Some Kenyans has expressed mixed reactions following the release of the first full financial year budget under the Kenya Kwanza administration.
The budget speech that was briefly interrupted by the walk-out of more than a dozen lawmakers from the opposition coalition, has continued to hit Kenyans hard especially on the areas that will likely increase the cost of living.
Fred Oteng'o said the budget has failed in honouring pledges to the counties warning that the devolved units will shut down in the very near future.
“In the then BBI Bill 2022, counties were assured of mandatory 35 per cent allocation from the Exchequer. In the Finance Bill 2023, it's 11.5 per cent allocation and 67 per cent allocation to the National government with 29.5 per cent going to the CFS,” Oteng'o said.
Abdirahman Taqal also faulted the Treasury’s move to raise excise duty on sugar saying there is no justification for the move.
The Treasury in an effort to discourage consumption of sugar, proposed to the National Assembly to introduce excise duty on imported sugar at a rate of Sh5 per kg.
But this excludes sugar imported or purchased locally by registered pharmaceutical manufacturers for use in the manufacture of pharmaceutical products.
“By this analogy government can use this pretext to raises taxes on cooking oil since they're known to be the major causes of cardiovascular diseases,” said Abdirahman Taqal on twitter.
According to Kelly Mwangani, President William Ruto’s administration is keen on increasing production hence lowering cost of living through the subsidy programme.
A majority of citizens have expressed skepticism, especially with the increased VAT on fuel products that is contained in the Finance Bill.
The proposal is contained in the Finance Bill 2023 that was yesterday voted on by the National Assembly.
“The budget is good because the country must run. However, the government needs to cut down on some of the levies. For example the fuel issue is very important,” Charles Mola said.
