Ruto’s proposals on budget set the stage for clash with Uhuru

Deputy President William Ruto has upped the stakes in his war with President Uhuru Kenyatta, with more proposals targeting the runaway cost of living that will upset the Head of State’s last financial plan.

Under the Kenya Kwanza Alliance, the DP wants the budget amended further to cushion farmers by allocating a Sh5 billion subsidy to lower the cost of fertiliser, as well as Sh2 billion for drought mitigation.

This is in addition to increasing allocations to counties to Sh495 billion, up from Sh370 billion, as well as compelling the government to pay for a proposed teacher development programme.

The DP, in a statement read by Amani National Congress (ANC) leader Musalia Mudavadi, wants measures put in place to cushion farmers and pastoralists against the ravaging drought.

Dr Ruto’s camp also lashed out at National Treasury Cabinet Secretary Ukur Yatani, saying, he had violated the law by not allowing the National Police Service to control its finances and failing to put into place a Judiciary Fund.

Budgetary adjustments

Speaking on behalf of the alliance at Alba Hotel in Meru on Monday on the second day of their tour in the county, Mr Mudavadi read a statement in which the coalition has tabled a raft of budgetary adjustments that could be the next political battlefront between Dr Ruto and Mr Kenyatta.

Mr Mudavadi was flanked by Dr Ruto, Ford Kenya leader Moses Wetang’ula, Senators Mithika Linturi (Meru) and Kithure Kindidki (Tharaka Nithi) and several MPs. The proposals are intended to appeal to young voters as well as farmers in the rural areas.

“An additional Sh5 billion should be provided in the budget to buy fertiliser and provide subsidy to cushion farmers against high farm input prices. We envisage a situation where fertiliser prices reduce from the current Sh6,000 to about Sh2,500 per bag,” Mr Mudavadi.

Kenya Kwanza has also proposed doubling of the allocation for the Higher Education Loans Board to allow more students in universities and tertiary institutions to benefit.

Appeal to young voters

This is seen as an appeal to young voters, most of whom are in universities and polytechnics. Mr Mudavadi said the deteriorating drought situation in the country was worrying while the allocation for the livestock off-take programme was reduced from Sh249 million in 2021/2022 to Sh140 million in 2022/2023.

He said the reduction would hit pastoralist communities hard, with the National Drought Management Authority estimating that four million people will be affected in several counties including Baringo, Isiolo, Garissa, West Pokot, Makueni and Mandera.

Livestock offtake

Mr Mudavadi said an additional Sh2billion for the livestock off-take programme should be included in the budget for 2022/2023 financial year.

Kenya Kwanza leaders said the deteriorating security situation in the country could be attributed to underfunding of the National Police Service and lack of autonomy.

Mr Mudavadi said the constitution envisages an independent police service and not one “micromanaged” by the Interior ministry where the accounting officer is the principal secretary.

He added that the police should be given financial autonomy which can only be achieved by allowing the service to manage its own budget.

“The CS for National Treasury should obey the constitution and designate under Article 67 of the Public Finance Management Act 2012, the Inspector General of Police as the accounting officer which will ensure autonomy of the service,” he said.

The ANC leader said Article 173 of the constitution established a Judiciary Fund which has never been honoured.

“The National Treasury has continued to violate the constitution and we demand that Sh12 billion should be set aside to operationalise the Judiciary Fund. This will ensure autonomy and help fight corruption as well as clear the case backlog with some cases dating back 40 years,” he said.

Blamed ‘Handshake’

At the same time, Dr Ruto’s camp blamed the ‘Handshake’ for the ballooning public debt, saying,  the political pact between President Kenyatta and Orange Democratic Movement leader Raila Odinga had led to lack of checks in public spending.

The alliance wants Mr Yatani not to take any more loans. Mr Mudavadi said the debt had ballooned from Sh1.8 trillion in June 2013 at the end of President Mwaki Kibaki’s term, which accounted for 39 per cent of the Gross Domestic Product to Sh11.7 trillion.

“This is over 100 per cent of our GDP and exceeded the Sh9 Trillion ceiling without seeking Parliament approval which is contrary to the Constitution and Public Finance Management Act of 2012,” he said.

The ANC leader said before the Handshake in March 2018, the public debt stood at Sh4.5 trillion while it has now ballooned to Sh11.7 trillion.

“The question we are asking is, was the handshake a licence to burdening Kenyans with punitive public debt, taxes and high prices of commodities? We also demand that the CS Treasury should not sign any new loans including floating sovereign bonds,” Mr Mudavadi said.

“We are aware of a proposal by the CS for National Treasury that will see the ceiling raised to Sh12 trillion and we are asking Parliament not to approve it. The National Assembly and Senate must avoid any further approval of any debts that will overburden Kenyans,” he added.

Money for small businesses

Speaking at the Kenya Methodist University where the deputy President held an economic consultative forum with members of the business community, economist Dr David Ndii said a Kenya Kwanza administration would set aside Sh100 million per constituency to improve small businesses.

“What we are proposing is a revolving fund that will help businesses grow so that we can have more people paying taxes. The current situation where the taxman keeps hounding a few businesses demanding taxes is not tenable,” said Dr Ndii.

Representatives of farmers expressed concerns that costs of farm inputs including dairy feed and fertilisers had increased to a level that they were finding it difficult to earn an income from their farming activities.

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