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North Rift residents welcome budget, but frown at housing tax

A man is arrested for attempting to demonstrate outside the National Treasury ahead of the delivery of the 2023/2024 budget

A man is arrested for attempting to demonstrate outside the National Treasury ahead of the delivery of the 2023/2024 budget policy statement by Treasury Cabinet Secretary Prof Njuguna Ndung'u on June 15, 2023.  North Rift residents have welcomed the budget, but frowned at the housing tax.

Photo credit: LUCY WANJIRU | Nation Media Group

What you need to know:

  • Ms Esther Akai, a grocer at Lodwar Fresh Produce Market, said the government should put in place measures to plug corruption loopholes 
  • Mr Fredrick Rono in Trans Nzoia said the fertiliser subsidy will help farmers increase production and improve the country's food security
  • Mr Kennedy Lutukai, a Jua kali trader, commended the government for allocating Sh10.8 billion to the Hustler Fund
  • Bodaboda operators in Nandi county said they expected the government to reduce the cost of fuel by Sh20 per litre to reduce the high cost of living
  • In West Pokot, Mr Julius Onala rejected Kenya Kwanza's first budget, saying an increase in fuel prices will affect the common man

North Rift residents have welcomed the 2023/2024 budget estimates, but some have frowned at the housing tax.

In Turkana County, Mr Simon Ekiru, a boda operator in Lodwar town, said the government should have scrapped the housing programme altogether, which is now being funded through taxes. 

"Most of us in Turkana are not interested in multi-storey buildings that will only benefit the developers and not the traders. The money allocated to the project should be in the form of grants that will support businesses owned by the youth, women and people with disabilities and also ensure that fuel is affordable," said Mr Ekiru.

Ms Esther Akai, a grocer at Lodwar Fresh Produce Market, said the government should put in place measures to plug corruption loopholes so that taxes collected can go to reducing the cost of living.

"The government needs to collect taxes, but it should reciprocate with good services. They should ensure that there is better security along the Kitale-Lodwar road so that our businesses are not disrupted because we get most of our fresh produce from Kitale," said Ms Akai.

Farm inputs

In Trans Nzoia, farmers commended the inaugural Kenya Kwanza budget for allocation for farm input subsidies and called for an increase in the allocation for the fertiliser subsidy.

The government has allocated Sh5 billion for the fertiliser subsidy.

However, some farmers told Nation.Africa that the 2023-2024 budget proposals for agriculture will not fully save farmers from the high cost of production.

Mr Fredrick Rono said the fertiliser subsidy will help farmers increase production and improve the country's food security.

"This is a good initiative to help farmers, but it should be expanded. The high cost of inputs has been a big challenge for us," he said.

Mr Kennedy Lutukai, a jua kali trader, commended the government for allocating Sh10.8 billion to the Hustler Fund, saying it would help small traders to get easy loans.

"Let the government give more funds to boost our businesses. This will help us get out of poverty," he said.

Residents urged the government to take steps to reduce the cost of basic food items.

A section of residents supported the government's plans to reduce import taxes on food items.

"We want President Ruto to now fully implement his bottom-up economic model to ensure that we, the ordinary Kenyans, live a better life," said Mr Peter Wafula.

Fuel cost

In Nandi County, boda boda operators said they expected the government to reduce the cost of fuel by Sh20 per litre to reduce the high cost of living.

Kenya Union of Civil Servants county secretary John Agaga supported the budget and urged Kenyans to give President William Ruto more time to fix the economy.

He said government workers were happy that counties had been allocated Sh385 billion and urged governors to ensure proper use of the funds.

In West Pokot, Mr Julius Onala rejected Kenya Kwanza's first budget, saying an increase in fuel prices will affect the common man. 

"Fuel is everything because it will affect food and transport," he said. 

Mr Antony Yegoh lamented that alcohol prices will increase.

"It will force me to stop drinking because a bottle of beer will go from Sh250 to Sh300," he said.

Mr Ashiono Wendo, a trader in Kapenguria town, is happy that the cost of solar energy will go down.

Cut government spending

Mr Evans Kibet, the coordinator of the Rift Valley Budget Hub, said the attempt to raise nearly Sh3 trillion through the Kenya Revenue Authority was a tall order based on historical performance.

"The highest they ever raised was Sh2.1 trillion," he said.

He said the government was spending beyond its means, citing the appointment of chief administrative secretaries.

"If the government is keen on austerity, it should also minimise unnecessary spending," he said.

By EVANS JAOLA, SAMMY LUTTA, TOM MATOKE, FLORAH KOECH AND OSCAR KAKAI