Prime Cabinet Secretary Musalia Mudavadi is calling on Kenyans to refrain from politicizing the Finance Bill 2023, emphasizing that it plays a crucial role in addressing the ailing state of the economy.
In expressing his views, Mudavadi highlighted that the government is faced with difficult choices and cautioned that resolving the economic challenges will require a considerable amount of time.
“We are working towards tightening the loose ends and sealing the loop-holes in procurement processes and procedures. The Finance Bill 2023 is proposing some fundamental measures that will help in addressing the bottle-necks that have been riddled by outrageous procurement processes where what you think has been procured cheaply turns to be very expensive in the long run.” He said.
Mudavadi referred to his past experiences in government and stated that the issue of Value Added Tax (VAT) has been misunderstood. He added that the proposals put forth in the Finance Bill 2023, which have received mixed reactions, can resolve the problem permanently.
“The Government has shifted its subsidy policy from consumption to production. The few beneficiaries on the consumption side are crying out loud. For the Government, the principle of majority beneficiary applies, and through the Finance Bill, the Government proposes to provide exemptions under the VAT Act for fertilizers and inputs or raw materials locally purchased or imported by manufacturers of fertilizers. This will lower the cost of fertilizer, which will in turn lower the cost of production,” explained Mudavadi.
The Prime CS emphasized that the current government under President William Ruto’s leadership is taking significant measures to expand the tax base. This move is aimed at increasing the country’s revenue and improving its financial standing.
“This is the only way we will be able to boost agricultural sector operations, enhance food production and create jobs for us to stir the economic growth,” he said Mudavadi.
Mudavadi made the remarks in Mombasa when he presided over the 40th Annual seminar for the Institute of Certified Public Accountants of Kenya (ICPAK).
He urged Kenyans to remain steadfast as the government is burning the midnight oil to ensure it corrects the drain, pain, and strain on the citizen’s livelihoods.
“I have continuously cautioned Kenyans to gird themselves for hard times now and in the near future. As a government, we do not want to lie and give false hope and promises. I am being pragmatic, realistic, and forthright in my assessment, that resuscitation of the economy will take at least two years or thereabout,” said Mudavadi.
“We all know things went bad before Kenya Kwanza took over and are still bad as we speak today. This experience should prompt us to work together to mitigate the dire situation,” said Mudavadi.
According to Mudavadi, the Government is deploying all the measures within its power to address the challenges and foster a resilient and inclusive economic recovery process.
“As a government, we are not sleeping on the job. The commitment to prioritize the lives and livelihoods of Kenyans above all else is our key priority,” he affirmed