The Federation of Kenya Employers (FKE) calls for a review of the Finance Bill 2023, saying the Bill in its current state is unsuitable for Kenyans.

FKE President Jacqueline Mugo says the government has a right to broaden the tax base in the country but must be considerate to its citizens.

“We are concerned about lack of consultation by the government before it increases its tax base,” she said.

Speaking during an annual general meeting of the FKE Western Kenya branch in Kisumu, she noted that if the Bill is implemented, it will be very difficult for ordinary Kenyans to survive in Kenya.

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Further, Mugo says the government should concentrate on reducing the cost of business and bringing down the cost of living.

“It is quite unfortunate that the cost of doing business in this country is going higher as the government plans to add more burden,” she said.

She also stated that the 6 per cent increase on the housing levy, the increases in NSSF, and the proposals under NHIF have already compounded the situation before the Finance Bill 2023 comes in.

She says the Bill creates an administrative burden for taxpayers, especially those with multiple transactions.

“This Bill includes mandatory remittance of withholding tax, which must now happen within three days, which we believe is unrealistic and it is difficult for businesses to meet this,” she added.

Mugo says the Bill is unsustainable and will hurt business, negatively impacting small businesses' growth, development and sustainability.

She says the employers’ morale is likely to nose dive since they will be asked to relook at the treatment of certain employee benefits such as pension and medical insurance.

The Finance Bill 2023 was On April 28, 2023, tabled in Parliament for the first reading on May 4, 2023.

It proposes a raft of changes and amendments to the various tax statutes in Kenya and other laws, such as the Stamp Duty Act, the Insurance Act, the Capital Markets Act, and the Unclaimed Financial Assets Act.

The Statutory Instruments Act, the Betting, Lotteries, and Gaming Act, the Evidence Act, the Kenya Roads Board Act, the Road Maintenance Levy Fund Act, and the Retirement Benefits Act.