Yes, chart a way out of the high cost of living

Citizens' hopes that rode on the ability of the National Dialogue Committee (NADCO) team to lower the cost of living could be dashed. Co-chairmen Kalonzo Musyoka and National Assembly Majority Leader Kimani Ichung'wah are yet to agree on contentious issues like taxation and the Housing Levy, a move that has forced the team to stop deliberations to give room for further consultations. 

The government has repeatedly blamed the high cost of fuel on the Russia-Ukraine war and now the Israeli-Hamas conflict in the Gaza. But while this could be true to some extent, it is the taxation regime it has adopted and withdrawal of subsidies on fuel and unga that have triggered an exponential rise in the cost of living.

Additional levies being introduced by the government for services hitherto offered free of charge and hikes in charges have not made things easy for struggling citizens. Notably, salaries have remained constant and, in some cases, have been reduced after Covid-19 exacted its pound of flesh between 2020 and 2022 when it became less of a threat.

It would be injudicious to ignore the role that massive corruption plays in aiding the high cost of living. Two weeks ago, Controller of Budgets Margaret Nyakang'o accused the National Treasury of fuelling inflation through exaggerated budgeting. Moreover, she noted that there was duplication of payrolls and lack of a register for national debt. Clearly, citizens are not getting value for their taxes and remain in the dark regarding what debts they are paying. 

The Opposition has been unequivocal that NADCO must address the high cost of living by, among other things, recommending a reduction in fuel-related taxes, advocating for an eight per cent VAT rate and abolition, or reduction of the Housing Levy. These issues are dear to the taxpayer and must be addressed immediately. The current standoff in NADCO is healthy and should lead to concrete measures out of the present quagmire.