CS Mbadi: No Intention to Increase Taxes on Kenyans for Projects

Cabinet Secretary for Treasury and Economic Planning John Mbadi has stated that the government will not continue to increase taxes on Kenyans to fund developmental projects. Mbadi, who spoke during a privatisation forum held at the Migori Teachers’ Training College (TTC), said that the government cannot continue overburdening Kenyans with more taxes and will instead look for alternative ways like privatisation of government parastatals and selling off government owned companies’ shares to generate more cash for development as well as make Kenya industry competitive in the region. He disclosed that the sale of a 15 per cent stake in Safaricom was intended to unlock resources for long-term infrastructure projects, with the proceeds from the sale expected to be used to support infrastructure investments, such as roads, without increasing the national debt or raising taxes on Kenyans. He also explained that the proposed privatisation of Kenya Pipeline Company (KPC) will unlock billions to enhance Kenya’s regional competitiveness and economic growth. “Privatisation is intended to create more wealth and expand the business environment beyond Kenya by making it an economic hub in the region”, he said. The forum, which was attended by the public, various civil organisations and the students' union from Migori, urged the CS to consider the public participation views with utmost respect to implement their opinion. Mbadi, however, noted that he will welcome constructive feedback on the public financial management practices and policy framework that informs the budgetary process. He said that active participation is essential to ensure the efficient and transparent use of public resources to guarantee funds allocated to development and other uses to achieve their intended objectives. The CS noted that privatisation of government assets is not taxation, but rather an idea that is meant to generate more income, improve efficiency and service delivery to the Kenyan people. During the forum, the public urged the government to ensure 70 per cent of jobs go to the locals when prioritising privatisation of government parastatals, with The New South Nyanza Sugar (New SONY) Mill being one such example. The Migori-based Sugar mill was leased to Busia Sugar, a private entity that has been operating the mill since . Mbadi explained that privatisation of sugar mills like the New SONY will lower commodities and service prices, improve the quality of goods and services, widen consumer choices, increase innovation, reduce bureaucratic delays and red tape, as well as lower the level of corruption. Migori Governor Ochilo Ayacko, who welcomed the CS in Migori, said that it was important for the government to listen to the views of the Kenyan people through public participation to understand and implement only that which Kenyans require. Ochilo said that engaging the public through public participation, especially on the budgetary process, will enable the counties and the nation to understand what the public values most.