Fallout rock bipartisan talks as Azimio demand cost of living be lowered as a truce pre-condition
Differences have rocked the Bomas of Kenya bipartisan national dialogue committee yesterday as the session turned chaotic after some Azimio One Kenya Coalition representatives said no agreement will be signed if one of the key agendas raised on cost of living is not lowered.
Azimio leaders stormed out of the meeting in protest.
Reports indicate that the Democratic Action Party (DAP)-Kenya party leader Eugene Wamalwa, Nyamira Senator Okong’o Mogeni, and Malindi Member of Parliament Amina Mnyanzi walked out after their counterparts from the Kenya Kwanza team dismissed the demands they had tabled.
The team had retreated to Machakos to prepare the final report but according to Kenya Kwanza, Azimio introduced new demands which Nairobi Senator Edwin Sifuna dismissed on Thursday saying that those were their demands even way before the commencement of the talks.
“Cost of living and scrapping of the housing levy has been among our demands from the word go. There is nothing new that the Azimio side introduced as alleged by the Kenya Kwanza side alludes. If it is not about that then there is nothing to write a report about.” Sifuna stated.
In the meeting, the Azimio side demanded that the Finance Act 2023 should be reviewed and see the Value Added Tax on petroleum products reduced from 16% to 8%.
They called for zero-rating of Value Added Tax (VAT) on basic food items and removing excise duties on locally published books and educational materials.
However, the Kenya Kwanza team dismissed the proposal by Azimio, insisting that the government’s hands are tied because the 16% VAT on fuel was part of the deal with the International Monetary Fund (IMF).
Further, the Kenya Kwanza team conceded to the reduction of the road maintenance levy by Sh 5 from the current Sh18 to Sh13.
The government side also conceded Azimio’s demand to reduce the anti-adulteration levy from Sh18 to Sh15
The Azimio team also proposed scrapping the controversial housing levy.
They said the housing levy should be voluntary, and the government needs to find other means to implement its ambitious housing program.
“We encourage voluntary participation in affordable housing schemes, the provision of tax incentives for construction, relief for first-time home-buyers and mortgage interest payments. The coalition opposes compulsory taxation for affordable housing,” Azimio said
