Kenya coalition to meet over proposed taxation law

A meeting of the Grand Coalition Government Parliamentary group has been called for on Tuesday amidst a collision between the executive and MPs over taxation.

The meeting, to be chaired by President Kibaki and Prime Minister Raila Odinga will be held at Kenyatta International Conference Centre.

It comes at a time when MPs and the cabinet are on a collision over the Finance Bill which legalises taxation measures outlined by Finance Minister Uhuru Kenyatta in the current budget. (READ: Uhuru in fresh clash with MPs over taxes)

Heated debate

The meeting is also being held in the backdrop of a heated debate over the suitability of three people nominated by the Principals to head the Ethics and Anti-Corruption Commission which have been rejected by a House committee.

The nomination of Mr Mumo Matemu, Prof Jane Onsongo and Ms Irene Keino as chairperson and members respectively of the agency has sharply divided the House. Debate resumes on Tuesday afternoon. (READ: Kenya MPs in new plot to block anti-graft nominees)

MPs are also grappling with the fact that the Constitutional court may rule on the date for the General Election while they are in recess before they debate the amendments to push the date from August to December. (READ: Court to decide elections date on January 13)

Last week, the disagreement on the Finance Bill forced Parliament to suspend adjournment for its Christmas break indefinitely.

Tuesday’s meeting was announced to the MPs by Joint Government chief Whip Johnstone Muthama (PNU) through text messages.

Although Mr Muthama did not indicate the meeting’s agenda, he stressed its importance as he urged them not to miss out.

His colleague, ODM’s Jakoyo Midiwo said the whips were unaware of the agenda and had only been asked to call for the meeting.

But an independent source said the meeting, to start at 11am would discuss crucial parliamentary business ahead of the recess.

Parliament has a December 1 deadline to enact the law failure to which the Treasury will refund all monies collected as levies in the current financial year because any taxation levy effected in accordance with the Bill will be illegal.

The Cabinet is opposed to the amendments already before the House with its Secretary and Head of Civil Service Francis Muthaura terming them suicidal.

Mr Muthaura wrote a directing ministers and assistant ministers to be present during debate when the matter comes to the floor, to defeat the amendments.

Besides, in a fresh controversy, MPs are against a proposal to alter the taxation law to give the Finance Minister powers to adjust the specific rate of excise duty to take account of inflation.

They are questioning the push for the minister to adjust tax rates based on the cost of living.