Finance Bill must be in by April 30
President William Ruto has enacted the Statute Law (Miscellaneous Amendments) Bill, 2024, introducing revisions to 16 Acts of Parliament in a raft of measures that touches various sectors.
Modifications to the Public Finance Management Act primarily aims to clarify that the Cabinet Secretary for the National Treasury must submit the Finance Bill to the National Assembly by April 30, aligning with the Act, National Assembly Standing Orders, and judicial rulings.
This development signals the heightened push for the budget making process which informs how the national cake will be shared.
According to the provisions, it follows that Parliament must debate and endorse the Budget Policy Statement (BPS) by the conclusion of February. Subsequently, by April 30, the government is obliged to furnish its comprehensive proposed budget estimates to Parliament.
Simultaneously, both Parliament and the Judiciary are required to present their respective proposed budgets to Parliament by the same deadline.
Key dates for the budget
With the budget year commencing on July 1, this process is slated to take four and a half months before the onset of a new fiscal year. The statement has already been delivered to Parliament by February 15, with a mandate for public accessibility by the end of February.
Citizens seeking to contribute to the budget process from its inception, February 15 assumes significance because the government is obligated to release the Budget Policy Statement (BPS) to Parliament.
The BPS serves as a governmental declaration outlining its intentions to generate and allocate funds in the forthcoming financial year, elucidating its principal spending priorities. It does not, however, provide the detailed budget proposal with specific numerical allocations for each ministry.
During the meeting yesterday, the president also enacted an additional amendment to the Industrial Training Act which aligns the remittance date of the training levy with PAYE remittance to the Kenya Revenue Authority, with the objective of bolstering employer compliance.
Adjustment is designed to streamline KRA collections, thereby facilitating the funding of intern wages and bolstering support for technical and vocational education training, as well as higher education operations.
Value Added Tax Act has undergone an amendment to remove denatured ethanol from the list of VAT-exempt supplies.
The adjustment provides an economic safety net and a competitive advantage for local denatured ethanol manufacturers, especially millers and sugar manufacturers, who contend with challenges posed by cheaper imports.
Push for clean energy
Furthermore, the amendment exempts the supply of gas meters from VAT, aiming to improve access to clean energy for low-income households.
The Trustee (Perpetual Succession) Act, too, has been amended to assign the Registrar of Companies the responsibility for trust registration, issuing certificates of incorporation, maintaining trust registers and creating regulations. This aims to streamline trust registration procedures.
The signing ceremony was held at State House Nairobi in the presence of Deputy President Rigathi Gachagua, National Assembly Speaker Moses Wetangula and Attorney General Justin Muturi.
