Busia Senator Okiya Omtatah has poked holes in the Finance Bill 2023, saying several clauses in the proposed law contravene the constitution.

Speaking at a service attended by President William Ruto in Busia Stadium on Sunday, May 28, 2023, the renowned human rights activist took the President head-on over the proposed mandatory 3% housing levy.

Without mincing his words, Omtatah said he would challenge in court the levy and other proposals in the Bill seeking to introduce more taxes on Kenyans if it’s not reviewed.

“President Ruto you are my friend but the law is supreme. I’ve read the Finance Bill 2023 and the Bill contravenes at least six sections of the constitution. I urge your team to respect the constitution and drop the clauses because if they don’t we will fight in court,” Omtatah warned.

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“There is nothing to complain about but there is everything to fight for. But let us avoid that fight. Let people not fool you here. Let people not deceive you. There are issues in that Bill that even the Supreme Court has pronounced itself on that need to be honoured. Like the housing levy, it was in the other Bill I challenged it and it was made voluntary. Do you want me to return to court?” he posed.

Omtatah said he had already prepared a petition to challenge the Bill in court but postponed its filing last week after learning about the President’s visit.

He urged the President to “make things easier” for leaders in the opposition to support his government.

“When I wake up in the morning, among the intercessions I make I pray for you as the President of Kenya to succeed because if you succeed Kenya is better off for everyone but you if you fail we all fail,” he added.

“I pray that we look at this Bill if we can avoid having to go and fight in court we avoid. But if people are coming here to say everything is okay we will fight in court next week.”

President Ruto has in recent weeks defended the housing levy saying Kenyans stand to benefit from affordable housing. He also insists that the Housing Fund will create employment opportunities for jobless youths.

Opposition legislators have already declared their intention to oppose the Finance Bill 2023 which is currently in the public participation stage.

The proposed law seeks to compel employers and their employees to contribute 3% of their wages to the housing scheme.

Azimio la Umoja – One Kenya coalition leader Raila on Friday said the proposed 3 per cent housing levy is unsustainable and should be shelved.

Speaking during a prayer meeting at Wiper party leader Kalonzo Musyoka’s farm in Yatta on Friday, May 26, the opposition chief accused President Ruto’s administration of overburdening the taxpayer.

Raila noted that the government was wrong to introduce the levy when the country is struggling economically.

University students have declared support their for President William Ruto’s taxation plans, which have been opposed by other sectors of the economy.

The Kenya Universities Students Association said the controversial Finance Bill, 2023 will go a long way in addressing accommodation challenges for members aside from creating job opportunities for the youth.

The President of the association Anthony Manyara said the proposed housing levy will address accommodation shortage in institutions of higher learning.

“We will be making a proposal to the President on how the student accommodation can be made part of his affordable housing plan,” he stated.

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Manyara said the housing levy proposal has been successful in several countries.

“It is not blind loyalty to the government. MPs have mortgage. It would be very hypocritical of them not to help ordinary Kenyans to own houses,” he added.

He called on Kenyans to support Ruto with the plan, and hold him to account if he mismanages the programme.

Samuel Oloo, the chairman of Mutarakwa Harmony Cooperative, said the housing levy gives workers in housing and construction industry a lifeline.

“There will be a lot of job opportunities for people in the construction industry when building of these houses begin,” Oloo said.

Mutarakwa is a cooperative bringing together youth in the construction industry.

Oloo and Manyara made the remarks during public hearings on the Finance Bill, 2023, which entered day seven on Sunday.

The sittings by National Assembly’s Departmental Committee on Finance were held at Hilton Garden Inn, Mombasa Road.

Committee chair Kuria Kimani noted that accommodation was one of areas students wanted addressed.

“Students have pointed out that one of the things that is making university education unaffordable is accommodation. Students have been competing with salaried people for houses,” he said.

Kimani said his committee has received submissions from stakeholders who want the Bill passed as well as those who want it to be amended first.

Parliament is in receipt of hundreds of petitions from members of the public who are opposed to President William Ruto’s taxation plan.

Proposals that have attracted the highest number of opposition include raising VAT on petroleum from eight to 16 per cent, proposed housing levy pegged at three per cent of basic salary as well as increase of income tax to 35 per cent for those earning 500,000 and above.

Workers’ unions have decried implementation of the planned tax regimes and urged Parliament to reject proposed amendments in the Finance Bill, 2023.

The Kenya Universities Staff Union secretary general Charles Mukhwaya said once passed, the Bill will see total deductions from employees’ monthly earnings shoot up to 52 per cent.

Mukhwaya said already as is, the statutory deductions are overburdening workers.

These include NHIF, NSSF, PAYE and Housing Fund levy among others.

Opposition coalition Azimio has termed the Finance Bill 2023 proposed by the Ruto administration as a piece of punishment for Kenyans.

Azimio has accused Kenya Kwanza administration of turning against its promises to the common Kenyans of lessening the burdens of living by proposing tax increments.

The Opposition has promised to mobilise its MPs to shoot down the Bill, but expressed fears that the government could ‘buy’ opposition MPs to pass the Bill.

Kenya Kwanza government has vowed to go ahead with the enactment of the Finance Bill, 2023 as is despite criticism from several quarters.

Ruto has defended the Bill saying it aims to expand the tax base while factoring in important aspects.

The Bill will expand this year’s budget to Sh2.8 trillion up from the current Sh2 trillion passed in the 2021/22 financial year.