Despite threats by MPs about President Uhuru Kenyatta's memorandum on tax proposal, parliament will after all back 8% VAT on petroleum products.
Both opposition and government MPs agreed to back Uhuru's memorandum despite MPs seeking to have VAT removed.
At Orange House on Tuesday, Uhuru received a major boost when Raila whipped MPs to back the move.
"In light of the need to address the suffering of the people while ensuring that development is also delivered, we recognise and appreciate that there was bilateral support for our attempt to remove VAT altogether and the president was able to meet us half way by lowering the tax from 16 to eight percent,” the MPs said in a joint statement read by National Assembly Minority Whip Junet Mohammed.
Earlier, Majority Leader Aden Duale insisted that Jubilee legislators, despite stiff opposition, will back the president resolutions.
At State House, Uhuru chaired a Jubilee PG where MPs agreed to back him.
"We shall back the president. It may not be a popular decision but that's what we shall do."
It is not clear whether MPs will allow budget cut on NG-CDF and NGAAF, which are elementary in their discharge of duties.