Tough times ahead as President Kenyatta signs finance bill into law

President Uhuru Kenyatta signing the finance bill 2018 into law PHOTO COURTESY

Nairobi,KENYA: Kenyans should brace themselves for hard times ahead after president Uhuru Kenyatta decided to sign into law the Finance Bill 2018 a day after it was chaotically passed by members of parliament.

Through his Twitter account on Friday, President Kenyatta said that the money collected via the tax will be put into proper utilization for a better Kenya.

“I give my commitment that I will ensure proper utilization of public resources for a better Kenya. I will not relent on the war against Corruption.” read the tweet.

Following the signing of the Finance Bill 2018,  money will be channeled towards financing one of President Kenyatta’s key development agenda which is affordable housing.

Mobile phone subscribers are set to dig deeper by paying more for airtime and data services as the excise duty on airtime will be increased from 10 percent to 15 percent.

The cost of mobile money transfer services is also expected to be increased from 10 percent to 20 percent.

Salaried employees are also in for tougher times as President Kenyatta’s memorandum contained a proposal to have workers contribute 1.5 percent of their earnings to the National Housing Development Fund.

Internet cost is also expected to rise as internet bundles will now be hit with an excise tax of 20 percent.

The first round of voting on the president’s memorandum was characterized by high voltage drama after a section of MPs opposing the fuel levy failed to raise the required quorum of 233 members to shoot down the proposed tax measures.

At some point, MPs opposing the bill stormed out after Speaker Muturi ruled that those opposed to the President’s proposal on 8% VAT on petroleum products didn’t have the required numbers.