The Citizen: Alternative Budget 2019

The Budget policy statement indicates that Kenya’s economic growth has remained strong and resilient against the backdrop of emerging global challenges, unfavourable weather conditions and political uncertainty. However, the economy remains vulnerable to both domestic and external shocks. The Kenyan government should therefore employ prudent management of risk as required by PFM Act, 2012. On the principle of maintaining a reasonable degree of predictability with respect to the level of tax rates and tax bases, the Government should continue to carry out tax reforms through modernizing and simplifying tax laws. In order to lock in predictability and enhance compliance with tax system, the Government through the Finance Act, 2018, amended the Income Tax Act, Excise Duty Act, VAT Act and the Tax Procedures Act. In November 2018, the National Treasury and Planning launched the Third Medium Plan (MTP) 2018 - 2022 of the Kenya Vision 2030 that focuses on transforming lives through advancing socio-economic development through the “Big Four” Plan. The third MTP advocates for the strengthening of intergovernmental relations between the National and County Governments as key towards ensuring efficient and effective service delivery These proposals are therefore intended for consideration by the Treasury with the view that they will contribute to maintaining Kenya in its current economic growth and in contributing to wealth creation and poverty reduction as well as the Big Four Agenda under the Jubilee administration.