Azimio la Umoja leaders have issued their proposal to the government on how the cost of living can be lowered.
Their proposals were presented before the National Dialogue Committee on Tuesday during the last public hearing.
In the proposal, the Raila-led Coalition said the current budget outlook is based on the imposition of accelerated taxes and massive borrowing.
According to the leaders, public finances are impeded by heavy taxation and massive borrowing hence leading to a high cost of living.
"Public expenditure should fulfill and promote Article 43 Rights as a priority. The state has a duty to fulfill the Act of the constitution rights to the highest attainable standards," they said.
Among other issues that Azimio faulted the government for that have led to the rise in the cost of living is the exchange rate as well as the budget deficit.
"Kenyan Shilling was about Sh120 to US$ in August 2022 but by September 2023 it had gone up to Sh150. The depreciation of the Kenya Shilling brings more suffering from escalated prices of imports that affect access to inputs and food imports," Azimio said.
They faulted the Kenya Kwanza government for overseeing historically the most contested Budget ever, which they said even ordinary citizens read incompetence in economic management.
The proposal highlighted that corruption and theft of public resources aided the rise in the cost of living, not forgetting to mention wastage, inefficiencies, and imprudent use.
"Eradicate theft of public money, wastages and holding public officers accountable will save taxpayers billions that can be directed towards lowering the high cost of living," they said.
193 billion which has been spent for domestic and international travel was said to be high by the Azimio leaders.
They compared the amount to more vital issues affecting Kenyans which have undergone reduction like resources for social protection, 70 billion from housing tax, and resources to counties.
"Total debt service is estimated at 65 percent of ordinary revenue using the current CBK indicative exchange rate. However, the aggressive ordinary revenue target of 2.57 trillion is unlikely to be achieved considering sluggish economic performance," the leaders said.
The proposal said Kenya Kwanza using interest rates as a monetary policy instrument is hypocritical since the rates attract banks and financial asset holders to lend to the government.
Consistently high-interest rates in the past year continue a structural defect above where Savings deposits are poorly rewarded, while lending rates and the spread for banks are kept about three times or more of the savings rates.
This they said discourages both savings and investments.
The Raila-led Coalition proposed to the Dialogue team to stimulate production by reducing interest rates.
They also want tax reductions on energy, food, fuel, SMEs, and housing levy.
"Review extensively or repeal in totality the Finance Act 2023. Introduce and implement necessary subsidies like on fuel, energy, and production for a specified period of time," the leaders proposed.
"There should also be an enactment of essential legislations and policy guidelines along with administrative measures to cut down or curb on misuse of public funds by state officials."
