Former Mandera Senator Billow Kerrow. [Screengrab]
Political economist, Billow Kerrow, has urged the government to genuinely consider opinions from the public and professionals amid public participation on the Finance Bill, 2025. The former Mandera Senator criticised an old trend where sittings to gather views of the public are conducted as a mere formality to meet constitutional requirements.
This, he added, blocks solutions to widespread concerns around the budget, such as its potential to further raise the already high cost of living.
“Sometimes, there is complete disregard for all the submissions. We saw in 2024 when hundreds of institutions made thousands of submissions, but they pushed it aside and went on with whatever they had. That engagement is critical,” said Kerrow on Spice FM on Wednesday, June 4.
“If you look, for instance, at the submission of the Kenya Association of Manufacturers, they outline the impact every measure contained in the Finance Bill is going to have. They disregard this, then in a year or two, they see the impact and start backtracking.”
According to the National Treasury, this year’s tax laws will not result in any increments, but experts have warned that re-categorisation of some products from zero rating to tax-exempt status may lead to higher prices as manufacturers pass their input tax to consumers.
“The devil is in the details. Some of the measures will have a significant impact on the lives of Kenyans and the cost of living. The simple desire to raise more revenue, however small, means more taxes through that Finance Bill,” warned Kerrow.
The National Assembly’s Finance and Planning Committee has been collecting submissions from organisations concerning the government's planned revenue-raising measures and tax regime to be applied in the coming Financial year.
While the sittings have mostly happened within Nairobi, the remaining sessions are scheduled to be conducted in the counties following Tuesday’s public hearings in Busia and Migori. Today, similar sessions will be held in Trans Nzoia and Nandi.
Treasury Cabinet Secretary John Mbadi will present his first budget next week on Thursday, described as a friendly one after the 2024 version met resistance and led to the deadly Gen Z protests. By Dennis Omondi | The Standard
