House charged as Treasury set to release Budget estimates

By James Anyanzwa

Nairobi, Kenya: National Treasury Cabinet Secretary Henry Rotich is set to table before the Parliamentary budget committee estimates for the 2014/2015 financial year with increased focus on programmes meant to lift the economy to a growth rate of 5.8 per cent this year.

The presentation which must be made by April 30, comes against the backdrop of increased spending on the devolved system of government, shrinking revenue collections and increased revenue losses through wastage and extravagant spending by public officers.

Consequently the Government is under pressure to diversify its revenue sources by taxing rental income and scraping most of the essential commodities from the list of tax-exempt items.

The National Treasury is also considering the possibility of re-introducing capital gains tax to shore up its revenue reserves that has come under immense pressure because of the expanded government operations.

Mr Rotich said in the 2014/2015 spending plan more attention would be paid on addressing the weak competitiveness of the economy.

Investment destination

Kenya’s increased cost of doing business has rendered the country a costly investment destination.

“We want to improve the business environment, make it more attractive to the investors so that we can be able to generate more employment opportunities in the economy,” Rotich told The Standard yesterday. He singled out insecurity, huge infrastructure deficit and   the prevailing high cost of power in the country as amongst the serious threats to the country’s economic growth forecast.

Rotich said more would be deployed towards measures to improve security in the country, improvement and development of infrastructure projects and revamping agricultural production to ensure food security. He said special attention would also be paid to health, education and on measures to cushion the poor and the vulnerable through social protection.

“We are looking at the growth rate of about 5.8 per cent this year and a high growth in the medium term,” said Rotich.

During his first Budget statement as a Cabinet Secretary last year Rotich allocated Sh13.4 billion towards cushioning the less fortunate, poor, elderly and persons with disability in the communities.

Rotich said poverty and vulnerability pose significant risk to the wellbeing of some members of the society with over 50 per cent living below the poverty line.