What next after President Ruto fails to sign Finance Bill

After weeks of grandstanding, President William Ruto yielded to public pressure on Wednesday, opting not to sign the controversial Finance Bill 2024, which sparked nationwide protests following its passage in Parliament.

In a State House address flanked by lawmakers, President Ruto, who had earlier adopted a stern stance against the anti-tax protests that led to fatalities and a breach of Parliament, announced his decision to return the bill to the National Assembly, currently in recess.

“I govern, but I also lead. The voice of the people has been heard,” declared the Head of State, following an impassioned defense of the proposed tax hikes in the divisive bill.

“Having reflected on the continuing conversation around the Finance Bill and listening keenly to the people of Kenya who say they want nothing to do with it, I concede. Therefore, I will not sign the Finance Bill, and it will subsequently be withdrawn,” Ruto affirmed.

With the National Assembly adjourned, legislators will need to convene a special session to deliberate on the president’s reservations.

Overturning these reservations, which were not formally detailed by Ruto would require a two-thirds majority vote.

In the absence of parliamentary action, the bill will automatically become law after 14 days, as per constitutional provisions assuming it has been assented to.

While National Assembly Standing Order 140 allows for bill withdrawal at any stage of debate, questions linger over whether this applies once a bill has passed its third reading.

Rarieda MP Otiende Amollo hinted that the opportunity for withdrawal may have passed for the Finance Bill.

Ruto announced budget cuts following his concession, earmarking a Sh200 billion reduction in the development budget. He proposed austerity measures affecting the presidency, state departments, including cuts to confidential expenditures, hospitality, vehicle purchases, and renovations.

Budget reductions

“I propose Parliament and the Judiciary also implement budget reductions so that we live within our means,” he added, while pledging a renewed anti-corruption campaign.

He said he was willing to engage the youth, the main agitators against the unpopular bill, even as he promised to have those killed in the anti-tax protests “accounted for”.

“We will have a mechanism for how they will be accounted for,” Ruto said moments after he condoled with those killed by the police’s indiscriminate shootings. Many on social media had demanded an unconditional apology.

Concerns persist that the matter may be whitewashed, with Ruto asserting only “six” fatalities despite human rights activists claiming up to 23 Kenyans died in the protests. 

He downplayed claims of protesters being abducted, asserting they were found in police custody.

Despite fears of reprisals from demonstrators, Ruto avoided the topic, while condemning protest actions as “attacks on constitutional institutions.”

Earlier threats of a crackdown on protesters, labeled “organized criminals,” were made on Tuesday evening, following Defense Secretary Aden Duale’s deployment of Kenya Defense Forces (KDF) to quell protests—a move halted by the courts.

Ruto remained silent on KDF deployment in Nairobi streets, emphasising planned engagements with stakeholders, including clergy, civil society, and youth, to address their concerns.

“I am looking forward to a conversation with my sons and daughters - the young people of Kenya,” said the Commander-in-Chief.

Previously, Ruto defended the initial Finance Bill proposals, commending MPs for prioritising allocations in agriculture, education, and healthcare.

He highlighted budget increases, some of which Treasury Secretary Njuguna Ndung’u warned might be scrapped if the bill failed.

These included an allocated Sh18 billion for hiring junior secondary school teachers. MPs denounced proposed cuts as blackmail, citing unnecessary expenditures, such as Sh18 billion on domestic and foreign travel in the current fiscal year’s first nine months.

Despite concessions, including scrapping contentious bread and vehicle taxes, Ruto acknowledged continued public demand for further concessions.