State set to fund key policy areas

The Government will reduce expenditure on non-core activities to fund key priority areas, the Treasury Cabinet Secretary has said.

Henry Rotich said to support economic growth, the State had adopted measures to fund its key policies while safeguarding a sustainable debt position.

Speaking during the opening of public hearings for the 2018/2019 Medium-Term Budget at the Kenyatta International Convention Centre in Nairobi, Rotich said allocations to key areas such as universal healthcare, food security, manufacturing, housing, education, infrastructure, energy, and social protection would be prioritised.

Tax base

Among the measures to shore-up revenues are expansion of the tax base to the informal sector, betting lotteries, and gaming, overhaul of the Income Tax Act to remove most exemptions, and rolling out of integrated customs management systems to prevent concealment, undervaluation, misdeclarations, and falsification of import documents.

The CS said other measures included implementing regional electronic cargo tracking to tame transit diversion, scaling up ongoing and routine activities such as pre-verification of conformity, benchmarking, and auctions.

He also listed matching and use of third party data to boost compliance by integrating iTax with IFMIS, expanding the tax base by pursuing non-filers as well as enhancing investigations, intelligence capacity, and the Kenya Revenue Authority's capacity to collect revenue.

“We are all aware that the implementation of the ‘Big Four’ plan requires huge capital outlay.

"To ensure we create fiscal space to raise the required resources we shall undertake a raft of expenditure reform measures,” said Rotich.

Deputy President William Ruto, who attended the function, said projects that would help deliver the ‘Big Four’ development agenda at the heart of the Government’s plans to create jobs over the next five years would be prioritised.

He said the State would significantly increase the level of investment in food security, affordable housing, manufacturing, and affordable healthcare for all.

Development objectives

“We will focus on addressing the challenges Kenyans are facing through investments that enhance the attainment of desired development objectives,” said Mr Ruto.

He noted that public participation in the budget-making process promotes transparency and accountability.