Lobby launches alternative budget

By Dann Okoth

Finance Minister Uhuru Kenyatta may not propose taxing MPs, or reducing the number of ministries to ease taxpayers’ burden in the Budget.

However, an alternative budget says he should. And tells him why. Those behind it wish Uhuru could borrow a leaf and consider the plight of the poor suffering because of the Government’s huge expenditure.

Turkana residents receive relief food early this year. Photo: File/Standard

The People’s Budget, as it is called, proposes radical cuts in the cost of running the Government.

The focus is to make basic commodities and services available for a majority of Kenyans.

Prepared under the auspices of the Nairobi People’s Settlement Network and Kisumu Social Rights

Association, the budget was read on Thursday at Ufungamano House, Nairobi.

Bloated government

"The large number of ministries can no longer be justified in the harsh economic times when many Kenyans are dying of starvation," says Nairobi People’s Settlement Network chairman, Humphrey

Otieno.

He says reducing the number of ministers could save at least 50 per cent of Government recurrent

expenditure and bridge the financial gap in other critical sectors of the economy.

The group’s recommendations come barely three days to the annual national Budget speech that

has been clouded in controversy over Sh10 billion ‘typing’ error in the supplementary figures.

Is this an exercise in futility?

Otieno does not think so. This is the second year the group islaunching the alternative budget.

"Last year, our proposals were considered in the Budget. We proposed taxation of MPs and that

money be set aside for slum upgrading

project. And this was considered," he says.

"This is an unusual forum for me. Normally when I discuss the Budget and economics, the people

I meet are ministers and permanent secretaries," noted Swedish Ambassador to Kenya Anna

Brandt during last year’s launch of The Peoples Budget.

"Wananchi should meet politicians and technocrats because decisions on where to distribute resources

should be inclusive. This forum is an indication that the budget dialogue is little by little changing from being closed and technical, to becoming inclusive

and demystified," she says.

Economic and Social Rights Centre Director Odindo Opiata says the inclusion of the public in the budget formulation process is long overdue. He lauds the initiative by the Nairobi and Kisumu People’s Settlement groups.

"The Budget is a translation in financial terms of what the action programme of the state is," he

says.

He says the Budget is an important indicator of what a government intends to do or is doing.

"It reflects the values of any country — who it values, whose work it values and who it rewards and

who and what and whose work it does not value," says Opiata.

He says participation of the people is a critical element in ensuring the Government responds

to the need and interests of the people, especially the poor and other excluded groups.

"The cost of living has gone over the roof. A majority of Kenyans cannot afford basic necessities,"

says Mr Athman Saidi, the People’s Budget steering committee chairman.

The People’s Budget

In their research, leading to the publication of this year’s alternative budget, the group found that

a family of five people including father, mother and three children needed Sh844 per day for meals,

going by the current food prices.

The cost is broken down to include breakfast at Sh147, lunch at Sh235 and supper at Sh196. Other

outstanding items such as water and paraffin amount to Sh259.

"From the above it is clear that a poor family cannot be expected to live on a dollar a day (about

Sh80) and still have dignified life," says Saidi.

"Even with these changes, a poor family will need Sh259 per day for breakfast, lunch and dinner," he says.

According to the group, the data on poverty, inequality and unemployment provides a background

to understanding the role the Budget plays in development.

The group proposes introduction of price controls on basic services and commodities.

"We also demand that working wages be increased to at least Sh15,000 per month in formal and informal employment sectors," says Sudi.

The group is also pushing for increased support for subsistence farming in the urban and peri-urban

areas.

They are also calling for increased opportunities for local investment and entrepreneurship by provision of low interest loans and subsidies.

The group also calls for expansion of slum upgrading programmes and facilitation of access to credit and finance for low-income groups.

"At least 10 per cent of Government revenue should be allocated to development of low cost housing

in the slums across the country every year," says Kisumu Social Rights Association Chairman Shadrack Omondi.

He adds: "Slum upgrading and social housing projects should be expanded using affordable building technology for cheaper but better houses for slum residents."

Water and sanitation in most slums and poor neighbourhoods are often appalling even after the

formation of the Nairobi City Water and Sewerage Company, they say.

They recommend among other things proper drainages to reduce the risk of contracting malaria

in the settlements.

The group says water companies like NCWSC should suspend looming increase in price of water to people living in informal settlements.

"Support should also be provided to those living near Lake Victoria who have necessary equipment to pump and use the water for irrigation and other purposes," says Omondi.

Access to health

He says the National Health Insurance Bill should be reintroduced and passed immediately to help the low-income persons access health services.

The group has also petitioned the Treasury to allocate more resources for education, security

and infrastructure in the slums.

The group has also called for more funds for the constitutional review process.

To arrive at the recommendations, the group has been doing research and also educating masses

on what they should expect from the Government.

The group is also working with the Ministry of Finance to produce a simplified document of this year’s National Budget.