The budget does not inspire productivity. It emphasizes an unsustainable funding on “Big Four Agenda” investment.
Protectionism of the manufacturing sector by imposing heavy import duty and other taxes without providing for a seamless transition will result in proliferation of counterfeits and contrabands.
We are particularly taken aback by the mischief of National Treasury using the Finance Bill 2018/9 to recommend amendment of Section 33 of the Banking Act to remove interest rates caps. It is wrong that Mr Rotich bowed to IMF and local banks pressure at the expense of consumers.
We urge MPs to veto the proposal with the contempt it deserves. The matter is actively in Court. The tokenism proposed on credit guarantees as well as proposed Consumer Credit Bill.
By raising the cost of food, there is no reason for consumers to welcome the budget. The cost of living will go up considering the cost of kerosene and transport will rise. The rise in excise tax especially on MPesa among many others can only mean a bleak future for the consumer.
The pro-elite and budget avoided committing government on austerity measures. Government did not fully invest in enhancing good governance and cutting down on corruption which costs a third of the budget.
Finally, the Sh3.07 trillion budget, with more than half expected to be funded from local revenue means the county must be ready for heavy domestic borrowing. That the public debt has surpassed the Sh5 trillion mark equally means the difficult part will be on the implementation