Government Makes a Radical Step Towards Transparency With Finance Bill Townhall

In learning from the mistakes of the past, the government has enhanced transparency on the publishing of this year’s finance bill. In previous regimes, government budgeting was a huge surprise that people only got to know about on the day the budget was released. While this process had all our fathers glued to the TV to see where the winds of change were blowing, it was a source of emotional tension which reached a boiling point in the Maandamano Tuesdays of yesteryear. To rectify this, the current government has organized a series of townhalls where Treasury CS John Mbadi and 4 of his director generals explain all the incoming changes before they hit our collective wallets.

Highlighting the process

CS Mbadi explained how the budgeting process commenced last August with a circular distributed to Ministries, Departments, and Agencies (MDAs). This was followed by the crucial Budget Review and Outlook Paper in September. This document serves as a comprehensive assessment of the outgoing financial year’s performance, providing vital insights into the nation’s economic trajectory and future projections. However, for now the document remains a draft, subject to public participation until the Finance Bill finally gets signed into law

The effect on our pockets

Mr. Mbadi emphasized that there will not be much additional revenue collection this coming financial year. We’re talking about 20 billion extra, which comes to about an extra 33 shillings every month that the government will be asking from Kenyans this time around. The main objective of this finance bill is to create a predictable tax policy for business people to be able to plan around.

Equity of resource distribution

Yussuf Adan Haji, the chairman of the national cohesion and equal opportunity committee was quick to add the importance of inclusivity in the budget process. Haji stressed the critical need for equity and ensuring that the budgetary considerations adequately address the needs of marginalized communities within Kenya.

Echoing this sentiment, the Inter-Religious Council of Kenya (IRCK) noted a positive shift towards greater public participation in this year’s budget formulation, suggesting that the government has taken lessons from past experiences.

Public engagement

The panel took in questions from key stakeholders in the vital boda boda, small scale traders and students sectors. The session showed how it can be a delicate balancing act of managing expectations of all the people who support the government. Everyone wants their special interest spared from the taxman’s grasp, but keeping everyone happy both inside and outside the government is no mean feat