President Uhuru Kenyatta on Friday proposed two major changes in the government in addition to slashing of VAT on petroleum products from 16% to 8%.
During his State of the Nation address, Uhuru noted that such a cut would have a huge impact on the government’s ability to raise revenues hence creating a financing gap.
Firstly, Uhuru proposed a major cut on the government’s expenditure and implementation of other austerity measures on less essential spending across all arms of the government.
In particular, Uhuru identified hospitality, domestic and foreign travel, seminars and training as some of the areas likely to face major cuts.
“As the President, it is my responsibility to put Kenyans first. those living today, and your children who will inherit this country tomorrow.
“The new measures will ensure that the sacrifices made by tax compliant Kenyans are matched by discipline by all members of the public service,” Uhuru stated.
Secondly, the Head of State announced a major increase in funding to Judiciary to expedite the repatriation of proceeds of corruption.
“I have also proposed to increase resources to the institutions mandated to fight corruption and other economic crimes.
“Further, I have increased the allocation to the office of the Director of Public Prosecutions (DPP) as well as the other investigating agencies,” he noted.
The president urged these institutions to work closely together to restore the faith in public institutions.
Uhuru rallied Kenyans to endure short-term pain in order to attain long-term gain: “Fellow Kenyans, we have a country to transform, and we must make bold decisions to achieve our vision,” he concluded.