but also urge Kenyans to remain calm and exercise goodwill. Let them follow the procedures of the National Assembly and refer to the reports and Bills that are tabled here. These documents can be accessed through the Parliament’s website or requested through the Table Office. Even through their representatives, who are the Members of Parliament, Kenyans can obtain accurate information to enable them to understand these critical Bills and contribute meaningfully to them. With that, I second the Bill. Thank you."
},
{
"id": 1590437,
"url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1590437/?format=api",
"text_counter": 367,
"type": "scene",
"speaker_name": "",
"speaker_title": "",
"speaker": null,
"content": "(Question proposed)"
},
{
"id": 1590438,
"url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1590438/?format=api",
"text_counter": 368,
"type": "speech",
"speaker_name": "Hon. Peter Kaluma",
"speaker_title": "The Temporary Speaker",
"speaker": null,
"content": " The Leader of the Majority Party."
},
{
"id": 1590439,
"url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1590439/?format=api",
"text_counter": 369,
"type": "speech",
"speaker_name": "Kikuyu, UDA",
"speaker_title": "Hon. Kimani Ichung’wah",
"speaker": null,
"content": " Thank you, Hon. Temporary Speaker. The electronic version of the Official Hansard Report is for information purposesonly. A certified version of this Report can be obtained from the Hansard Editor."
},
{
"id": 1590440,
"url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1590440/?format=api",
"text_counter": 370,
"type": "speech",
"speaker_name": "Kikuyu, UDA",
"speaker_title": "Hon. Kimani Ichung’wah",
"speaker": null,
"content": "I rise to support this Bill in its Second Reading. Hon. Temporary Speaker, before I proceed with my remarks on the Bill, allow me to express my disappointment with the recent shooting incident. I had not seen the video earlier, but I have just watched it. It is unfortunate. As we have said before, our police officers must exercise restraint in the execution of their duties. They must remember that they are dealing with fellow human beings. We must not lose lives or limbs, even during demonstrations. Moving on, let me begin by commending the Committee, led by Hon. Kimani Kuria, and the other 14 Members, including CPA Julius Rutto, who questions whether I am aware that the Committee is professionally constituted. Hon. Julius may not know that I was already a Certified Public Accountant (CPA) when he was still in high school. I qualified as a CPA in 1999, while still a university student, long before graduating from the University of Nairobi. At that time, the Chairman of the Committee must have still been in primary school. Hon. Temporary Speaker, a lot has already been said about this Bill by the Chairman, so I will avoid repetition. However, it is important to underscore a few points. Over the past two years, the Finance Bill has been labelled a tool that punishes Kenyans through over-taxation and worsens their economic conditions. Listening to the Chairman’s presentation reminded me of the events of April last year, when a widespread campaign of disinformation and misinformation took place. This year, a similar campaign began again in April. As the Chairman noted, much negativity has been spread about the Finance Bill. Many Kenyans believe that it is designed to punish them or make them poorer. But I wish to highlight that the Finance Bill is not solely about taxation. It is also a tool for improving the lives of Kenyans. Allow me to illustrate just one provision from the Income Tax Act. For those who have taken the time to read the Report, as the Chairman pointed out, many people comment on the Finance Bill without reading it or seeking an informed interpretation. There is a proposal to increase the tax-free cash benefit, or what is commonly referred to as per diem, paid to employees in both the public and private sectors. The proposed amendment increases the tax- exempt threshold from Ksh2,000 to Ksh10,000 per night. Therefore, those who enjoy per diems when they work outside their station, including Members of Parliament, are only allowed a tax- free amount of up to Ksh2,000. Now you can enjoy a tax-free per diem of up to Ksh10,000. This means that if you are out of your station for 30 days and you are paid Ksh300,000, it will be tax-free. It is a direct benefit to employees and workers in our country. Remember, in our 2024 Bill, which was demonised with disinformation, there was a proposal which we later passed in December. But because Kenyans never paid attention, they never got to know. I have spoken about cash benefits, but regarding non-cash benefits, there are many people who work in factories, in industrial areas, who get non-cash benefits like lunch or free transport and are taxed. Last year, we elevated non-cash benefits from Ksh36,000 to Ksh60,000. Currently, one enjoys up to Ksh60,000, which is equivalent to about Khs5,000 per month. If your employer is facilitating you with company transport or lunch, up to Ksh5,000 a month is tax-free while up to Ksh300,000 or Ksh10,000 a day of per diem, is tax-free. On the Income Tax Act, a tax relief has been introduced on mortgage interest on residential home construction. Again, in our 2024 Bill, we revised a tax deduction on interest paid on purchase of a house from Ksh300,000 to Ksh360,000. That fell with the Finance Bill of 2024. When we did the tax amendment laws in December, to the benefit of Kenyans, we reintroduced that particular provision, and today, Kenyans can enjoy tax reliefs of up to Ksh360,000, up from Ksh300,000, on mortgage interest. That means you do not pay tax or you can claim tax against every Ksh30,000 you pay as interest on your mortgage. I can see Hon. Kwenya nodding because I know he is enjoying a mortgage from the National Assembly that he is paying heavily. Members of Parliament and many other Kenyans who choose to take a mortgage facility to construct their own house The electronic version of the Official Hansard Report is for information purposesonly. A certified version of this Report can be obtained from the Hansard Editor."
