John Mbadi, the nominated Cabinet Secretary for the National Treasury, has addressed concerns about Kenya’s economic stability following the withdrawal of the Finance Bill 2024.
During his appearance before the National Assembly’s Committee on Appointments on Saturday, August 3, Mbadi provided insights into why the bill’s rejection by President William Ruto would not create a legislative vacuum.
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Mbadi explained that finance bills typically serve to enhance existing financial laws rather than establish entirely new frameworks. He elaborated on the specific areas these bills usually cover:
“We don’t have a lacuna. In fact, a Finance Bill is an omnibus Amendment Bill; we have about five or six legislations that the Finance Bill usually amends we have Excise Duty, Import Duty, Value Added Tax, Income Tax, Tax Procedures Act, and fees and levies. These are specific legislations. This House, if I’m approved, should help me to bring these legislations directly, touching on these specific statues. We don’t have to have a Finance Bill, but I’ll seek guidance from the Attorney General.”
Alternative Budget
The Treasury nominee outlined strategies for implementing beneficial provisions from the withdrawn bill. He suggested that these could be reintroduced through alternative budget-making processes or incorporated into existing laws via parliamentary amendments. Mbadi emphasized the importance of maintaining public calm by saying,
“Let us stop making Kenyans panic. In the 10th and 11th parliaments, the finance bill used to be passed in September. We used to have three months into the financial year to pass the finance bill.”
Mbadi’s vision for the Treasury, if approved, involves simplifying tax systems to broaden the tax base and increase revenue without introducing new taxes. He also suggested moving from dependence on agriculture to manufacturing:
He suggested enhancement of revenue collection by the KRA to improve government revenue that would reduce dependence on loans. He said
“The solution is proper revenue collection targeted by KRA. KRA needs reengineering especially custom duties where we lose a lot through smuggling…there was a time when KRA had a great training programme which worked very well and prepared KRA officials for work. You must have properly trained accountants to collect tax.”
He aims to succeed Njuguna Ndung’u, who was dismissed from the position in July after serving for approximately 20 months.
Ksh380 Million Wealth
Mbadi, a long-serving politician with an impressive track record in the National Assembly, declared his wealth at Ksh380 million.
He is one of five prominent figures from the opposition Orange Democratic Movement (ODM) party that President Ruto has appointed to Cabinet positions.
This move includes former ODM deputy party leaders Hassan Joho and Wycliffe Oparanya, as well as other key party officials, signaling a significant political realignment.
