Friday, 30 May, 2025
Finance Committee chair- budget estimates require same scrutiny as finance bill
The Edge Convention Centre, South C
The Chairperson of the Departmental Committee on Finance and National Planning, Hon. (CPA) Francis Kuria Kimani, has stressed the importance of scrutinizing the Budget Estimates with the same, or even greater, rigor applied to the Finance Bill.
Speaking to stakeholders presenting their views on the Finance Bill 2025 and the Virtual Asset Service Providers Bill, 2025, Hon. Kimani acknowledged the critical role of examining the Finance Bill, which outlines revenue-raising measures.
However, he urged stakeholders to also focus on the Budget Estimates, which the Budget and Appropriations Committee handles.
“I want to encourage you to also spend some time to review the Budget Estimates whenever the Budget and Appropriations Committee calls for public hearings. This is because your calls for prudent appropriation of public resources ought to start from our country’s spending wish-list. Here, we are responsible for raising revenues to fund the Budget,” he explained.
The Molo lawmaker observed that while both the Finance Committee and the Budget and Appropriations Committee were conducting public hearings simultaneously, few stakeholders had shown interest in the Budget Estimates, instead focusing primarily on proposed revenue measures.
Hon. Kimani’s remarks came in response to calls for austerity measures from stakeholders like Amnesty International and the Okoa Uchumi Coalition, who shared their general budget views during the public hearings for the two Bills.
Mr. Irungu Houghton, Executive Director of Amnesty International, highlighted concerns about Kenya's debt.
“Kenya's debt repayments are the largest budget item, projected at KES 996 billion in FY 2024/25, which limits funds for essential public services. There has been a 335% increase in debt since 2014, posing a threat to economic stability and human rights,” Mr. Irungu noted.
Amnesty International Kenya further called for rights-compliant tax measures that protect Kenyans from inequity and discrimination while maximizing resources for human rights realization.
“Amnesty International Kenya urges the government to avoid retrogressive tax measures that disproportionately affect vulnerable and marginalized populations,” Mr. Irungu added.
The Okoa Uchumi Coalition, a collective body of over 60 civil society organizations, submitted that Kenya faces escalating public debt driven by excessive borrowing for recurrent expenditure, unrealistic revenue targets, and misallocated spending priorities.
“The current debt levels and pending bills pose a threat to fiscal sustainability and economic stability. OUC advocates for expenditure consolidation rather than increased taxation, as Kenya's fiscal challenges stem primarily from poor expenditure management,” the Coalition’s Convenor, Diana Gichengo, told the Committee through a representative.
A majority of stakeholders who made submissions also urged the Committee to align revenue-raising measures with the National Tax Policy and the Medium Term Revenue Strategy (MTRS) to promote a predictable business environment.
They argued that frequent changes in tax policies could discourage investment, especially from foreign firms, and lead to capital flight due to an unpredictable business environment.
Stakeholders further proposed the amendment of the Third Schedule of the Income Tax Act to cap the highest Pay As You Earn (PAYE) tax band at 30%. They argued that higher tax bands lead to employees reverting to consultancy, negatively impact MSMEs funded by high-income earners, reduce disposable income, and could lead to tax avoidance and hinder global competitivenes
Underscoring the importance of public participation in legislative processes, Hon. Kimani pledged that the Committee would carefully consider all proposals.
“I want to assure you that this is not an exercise in futility. We know the role this exercise plays in enriching legislation. We will consider all the views presented to us and even capture their responses in our report to the House,” he pledged.
The Finance Committee is set to conclude stakeholder engagements and will commence public hearings in 10 counties tomorrow before breaking for Madaraka Day. Hearings in Nandi, Migori, Trans-Nzoia, Busia, Kiambu, Machakos, Kwale, Kilifi and Mombasa counties will then resume from Tuesday until Friday next week.