The Kenyan 2019/2020 budget was read yesterday (15.06.2019) before the esteemed Members of Parliament. But sadly, the budgetary allocations reveal a shift in focus, in favor of the rich and privileged as the poor and young set to suffer even more as the taxman comes for what is his.
Kenya’s Cabinet Secretary for National Treasury (Finance Minister) Henry Rotich holds up a briefcase containing the Government Budget for the 2019/20 fiscal year in Nairobi, Kenya, June 13, 2019. REUTERS/Baz Ratner
It’s a mixed bag for the Kenyan youth as various sectors such as education, development, and agriculture get a huge boost from the latest budget. According to a report by Capital News, “Treasury Cabinet Secretary Henry Rotich allocated Sh55.4B to free day secondary education while 13.4B was set aside for the free primary education program. He further stated that Sh3.2B has been set aside for the recruitment of teachers, 1.5B for infrastructure development and 10.3B for tuition and tool support.” For those seeking an education, this is good news and could help students stay on course with the curriculum amid concerns of ineffective learning with interruptions from regular teachers’ strikes.
With increased budgets on agriculture, food security is a priority for this republic. Capital News reports, “Ministries under which the Big Four Agenda will be executed are among key beneficiaries of the budget with priority areas listed in the development blueprint set to be funded to the tune of Sh 450B according to the spending plan outlined by Rotich when he presented the budget at the National Assembly Thursday evening.”
“The allocation represents 14.6 percent of the Sh 3.02 trillion budget. The implementation of agriculture, manufacturing, universal health, and affordable housing projects will cost the government Sh55.77B, Sh125.4B Sh82.8B and Sh103.2B in the medium term.”
However, the big losers will see some many in the informal sector brought into the fold so as to increase those with taxable income. Small and medium enterprises (SMEs) as well as those in e-commerce, face taxation whereas other sectors within the Big Four agenda could enjoy reprieve within the stipulations of the new budget.
For those in informal employment such as boda-boda operators, there are new rules in place to ensure they contribute to Caesar’s collection plate. A report on the Daily Nation reported, “in the budget, the CS Rotich proposed to amend the Insurance (Motor Vehicle Third Party Risks) (Certificate of Insurance) Rules to require all passenger-carrying boda-bodas and tuk-tuks to have an insurance cover for passengers and pedestrians. ”
For the young up for a good time, excise duty has been raised on cigarettes, wines, and spirits by 15 percent as part of newly proposed tax measures.
Instead of boring you with all the details of the budget, here is the bottom line as it applies to Kenya’s youth:
1. If you ever wondered whether farming is a viable career choice, this might be your opportunity to put that fallow plot to good use and do some farming. Food security and agriculture have received a boost and it going to be a great time to test out your green thumb.
2. If you have an e-commerce business, brace yourself. There might be a need to re-evaluate your marketing strategies and be smart about your online platform; the taxman will be expecting a little something from you.
3. You might want to reconsider your Friday night plans as alcohol and cigarettes attracted a raise in tax. It might be time to acquire new bonding activities with friends.
