The National Treasury has warned Kenyans of tough economic times in the New Year’s 2023.
Cabinet Secretary Prof Njuguna Ndung’u said there were signs that 2023 will be a tough year for taxpayers and asked all and sundry to tighten their belts.
Speaking during the public hearing of the budget-making process that brought together stakeholders from different sectors, including representatives from the Executive and the Legislature, the CS called for the implementation of strict austerity measures, including the suspension of new development projects.
“From all the things we have analyzed… 2023 is not looking good, there are clear signals that it is going to be a tough year,” said the CS.
The former Central Bank of Kenya (CBK) governor said the government will focus on revenue collection as President William Ruto begins to craft his first budget since he took the oath of office.
Leah Muthoni: What I have learned from saving money through Sacco
“2023-2024 medium term will be revenue collection so that we bring on board additional revenue..,” he said.
As the process to craft President Ruto’s first budget for the 2023 – 2024 Financial Year begins, the ballooning wage bill that stands at over Sh. 900 billion remains a major hindrance to the delivery of services with Treasury and Parliament’s budget-making office calling for measures to contain wage bill both at the national and county levels.
“The salaries that pay us is approximately Sh. 900 billion, the recurrent to maintain us is about Sh. 600 billion, we must tame this appetite, we must look at our revenues,” says Budget Committee Chair Ndindi Nyoro.
This comes as President William Ruto’s government is under intense pressure to increase annual revenue collection to Sh. 3 trillion by 2023 to help close the gap for heavy borrowing.
The Head of State said Kenyans have to embrace the culture of saving to help the country fund its developments instead of relying on external loans. He also promised to seal loopholes being used by some people to evade paying taxes
“I will lead from the front to reduce Kenya’s over reliance on borrowing. We currently pay debts close to Sh. 1.4 trillion per year, which must end as we look for our own money,” he said in Kitui on October 23, 2022
