Kenya 2017 post budget analysis

Kenya's national budget reading came two months earlier than expected this year due to the upcoming general election in August. The country is relying on the projected 1.4 trillion shillings collected by the Kenya Revenue Authority but faces a daunting 3.8 trillion shilling debt margin, which accounts for 52.5 percent of the national GDP. The budget reading has sparked discussions and debates among experts and analysts, raising concerns about the government's ambitious spending plans, revenue collection targets, and the impact on various sectors of the economy. During a recent panel discussion on CNBC Africa, industry experts shared their insights on the budget and its implications. Nomi Iran, a senior policy analyst from the Institute of Certified Public Accountants of Kenya, highlighted the daring nature of the budget and the government's readiness to finance it through local and international borrowing. The panelists emphasized the importance of effective revenue collection, budget planning, and the need for aligning spending priorities with the country's development agenda. One of the key points raised during the discussion was the challenge of timely fund disbursement, particularly to the counties and key sectors such as agriculture. Adun's Mukavani, Chairman of the Transport Sector Board at the Kenya Private Sector Alliance, expressed concerns about delayed payments and inadequate funding for crucial sectors like agriculture, which is considered the backbone of the Kenyan economy. The panelists called for greater support for agribusiness and emphasized the need for more significant investments in agriculture to ensure food security and sustainable economic growth. The discussion also touched on the issue of taxation and revenue collection. The Kenya Revenue Authority (KRA) has been tasked with raising 1.7 trillion shillings, a significant increase from previous targets. The panelists highlighted the importance of plugging revenue leakages and adopting targeted audits to achieve revenue targets. The implementation of the iTax system was praised for its role in improving tax compliance and reducing leakages. The panelists also discussed the government's efforts to secure funding through international loans and domestic sources. Kenya recently secured an $800 million syndicated loan from four international banks and saw a significant number of Kenyans participating in the M-Akiba bond subscription. The government's focus on investment in key sectors such as agriculture, manufacturing, and textiles was also acknowledged, with calls for more substantial subsidies and support for local industries. Looking ahead, the panelists highlighted the need for policy reforms in taxation, investment incentives, and economic stability. The discussion emphasized the importance of addressing challenges such as currency depreciation, inflation, and ensuring price stability for consumers. The experts underscored the imperative of government intervention to stabilize food prices, promote economic growth, and mitigate risks in the face of global economic uncertainties. In conclusion, Kenya's 2017 budget presents both challenges and opportunities for the country's economy. Effective revenue collection, prudent budget planning, and targeted investments in key sectors will be essential to drive sustainable growth, ensure financial stability, and address the needs of the population. As Kenya navigates through economic uncertainties and political transitions, strategic policy interventions and collaborative efforts between the government and private sector will be critical to achieving long-term prosperity and development.