Mudavadi: Tough times will pave way for brighter future

Prime Cabinet Secretary Musalia Mudavadi has defended the government’s tough but necessary decisions last year.

He said the measures were intended to provide long-term solutions to the country’s economic and social challenges.

 In his New Year message, Mudavadi expressed that 2024 brings new hope and opportunities for Kenyans, as the government continues to lay a solid foundation for sustainable economic and social transformation.

He acknowledged that some measures may have been painful in the short term but stressed their long-term benefits for the people.

One of the government's notable moves in 2023 was the introduction of a new tax regime through the controversial Finance Act.

 The Finance Act 2023 introduced new taxes including the Housing levy, and increased existing taxes on various goods and services, such as digital transactions, cryptocurrencies, gambling, fuel, alcohol, tobacco, and sugar.

The Act also lowered the threshold and increased the rate for turnover tax, which applies to small businesses with annual turnover below Sh25 million.

Kenyans felt the impact as the phased implementation of the taxes began on July 1 and September 1, with the final round set to take effect from January 1, 2024.

 Mudavadi said the decisions were neither easy nor driven by populism, saying they were meaningful, appropriate, and necessary.

 He noted that the government is actively exploring alternative approaches to address the country's challenges, adding it will no longer be business as usual.

 "Let us collectively turn the tide. We can no longer continue digging the hole but must seek ways to climb out," he urged.

Mudavadi encouraged Kenyans to maintain peace, unity, and focus for a better future, urging them to seize emerging opportunities to build a more inclusive and prosperous Kenya.

He reiterated the government's commitment to fulfilling its promises with transparency and accountability.

"Together, we should take advantage of emerging opportunities to build a more inclusive and prosperous Kenya," he said.

At the same time, Mudavadi called on Kenyans to work together for the sake of future generations.

 "I take this opportunity to wish you God’s grace and blessings for a successful 2024," he said.

"Let us continue to bring smiles to the faces of our loved ones and remember the less fortunate in society who need our love and compassion."