},
{
"id": 1590441,
"url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1590441/?format=api",
"text_counter": 371,
"type": "speech",
"speaker_name": "Kikuyu, UDA",
"speaker_title": "Hon. Kimani Ichung’wah",
"speaker": null,
"content": "instead of buying a constructed unit, will enjoy the same benefit of up to Ksh30,000 per month or Ksh360,000 a year. Therefore, Kenyans who are borrowing mortgage facilities from their Savings and Credit Cooperatives (SACCOs), banks and mortgage finance companies will now benefit from this, including us. When I took my mortgage in this current Parliament, I did not buy a house. I sought to renovate an existing house and I have been paying a heavy interest of up to about Ksh180,000 a month. I can now get up to Ksh360,000 a year tax-free. Hon. Temporary Speaker, if you look at other provisions on Pay As You Earn (PAYE), many Kenyans have been overtaxed, largely on account of their employers not allowing them to claim all the deductible expenses ahead of PAYE deductions. This Bill, in one of the Clauses, is now making it mandatory for employers to correctly apply all the deductions that may occasion such over taxation. Therefore, employees will not have to wait until the end of June or in the course of June, when filling their tax returns, to claim tax refunds from the Kenya Revenue Authority (KRA). Now, that will be checked by this particular provision that allows all deductions, exemptions and tax reliefs that were previously unclaimed, to be claimed ahead of paying PAYE. This will not only ease the tax burden but also reduce the workload on Kenyans. Another important aspect is the advance pricing agreements contained in this Bill relating to multinationals operating in the country or that have permanent establishments in Kenya. You can now have an advance pricing agreement between a multinational and its subsidiary, if that multinational is operating in Kenya, to create certainty. Certified Public Accountants (CPAs) will tell you that one of the cardinal principles of taxation is certainty. Multinationals will know at what pricing levels they are able to claim losses for its subsidiary in or outside the country. Many businesses are allowed to carry on their losses. When you make a loss up to five years, you are allowed to carry forward a loss against future taxes. The Bill had proposed to limit this to a five-year period, so that at the end of five years you are stopped from claiming losses against your tax obligations. As the Chair has said, the Committee listened to Kenyans. This is important because Kenyans were asking last year: “Do parliamentarians ever listen to us?” We were accused of not listening. It is actually Kenyans that were not listening to Parliament. Because last year, when the Bill came to this House, the Chair went through the rigorous process he has gone through today on public participation and proposed amendments to the Bill. He has just said that this particular provision is one of the provisions that elicited a lot of reactions from Kenyans through public participation. I must commend the Committee because they did not just do public participation in Nairobi; they went to other counties. From their Report, they went to Kwale, Migori, Nandi, Busia, Trans Nzoia, Mombasa and Kilifi Counties in addition to the public participation they conducted in Nairobi. Across these counties, one of the provisions that elicited a lot of reactions from Kenyans was the provision to stop Kenyans from carrying forward losses. The Committee, in cognisance of the issues that were raised by Kenyans, again like last year, is proposing that we amend and allow losses, on application, to be carried forward beyond the five years. If you set up a business today and make losses for five years, and the sixth year you think you still qualify to claim the losses against future tax obligations, on application to the Cabinet Secretary for the National Treasury, you will be allowed a further period of five years. That is to check the abuse of that process. There are people who make profits but use tax avoidance measures to claim losses into perpetuity. Therefore, the capping of five years can be extended."
}
]
}