Azimio La Umoja Thursday warned of tough times claiming the Budget Policy Statement being processed in Parliament is bad news.
The opposition chief Kalonzo Musyoka said Kenyans should be ready for a new wave of taxation that could worsen the situation in the country
“If BPS is anything to go by, Kenyans must tighten their belts because Kenya Kwanza is coming for them in new wave of taxation,” Musyoka said.
“We commit to reject any further taxation by this regime,” he added.
The former Vice President was speaking after chairing the Azimio Summit meeting at Jaramogi Oginga Odinga Foundation (JOOF), Nairobi.
The meeting was attended by National Assembly Minority leader Opiyo Wandayi, DAPK leader Eugene Wamalwa, former Presidential candidate George Wajackoya, ex Governors Mwangi Wa Iria (Murang’a) and Nderitu Muriithi (Laikipia).
They said the meeting focused on three areas namely, the Budget Policy Statement 2024, Affordable Housing Levy Bill, 2023 and the reckless borrowing by the regime. “We have also had an opportunity with our economic council team to share and analyze the general state of our nation almost one half years since Kenya Kwanza imposed itself on the people.”
“We must forewarn Kenyans that as we predicted, the BPS is confirming the tax burden is set to increase drastically,” the team said.
They said the economic proposals, policies and strategies remain flawed and unachievable.
“Kenyans must be ready to tighten their belts because KK regime is coming after them in a second wave of taxes.”
“To the ordinary Kenyans, the Mama mboga, Boda-Boda riders and the people of Mjengo, regime is coming again with a double taxation plan with increased taxes of approximately Sh27,000 per adult Kenyan,” their statement said.
They added the government is proposing advance tax on goods and services supplied to government, VAT on educational services which means an increase in school fees and tax on agricultural produce.
“As a coalition, there are things we are deeply passionate and unrelenting about. To us, the people of Kenya must come first,” they said.
They said the Budget Policy Statement is meant to prolong and worsen the suffering by Kenyans.
Kalonzo said Kenyans will thrive when we cut, not when there an increase of taxes and that BPS reveals lofty figures in terms of revenue with huge deficits.
“We believe that the country will thrive when the regime moderate its expenditure, reduce wastages and adopt a rights, and zero-Based Budgeting approach. The Budget Policy Statement, 2024 is high sounding, vague with promising titles but only intends to raise expenditures and to spend what we don’t have.”
“We also believe that the country will do better when we devolve more funds to the counties in line with the Constitutional provisions,” Kalonzo said.
He said the country will function better when players strengthen the middle class.
The Budget Policy Statement, 2024 he added diminishes the social protection of our people.
“We believe in creating an enabling environment for manufacturing so that more investors can set up in our country and provide jobs for our people. The Budget Policy Statement, 2024 offers little if any in terms of encouraging manufacturing.”
He said potential foreign investors are already fleeing Kenya because of the punitive taxes.
“Despite the rhetoric, the eloquent words, flowery language and the confusing figures, Kenya Kwanza regime remains badly exposed on all fronts.”
“As they present their second Budget Policy Statement, it is clear that we are in a second phase of a reckless race to the bottom,” he said.
All indicators point to the fact that life is deteriorating not improving and the cost of life remains high as the cost of every basic items continues to go up.
“Our conclusion of the BPS is that, it does not meet the constitutional and Public Finance Management Act provisions.
We commit to reject any further punitive taxation imposed on Kenyans by the regime in the name of economic transformation.”
On Affordable Housing Levy Bill, 2023, Kalonzo said it was introduced to the House after the courts twice declared the Housing Levy which is meant to finance the Affordable Housing Program unfair, discriminatory and unconstitutional.
He congratulated the bold Azimio MPs who during the second reading of the controversial Bill remained firm to the wishes of Kenyans and voted against the Bill.
He asked Kenyans to now put on notice the MPs who betrayed their wishes by voting for the punitive Bill.
“It was largely against the wishes of majority of suffering Kenyans. We therefore commit to protect the interest of Kenyans at all times. The proponents of the Affordable Housing Levy Bill, 2023 have christened it as an employment creator but nothing can be further from the truth.”
“It remains a punitive tax collection avenue from the already suffering Kenyans,” he said.
As the Affordable Housing Levy Bill, 2023 moves to the senate, he asked the senators from across the political divide to be patriotic and reject this Bill in toto.
On the Dollar Vs Kenya Shilling he said the shilling has lost its value against the US dollar and lost its value against Tanzania and Uganda shilling.
“Recently announced an artificial situation in stabilizing the Kenya shilling against the dollar.”
“Today the exchange rate is still fluctuating at around Kenya shillings 150 to the US Dollar,” he said.
He said Kenya must never be excited about these artificial, superficial and unsustainable moves by Kenya Kwanza to stabilize the dollar against the Kenya Shilling.
He added the fall and instability of the shilling comes with a great price that includes escalated cost of imports including food and puts tremendous pressure on parents seeking to take their children abroad or those who want to seek treatment outside the countries.
“The free fall of the shilling is therefore a grand betrayal of the people of Kenya by the Kenya Kwanza regime. A perfect example of a race to the bottom by regime.”
Kalonzo said the government has increased spending by over Sh400 billion.
“The regime resorted to more borrowing, ignoring the warnings that we are in debt distress and at the risk of debt default. Without blinking an eye, the regime went against its promise to reduce borrowing and did the complete opposite today KK regime has borrowed close to Sh2 Trillion in just one and half years.”