A day after the tabling of the Sh3.9 trillion budget for the financial year 2024–2025 by the Cabinet Secretary for Finance and Economic Planning, political leaders and the residents of Murang’a County have expressed their concerns, arguing that if the budget is adopted by legislators in the National Assembly in its entirety, it will continue to hurt Kenyans, who are already overburdened by the high costs of living.
Led by Murang’a Woman Representative Betty Maina, who spoke in Gatunyu, Gatanga sub-county, during a NGAAF economic empowerment forum, they noted that some clauses in the Finance Bill that were offloaded in the budgetary estimates will make the lives of most Kenyans unbearable, considering that most of them cannot afford to buy some essential commodities that were hiked in the budget.
“I urge the Parliamentary Committee on Finance led by Molo MP Kuria Kimani to relook at the grievances raised by Kenyans for consideration with the aim of expunging them before adoption by legislators in the National Assembly,” she said, adding that,
“Bread was previously VAT-exempt, and now a 16% tax on the commodity has been imposed, and that will make it hard for Kenyans as bread is the most readily available food that finds its way to the table of most Kenyans.”
We support the government’s efforts, and while the country can only grow through taxes, the bill must be amended before being passed to expunge the punitive clauses,” she added.
While expressing similar concerns, Senator Joe Nyutu said the proposed increase in tax on fuel, taxes levied on motor vehicles, and their spare parts will drive many Matatu operators out of business.
“If this happens, it will have a ripple effect on many Kenyans who use matatus as their mode of transport as the operators will hike fares. Let the finance bill be amended,” he observed.
On their part, the residents say they are reeling from heavy taxation from the government, and if more taxes are levied on them, they will be heavily burdened.
One of the residents, Mary Muthoni Kariuki, who is a farmer from the constituency, disclosed that she is particularly concerned with the proposed levy on bread.
“We cannot currently afford to buy bread, and we term it a luxury; how about when it increases? She posed.
“We urge the government to consider lowering the cost of basic commodities instead,” she added.
Muthoni also noted that the proposed levies on motor vehicles, which also include fuel, will have a resultant effect on their farming activities, and it will be hard for them to take their farm produce to the markets.
Another resident who is a content creator, George Nguku, noted that the industry has attracted and employed many young people, and thus imposing a levy on the proceeds they earn from content creation will sound like a death knell to the industry.
“I have employed four youths to help in the production and dissemination of my work, and I am afraid that if a 20 percent levy is imposed on proceeds from content creation, I will do away with two of them, rendering them jobless, as it will be difficult for me to maintain them,” he said.
He also termed the proposed increase in the charges on money transfers as punitive, as it will push the costs of transacting businesses by most Kenyans who are at the bottom of the pyramid.
They urged the Members of Parliament to consider expanding the tax net by reaching non-compliers instead of overtaxing the already overburdened tax payers.
During the NGAAF event, all 15 primary schools from Mugumoini ward received a 5000-litre water tank each, while seven self-help groups that applied and qualified for NGAAF grants received their cheques worth Sh100,000 each.
Further, all 1263 girls in 15 primary schools in grades 5, 6, and JSS were supported with 8 packets of sanitary towels, totaling 10104 packets.
The 750 elders present also received blankets and food essentials for all the attendees.
By Florence Kinyua
