Kenyans hopeful as Treasury set to unveil budget Thursday

Treasury Cabinet secretary Ukur Yattani is Thursday expected to unveil the 2020/2021 budget against a backdrop of an economy already battered by severe floods, locusts’ invasion, and the Covid-19 pandemic.

Kenyans are however hopeful that it will be a budget that will reduce the cost of living.

Those who spoke to KBC Channel One said movement restrictions and social distancing recommendations have led to reduced business and income hence the need for the government to propose a mwananchi friendly budget.

In Nakuru, a section of residents have petitioned the Treasury to reduce taxes and regulate prices of essential commodities to cushion citizens from the effects of corona virus disease..

Chairman to Nakuru Residents Association Wycliffe Aguda says a proposal to increase the residential income tax rate from 10 per cent to 15 per cent in the budget estimates for 2020/2021 should be reconsidered as it will put pressure on landlords, who will be forced to pass on the tax burden to tenants through increased rents.

Aguda stated that following an amendment on Tax laws in April this year other tax payers were awarded tax reductions to cushion them from adverse economic effects of Covid-19 and that the proposed residential income tax will make it more difficult for landlords to give concessions and discounts to their tenants.

Treasury’s ambitious 3.2 trillion Budget which includes redemption of 441 billion shillings for maturing bonds, hopes to cushion Kenyans from a health hazard that is threatening to turn into an economic catastrophe.

The CS will be looking to collect revenue totalling 1.88 trillion shillings from the Consolidated Fund to meet the expenditure during the year ending June 30, 2021, of which 1.62 trillion shillings will be ordinary revenue.

This is a dip compared to the approved 2020 Budget Policy Statement where total revenue was projected at 2.1 trillion shillings with ordinary revenue estimated at 1.85 trillion shillings.