The EastAfrican
Date: 13.06.2016
Page 19
Article size: 166 cm2
ColumnCM: 36.88
AVE: 55333.33
Budget estimates a pointer
to hard times ahead for
ordinary citizens
THE KENYA 2016/17 financial year budget
estimates as read by the Cabinet Secretary
Henry Rotich will lead to difficult times for
the ordinary Kenyan.
building houses as this will help bridge the
housing deficit.
We note the government commitment to
support devolution by increasing allocation
For example, the introduction of excise
to counties to Ksh304 billion ($3 billion).
duty on kerosene, which is used by nearly
However, many counties are grappling with
70 per cent of Kenyans, will lead to a rise in absorption capacity owing to the complex
the cost of living. The explanation that the
nature of the e­procurement system. We
tax is intended to address the issue of adul­ hope that adequate infrastructure will be
terated kerosene is in itself an indictment
put in place to ensure that the challenges
of the government institutions charged
bedevilling the system are addressed and
with ensuring proper standards and qual­
fund absorption by the counties enhanced.
ity for goods and services in our markets.
The Ksh21 billion ($210 million) allo­
Already, the majority of Kenyans are strug­ cation to the National Youth Service is a
gling to make ends meet and this move will demonstration of the government's commit­
only serve to exacerbate the situation.
ment to address youth challenges. However,
The situation will be made worse by the
we would like to see bold steps taken to
hike in road maintenance levy by Ksh6 (6
address structural and systemic weakness­
US cents) which will result in high costs of es that led to the loss of funds from NYS
food, transport and doing business, leading through corrupt dealings. As it is, there is
to potential job lay­offs. The relief that will no guarantee that the allocation to NYS
will not find its way into the pockets of in­
be created by the exemption from taxation
of bonuses, overtime and allowances of low dividuals.
We welcome the increased allocations to
income earners will be wiped out by the
kerosene and road maintenance levy taxes. security, agriculture and education. Over­
We welcome the move to enhance access
all, the budget appears to have been made
with next year's elections in mind as there
to public services through Huduma Cen­
tres that are to be established in all the 47
appears to be some urgency in pushing
counties.
through some of the pledges the govern­
ment made but has not been able to fulfil.
The move to bridge the housing deficit
The ordinary Kenyan has not been
gap by reducing the corporate tax from 30
properly cushioned from harsh economic
per cent to 20 per cent for property inves­
realities. We hope that the necessary ad­
tors, who build over 1,000 houses, is laud­
justments will be made before the propos­
able. However, the middle scale property
als are approved by parliament and the
investors, who are the majority, also need
Finance Bill assented to.
to be given incentives to invest more in
Ipsos Kenya ­ Acorn House,97 James Gichuru Road ­ Lavington ­ Nairobi ­ Kenya