The Finance Bill Saga; Embakasi East Member of Parliament Babu Owino Speaks!
The Kenya Finance Bill 2023 is a proposed legislation that aims to make significant changes to the country’s tax regime and financial sector. The bill was introduced to the Kenyan Parliament in January 2023 and is expected to have a significant impact on the country’s economy and the common citizen.
The bill proposes to increase various taxes which are directly impacting the lives of the majority middle class citizens in Kenya. The bill will have an impact on the following; Value Added Tax (VAT) from 16% to 18, Income tax for individuals earning above KES 500,000 per annum (approximately USD 4,500)
Additionally, Excise duty on petroleum products, such as petrol, diesel, and kerosene and Tax on digital services, such as online transactions and e-commerce These increased taxes may lead to a reduction in disposable income for the common Mwananchi, making it more challenging for them to afford basic necessities like food, healthcare, and education.
Embakasi East Member of parliament Babu Owino sat down with Youtuber and TV host Oga Obina at the famous Oga Obina extra to discuss the impact of the proposed finance bill to the gaming sector and especially the proposed 20% increase on exercise duty on gambling. These measures, if passed, could spell disaster for the industry, leading to widespread job losses, company closures, and a significant loss of government revenue.
The industry is already reeling from the impact of COVID-19, and these new regulations could be the final nail in the coffin. It’s not just the betting companies that will suffer – the entire ecosystem, including sports teams, events, and charities that rely on sponsorship from betting companies, will also be affected.
The bill has increased the exercise duty by a rate of 266% claiming its a defect to curb youth addictions to gambling and as a measure to disadvantage betting and gambling crime related issues.
“The bill is draconian and all members of parliament need to vote “NO” and as for the public, peaceful demonstrations are allowed and we support them and soon we will join you after our debates in parliament. This bill has caused untold sorrows to the lives of Kenyans.” Babu Owino noted.
