Kenyans to pay more taxes to run government

Business

By Stephen Makabila

Kenyans will have to dig deeper into their pockets to fund the implementation of the new Constitution.

Legal experts have indicated the Government is likely to increase taxation, to generate revenue needed for implementation over the next five years.

"Chances are that Kenyans are going to pay more taxes to meet the implementation costs because development partners cannot provide everything," said lawyer James Mwamu.

Charles Otieno, the Director of the Institute of Policy and Quality, said the Government should not rush into increasing taxes.

"Let the Government first use what it has efficiently. In one or two years, we may know the clear projections of the cost after various arms of Government involved in implementation come up with their plans," said Dr Otieno.

However, he said any increase in taxation has to be gradual.

Justice and Constitutional Affairs Minister Mutula Kilonzo, was last week quoted as saying the implementation costs would be immense, and that foreign assistance will be needed.

Although the Fifth Schedule indicates the implementation is to take five years, the Cabinet last week decreed to conclude the process within a year.

An opinion poll released by Synovate, formerly Steadman, on Thursday, indicated 56 per cent of Kenyans were willing to be taxed more to run the Government under the new laws.

Forty-four per cent of respondents said they were unwilling to pay more.

However, Synovate Managing Director George Waititu indicated current optimism was likely to generate local and international investor interests.

Waititu said Kenyans were optimistic in spite of rising food prices – 12.5 per cent and 25 per cent increase in prices of bread and milk in the past two months.

Saboti MP Eugene Wamalwa on Saturday said Kenyans should be ready to cater for the implementation costs because the new laws are of immense value.

"Implementation is a challenge but it will be overcome if we are committed to realising our goals," added Wamalwa.

Mwamu said on Saturday the formation and sustenance of various commissions and county governments requires massive resources.

Forty-seven county governments are expected to be created when the new constitution is fully effected. The counties are to have their own assemblies and executive committees for administrative purposes.

At the same time, Mwamu cautioned that measures should be taken to avoid devolving corruption.

"Those to be given the authority of running county governments should be people who have never been linked to corruption to prevent the rot that has been at the national level from trickling down to counties," added Mwamu.

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