In Summary

• MPs say tax measures stand to hurt common mwananchi.

• Concerns prevail that agriculture allocated dismal amounts yet has great potential and needs.

Treasury CS Ukur Yattani ith the Finance chairpersonGladys Wanga, Budget chairmanKanini Kega and clerk Michael Sialai at the National Assembly on April 7.
Treasury CS Ukur Yattani ith the Finance chairpersonGladys Wanga, Budget chairmanKanini Kega and clerk Michael Sialai at the National Assembly on April 7.
Image: FREDRICK OMONDI

The budget estimates presented by Treasury Cabinet Secretary Ukur Yatani in Parliament have drawn mixed reactions from lawmakers.

Some legislators, from both sides of the political divide, said the estimates were okay. Others poked holes in some of the tax and revenue proposals.

Standing out for criticism was the proposed revenue target of Sh2.4 trillion. A number of members were pessimistic it could be achieved in an election year.

The allocation of Sh7 billion for Covid-19 vaccines has also drawn sharp opposition. MPs expressed concern President Uhuru Kenyatta’s administration has denied agriculture much-needed resources.

Also criticised were the proposed tax relief on motorcycles and spare parts, unlikely to benefit the common mwananchi.

“It is a tight budget. We have to walk a tight rope," Tongaren MP Eseli Simiyu said.

He supported the proposed fertiliser subsidy for farmers. "It has addressed farmers' needs by provisions of subsidised fertiliser,” the MP said.

His Rarieda counterpart Otiende Amollo said the budget estimates are not bad.

“It has what we wanted. We are glad Value Added Tax would be reduced for commodities such as motor vehicles and charity donations. MPs will agree on the proposals and approve what works," Amollo said.

“We will sit and check in which areas to relieve wananchi. We are the ones with the power to pass the budget. We will do this, considering it would be the new government to implement. We'll prioritise issues affecting Kenyans,” the MP said.

Kikuyu MP Kimani Ichung'wah took issue with the proposal for persons in tax disputes to deposit 50 per cent of the contested amount.

“This is subject to abuse," he said.

Ichung'wah said the proposals were pro-business and not pro-wananchi.

“It will punish the common wananchi. It is good to vouch for insurance but not in a way that you hurt wananchi. Encourage Kenyans to take insurance cover and not punish them.”

Ichung’wah, a former Budget committee chairman, said, "The revenue estimate is beyond what is possible in a election year. We hope the budget committee will rationalise the figures to be realistic. We are likely to have a higher debt ceiling."

Kieni MP Kanini Kega, the current Budget committee chairman, said, “We'll work on the budget as tabled today. We will do public participation. When before committees you will see changes.”

He said the proposals will be passed by Parliament later next month, adding that the House’s budget making role has not been usurped.

Garissa Township MP Aden Duale expressed concerns the  National Assembly had ceded a lot of ground in decisions around the budget.

But Kega fought off the claims saying, “We will be able to do our budget. The budget making role not usurped.

“It is a balanced budget. We hope we'll get the projected revenue. Let's remember we have revenue to collect even as we do our politics,” the Kieni MP said.

“We beseech politicians to remember we have a country to run. Let's avoid violence. If we have more people contributing to the food basket, we will be able to collect enough revenue.”

Nyando’s Jared Okello took issue with the allocation of Sh7 billion to Covid-19 vaccines.

“Setting aside Sh7 billion for vaccination, especially after we have been asked to remove masks, is not making sense. The money can be used for something else. Let us redirect it to feed our nation,” he said.

Okello also raised concerns about the proposal to increase the debt ceiling beyond Sh9 trillion.

“More debt will hurt wananchi. I wish they zero-rated farm implements so we would pay more attention to issues of agriculture. It is a good start, though,” he said.

Migori Woman MP Pamela Odhiambo said, “Interventions on youth affairs didn't come out clearly. It should be highlighted again.

"Instead of money for vaccines, let's put money in  agriculture. If only we could improve agribusiness, we would make a great change.”

(Edited by V. Graham)

 

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