Kenyans hopeful Ruto's election pledges will be met in budget

President William Ruto and his deputy Rigathi Gachagua at State House, Nairobi, on June 13, 2023. [Stafford Ondego, Standard]

Kenyans have expressed mixed reactions to the Finance Bill, 2023 debate in the National Assembly.

In the Coast, opponents of the Bill argued that proposed fiscal policies were vague and didn't support specific programmes impacting people in different regions.

Kenya Land Alliance Coast coordinator Nagib Shamsan said the Bill did not allocate funds to buy one million acres to settle squatters, a promise made by President William Ruto during his campaign.

He said Kenya Kwanza had introduced a 15 per cent capital tax on the sale and purchase of land, which would affect the resettlement of the landless at the Coast.

"The president had very good intentions but started on a wrong footing with his wars against the National Land Commission (NLC). He should set aside the funds to end historical land injustices at the Coast," said Mr Shamsan.

Ruto had stoked debate on land after he promised to revive a one-million-acre scheme and set up a land compensation fund to assist locals to acquire land from absentee landlords.

The President also promised to settle squatters on abandoned State-owned irrigation schemes in different parts of the country.

On Wednesday, Shamsan said the president's directive to take away valuation services from NLC to the Ministry of Land was unconstitutional.

"These are things President Mwai Kibaki tried but failed. The President should strengthen NLC, and it will deliver for him the promise to end land injustice," he said.

In the past, most absentee landlords have turned down invites by the State for talks with squatters. Kenya Kwanza also promised to use compulsory acquisition if they refused to sell.

"We have all the laws we need to solve the land issue, but we lack people with integrity, enough funds, and regulations to deal with this problem once and for all," said Mr Shamsan.

Isabellah Nyaga, a customs agent, said most of the proposals in the Bill were good but should be implemented gradually owing to economic hardships.

"The housing levy is a good idea that has been politicised because it is coming at the wrong time. 16 per cent VAT on fuel will have a ripple effect on all sectors. Rome was not built in a day. The government can postpone some of the proposals to next year," said Ms Nyaga.

She said the directive to allow importers to select their preferred mode of transporting cargo from the port of Mombasa had a positive impact on the county economy.

Willy Kirwa at his dairy farm in Eldoret. He expects the government to lower the prices of farm produce in the budget. [Peter Ochieng, Standard]

In western Kenya, residents fear the budget may overlook the issues faced by sugarcane farmers and small-scale miners, despite Ruto's campaign promises. The region's economy heavily relies on sugarcane farming, cross-border trade, and mining.

President Ruto pledged to cancel all debts of State-owned sugar millers in his first 100 days and to regulate the mining sector. He also promised to revive the Mumias and Nzoia sugar companies.

Bishop Julius Abungana said the proposed hike in excise duty on sugar could lead to a price increase.

"It is going to affect the sugar sector negatively as it will only increase the cost of producing the sweetener. This act will not only render the industry uncompetitive but make Kenya an attractive destination for imports from the region and globally where production is cheap.

"The proposal to charge excise tax of Sh5 per kg of sugar on already ballooning sugar prices goes against the government's agenda of bringing down the cost of living," he said.

Abungana said the government could have devised a plan to reduce production costs in the sugar sector, as the country imports 52 per cent of its sugar.

According to the Sugar Research Institute, the average cost of locally produced raw sugar is about $800 (Sh112,000) per metric ton (MT), while the average cost of imported raw sugar landing at the Port of Mombasa is $600 (Sh83,400) per MT.

The bishop, however, was pleased that the largely unregulated mining sector in the region will be reorganised.

Last month, Mining Cabinet Secretary Salim Mvurya, while visiting Vihiga County, promised to transform the sector, giving small-scale miners a greater stake. The only condition the CS imposed was for the miners to form a cooperative to advocate for their rights and self-regulation.

Residents are also happy that fertiliser has been zero-rated in the Finance Bill.

The fertiliser, which is distributed at National Produce and Cereal Board depots, is now sold at Sh3,500 for a 50-kg bag of both CAN and DAP, down from an average price of Sh7,500.

Ruto's promises to the people of Nyanza during the 2022 campaigns and following his election marked the start of a campaign to win the region's support.

These promises include reviving the 67km Kisumu-Butere railway line, renovating the Kisumu Port for Sh3b, constructing essential roads, expanding Kisumu Airport, and building airstrips in Migori and Kisii counties.

However, more than eight months after its renovation, the railway line remains unused, with its rail metals now at risk from vandals and scrap metal dealers.

A section of Kisumu Port. [Denish Ochieng, Standard]

Construction of the Suneka Airstrip in Kisii has stalled for over two years, even though the government has promised to establish another airstrip in the Kiendege area, Nyamira County.

Plans also include building an agri-industrial park in Kehancha town for aggregation, value addition, and processing to boost incomes.

Construction of the Sh25 billion Koru-Soin dam project that was suggested to the president by Luo Nyanza leaders, is also on the list.

In Uriri, President Ruto promised a Sh50 million hospital and an additional Sh370 million to extend water access to more homes in Siaya and Bondo.

The government was also expected to announce plans for former President Uhuru Kenyatta's flagship project for Nyanza, which is yet to live up to its billing. At the port, the construction of MV Uhuru II at the shipyard is yet to be completed, while operations have remained closely-guarded.

National Assembly Majority Chief Whip Sylvanus Osoro said the government is working on its first budget to ensure that projects are aligned with the available resources.

"We have been working based on the previous regime's budget. We are now set to commission the Kenya Kwanza projects because this will be our first financial year."

He said Kenyans would be able to mark their report form at the end of the first five years.

Kisii leaders agreed to establish a cancer center to promote early disease detection and reduce patient costs. The project will receive Sh600 million from the national government, in addition to Sh2.8 billion from the Arab Bank for Economic Development in Africa.

[Benard Sanga, Patrick Beja, Robert Amalemba and Eric Abuga]