Kenya's Bold Step To Economic stability

 The Kenyan government is advancing the Bottom-Up Economic Transformation Agenda (BETA Plan), a comprehensive strategy aimed at fostering economic resilience, enhancing job creation, and ensuring equitable income distribution. 


Dr. Isaack Mwaura, Government Spokesperson, outlined the progress and future direction of the BETA Plan, emphasizing Kenya’s commitment to sustainable development through fiscal discipline, tax reform, and targeted social initiatives.

Fiscal Responsibility and Sustainable Growth
To address Kenya's rising public debt and reduce reliance on foreign borrowing, the government is championing robust domestic revenue generation. Proposed tax reforms under new legislative amendments such as the Tax Laws (Amendment) Bill, 2024 focus on equitable and fair taxation, granting justified tax amnesty, and curtailing tax expenditures that limit resources for essential services. These measures, crafted with public input, aim to secure a stable economic foundation for the nation's future.

Expanding the Digital Economy
With a growing digital marketplace, the government plans to extend the tax base to include digital services like ride-hailing, food delivery, and online professional services, ensuring fair contributions to the economy from both local and foreign service providers.

 The newly proposed "Significant Economic Presence Tax" will target non-resident entities operating within Kenya's digital economy, aligning the country with global best practices.

Supporting Kenyan Workers and Businesses
To enhance disposable incomes and support future savings, amendments propose increased non-taxable employee benefits, including allowances for meals and gratuities. Additional provisions benefit pension savings, healthcare contributions, and affordable housing, aligning tax incentives with critical social goals. Local manufacturers also stand to benefit from government procurement requirements mandating at least 40% of purchases from local suppliers, spurring economic growth.
Healthcare Transformation Through SHA
Under the Social Health Authority (SHA), healthcare in Kenya is shifting towards greater accessibility and affordability. Since replacing NHIF, SHA has registered over 14 million Kenyans, providing care without out-of-pocket expenses at public hospitals across the country. This initiative, aimed at chronic conditions like cancer and diabetes, seeks to alleviate the financial burden on Kenyans and improve quality of life. The government encourages private healthcare facilities to join SHA, further supporting the growing demand for healthcare services.

International Endorsements and Future Stability
In a show of international confidence, the International Monetary Fund (IMF) recently extended a Ksh. 78 billion facility to strengthen Kenya’s fiscal and climate resilience efforts. 

This facility, part of the Extended Credit Facility (ECF) initiated in 2021, underscores the government’s responsible economic policies and its dedication to stabilizing the Kenyan Shilling and enhancing foreign exchange reserves.

Building Public Trust
Dr. Mwaura reiterated the government’s pledge to efficiently and transparently use public resources, assuring Kenyans that revenue generated through tax reforms will prioritize essential services in health, housing, and education.


Comments

Post a Comment

Popular posts from this blog

IYF weekend Academy

Image
 IYF Weekend Academy Season 7 Graduation  Notable Chief guests included Emily Maina who is the Director of Youth Social Development for Youth Affairs at the Ministry of Youth Affairs, Creative Economy and Sports, Rev Yohan Kim and Deputy Governor at Kiambu County. IYF Academy has provided skills to disadvantaged youths. This initiative, a 3 months cohort structure has equipped students with practical skills. Since 2007, IYF has channeled out over 60,000 graduates. Over 5,000 youth graduated with certificates through the IYF Free Academy which offers plumbing, hairdressing, catering, computer packages, fashion and design. The institution is committed to youth empowerment. Young people don't lack potential they lack opportunities and exposure. This institution..... Successful global economies such as USA, Singapore, Scandinavian countries and China have 2 to 3% unemployment. The youth are not just job seekers, they are job creators.  We have the potential to reduce Kenya's ...
Read more

AERC Biannual Plenary Session

Image
  African Economic Research Consortium (AERC) The African Economic Research Consortium (AERC), in partnership with the Central Bank of Kenya (CBK), has announced that the 61st Biannual Plenary Session focusing on the FinTech Revolution in Africa is now scheduled for December 1st, 2024,  in Nairobi, Kenya.  This session will provide a platform for commercial banking leaders to share their successes and lessons  in navigating  challenges and seizing untapped opportunities. Through their insights, we can explore how digital transformation and strategic partnerships, can deepen financial inclusion and add value to economies across the region.” FinTech projected to grow thirteenfold to US$65 billion by 2030 and will have a projected compound annual growth rate (CAGR) of 32% This year’s theme, “The FinTech Revolution in Africa,” reflects the continent’s pivotal role in driving global financial innovation and highlights its potential for inclusive growth and economic t...
Read more

KEHPHPU address to President Ruto

Image
(KEHPHPU) The Kenya Environmental Health and Public Health Practitioners Union has issued an urgent appeal to President William Ruto’s administration to prioritize preventive and promotive healthcare through increased investment and strategic reforms. KEHPHPU Secretary-General Hon. Brown Ashira Olaly, the union commended the government for its progressive legislative achievements in 2023, including the Primary Health Care Act, Digital Health Act, Facility Improvement and Financing Act, and the Social Health Insurance Act. These developments, coupled with the establishment of Primary Health Care Networks, represent positive steps toward a robust healthcare system. However, the union highlighted significant challenges affecting Kenya’s health sector, particularly in the realm of preventive health services. It expressed concern over the persistent underfunding and neglect of preventive healthcare, citing the disproportionate allocation of resources to curative services. Out of the KES 140...
Read more