Expert: Corruption ‘biggest’ challenge to Kenya's budget implementation

NAIROBI: A leading policy analyst has warned that corruption remains one of the biggest threat to the implementation of the rosy proposals made by the State in the ambitious Sh2.1 trillion Budget.

Kenya Institute of Public Policy Research and Analysis (Kippra) analyst Prof Joseph Kieyah said the Government must safeguard the proposed allocations from embezzlement as the vice was derailing key planned programmes.

Speaking at a post-budget analysis forum at a Nairobi hotel, Kieyah described the budget as a creative ‘give and take’, which targeted at creating jobs for the poor while spending on key enablers of the economy. He said by proposing to invest massive funds in key infrastructural projects, the Government had dealt with key bottlenecks that constrain the economy.

“The idea is to free up the country to the myriad of opportunities Kenya has potential for in trade and investment but which Kenya continues to lose due to inadequate infrastructure,” said Prof Kieyah.

Speaking at the forum, Gerald Githuku a tax partner at the GMK accountants said Treasury faced with limited funds had come up with ‘a very savvy package of spending moves and tax increases.” “From efforts to create jobs and spur the economy to those of widening the tax bracket without necessarily increasing taxes on sections of the economy, Treasury engaged a carrot and stick approach,” he said.

He cited allocation of Sh25 billion to the National Youth Service (NYS), and a proposal to offer tax rebates to employers who offer internship to graduate trainees as measures that would lead to growth of new jobs.

While unveiling the budget statement, Treasury Cabinet Secretary Henry Rotich, said the budget is the extension of the State’s existing solid economic plan “to take Kenya to the next level.”

“We plan to continue to implement our plan to complete the new rail in the shortest time possible, complete existing roads projects, build new roads under a new approach known as Annuity, modernise security apparatus to make Kenya safe and secure, support farmers to protect their incomes, invest in the future by unleashing the potential of Kenyans and support devolution for effective delivery services. This way we will grow our economy, create jobs and reduce poverty,” said Rotich when he presented the national budget before Parliament on Thursday.