The leaders of Azimio la Umoja have put forth a comprehensive plan to address the increasing cost of living during the recent public hearing of the National Dialogue Committee.
Their proposal highlights concerns about the current budget, which heavily relies on raising taxes and substantial borrowing.
According to the coalition led by Raila Odinga, the prevailing high taxes and extensive borrowing have contributed to the rising cost of living.
They emphasize the importance of prioritizing public expenditure to fulfill and promote the rights outlined in Article 43 of the constitution.
Azimio also criticizes the government for contributing to the cost of living hike through budget deficit and currency rate issues.
The depreciation of the Kenyan Shilling, from Sh.120 to US$ in August 2022 to Sh. 150 by September 2023, has led to increased prices of imports, affecting access to essential goods and food imports.
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The coalition points out that the government’s handling of the budget has been contentious, raising concerns about economic management.
They stress that inefficiencies, wastage, corruption, and the misappropriation of public funds have all contributed to the rising living expenses.
Azimio suggests that addressing issues such as eradicating corruption, wastage, and holding public officials accountable can save taxpayers billions of shillings, which can then be redirected towards reducing the high cost of living.
The leaders also criticize the excessive expenditure on domestic and foreign travel, totaling 193 Billion shillings, and suggest reallocating these funds to more pressing concerns, including social protection, home taxes, and resources for counties.
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Furthermore, they express doubts about achieving the aggressive ordinary revenue target of 2.57 Trillion shillings due to sluggish economic performance.
To stimulate output, the Raila-led Coalition proposes lowering loan interest rates and implementing tax breaks on fuel, food, energy, SMEs, and the housing levy.
They also recommend a comprehensive review or repeal of the Finance Act 2023 and the introduction of necessary subsidies, particularly for fuel, energy, and production, for a specified period.
Additionally, the leaders call for the enactment of essential legislation and policy guidelines to curb the misuse of public funds by state officials.
The proposal aims to alleviate the burden of high living expenses on Kenyan citizens and promote fiscal responsibility within the government.
