Cost of living not a priority to Kenya Kwanza gov’t, Okang’o remarks
A screengrab of Azimio Secretary Fred Okang'o on Citizen TV's Daybreak Show on Monday, November 27, 2023.
Azimio Secretary for Political Affairs Fred Okang'o has expressed dissatisfaction with the Kenya Kwanza government's handling of the high cost of living in the country.
“I strongly believe that there was an opportunity for giving solutions that were going to address the cost of living in the short, mid and long term. Unfortunately for Kenya Kwanza, if you look at their issues, it appears that the cost of living was not a priority to them,” Okang’o said.
Speaking on Citizen TV's Daybreak show early Monday, Okang'o emphasized that despite Azimio Kenya Kwanza did not prioritize these measures in the National Dialogue Committee (NADCO).
He argued that implementing these proposals could save over Ksh.230 billion, providing much-needed relief to citizens grappling with the rising cost of living.
“We strongly believe our proposals, among them scrapping the Housing Levy, reducing VAT from 16% to 8% would save us a lot of money. Our projection was showing that if we do all these things, we would actually save over Ksh.230 billion that could be used in reducing the high cost of living,” he stated.
Okang'o further suggested that cutting Government travel expenses and addressing alleged corruption could contribute to substantial savings.
Joining the discourse, Kathiani Member of Parliament Robert Mbui criticized the government's taxation approach particularly on fuel, highlighting the adverse impact on Kenyans.
“This regime thinks that when you tax people excessively, you collect more money. The matter of fuel is one case in point, they doubled the VAT on fuel and the collection from fuel has dropped because people have stopped driving more,” Mbui said.
Mbui questioned the economic advisor of the Kenya Kwanza regime, arguing that excessive taxation leads to reduced disposable income, hindering economic growth.
The Deputy Leader of Minority in the National Assembly further proposed amending the Finance Act to eliminate tax increases, fostering a more favorable business environment.
“If they were to amend the Finance Act and scrap the 18% they increase and do away with the increase in the turnover tax they proposed, business environment would probably improve and that would mean that the country would be in the right trajectory,” he noted.
However, Belgut Member of Parliament Nelson Koech countered these views, accusing some critics, including Mbui, of complacency during alleged resource plundering in the country.
“In fact honorable Mbui cheered along as the resources of this country were being plundered,” Koech accused.
The legislator defended President William Ruto's efforts to lower the price of essential commodities, such as maize flour (Unga), and expressed frustration that the achievement was not acknowledged.
“When were doing elections, one of our rallying calls was we were going to bring the cost of Unga to Ksh.200; now that that cost has come down, it has been brushed aside,” he said.
Koech also blamed the previous regime, under President Uhuru Kenyatta, for imprudent financial practices and borrowing money to sustain a lavish lifestyle.
“During the dying days of the previous administration, so much money was imprudently used. We had no discipline of fiscal space; we are paying for the loans of people who lived large on borrowed money. That is the cost of living,” he said.
He cautioned against reducing the fuel levy, as it plays a role in servicing the country's debt.
Further contributing to the conversation, Mbeere North Member of Parliament Geoffrey Ruku called for scrutiny into the expensive cost of power in Kenya.
He highlighted the impact of independent power producers on electricity prices and emphasized the need to address this issue to put Kenya on the right trajectory.
“Why do we have a very expensive power in the nation, compared to other nations in the region? It is because of independent power producers, and that has not been addressed in this report,” he posed.
Ruku stressed that addressing the cost of power is a crucial step in lowering the overall cost of living, particularly in rural areas that have faced persistent challenges with electricity access since independence.
“Most of the villages are in the dark from 1963 up to today. If we are talking about lowering the cost of living, let’s talk on serious recommendations, not trying to cut the Fuel levy, which helps in the maintenance of our roads,” he said.
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