THE RISE AND RISE OF AFRICA'S SON UHURU KENYATTA
Uhuru Kenyatta-son of Kenya´s founding president, the late Mzee Jomo Kenyatta is definitely cut out for bigger things; the popular budget he read recently as Kenya´s Finance minister has boosted his image.
Uhuru Kenyatta is the Deputy Prime Minister in this East African country, and the Gatundu South Member of Parliament. Gatundu South is located in Central Kenya.
Buoyed by his intellect and wisdom, Uhuru has notably followed his late father´s footsteps in terms of charisma, and principles.
Many a times, Uhuru has hypnotized crowds in public gatherings with his eloquence.
His star is on a meteoric rise to political stardom and from the look of things, there is no stopping him. The sky is the limit.
A firm believer in the democratic tradition, Uhuru Kenyatta is respected for his 2003 decision to concede defeat after he lost to President Mwai Kibaki.
Uhuru was vying for the presidency on a KANU ticket, while president Kibaki was riding on the National Alliance Rainbow Coalition boat.
Besides being a stickler to parliamentary Standing Orders, Uhuru is known for his managerial acumen, discipline and responsibility.
His recent budget was popular with ordinary Kenyans and particularly teachers who will benefit from huge salary increases. The entire teaching fraternity has thrown it´s weight behind Uhuru.0020
UHURU Kenyatta unveiled a generous stimulus package, dishing out billions mainly to the countryside. The minister hopes to lessen the suffering of Kenyans without raising a single cent through taxes, choosing instead to target his cabinet colleagues by withdrawing their fuel-guzzling limousines.
Without raising taxes, even the so-called sin ones, the minister remained confident the Government will finance the budget, including the Kshs. 109 billion, which will be covered through domestic borrowing. In austerity measures aimed at containing wastage within government, Uhuru put a cap on the type of vehicles allocated to cabinet ministers, permanent secretaries and other senior officials at one vehicle not exceeding 1,800 cc.
He ordered accounting officers to surrender the excess vehicles to the chief mechanical and transport officer, adding that they will be put on sale by September to generate funds for crucial programmes such as resettling internally displaced persons.
He also announced a moratorium on purchase of new Government vehicles save for those meant for security agencies, saying others would only be allowed to do so in exceptional circumstances.
The minister also drastically reduced expenditure on various goods and services in government ministries, which, he said, would not affect service delivery.
He reduced expenditure on furniture and fittings by 80 percent, advertising and publicity (60 percent), telephone (40 percent), hospital supplies and services, including for government appointed task forces (20 percent) and domestic and foreign travel (10 percent).
"Mr. Speaker, let me remind Hon. Members that these are difficult times. And difficult times call for bold decisions," he said.
The government will also introduce the use of fuel cards for the purchase of fuel for government vehicles, saying this would significantly reduce the amount of money the government uses on fuel.
The minister said treasury has been directed to launch a comprehensive audit of the payrolls of all organizations paid through the exchequer. He said the report would be ready by October.
In his budget, Uhuru adopted a devolved system allocating huge chunks of money to the constituencies, which, he said, is in line with a fiscal stimulus aimed at creating employment and ensure social stability and equitable distribution of resources.
The move, which was warmly welcomed by members of parliament, will enable various programmes to be implemented through the constituency development fund (CDF) mechanisms.
Unlike previous budgets, however, the minister declined to reduce taxes on essential commodities such as maize flour, bread and sugar, saying the strategy had failed to work since shopkeepers never passed the reduction to consumers.
Instead, he said he was focusing on improving the business climate so as to spread the benefits of the government´s taxation policies. However, it was a reason to smile as his budget spared the needy.
Uhuru Kenyatta allocated Shs. 105 million per constituency as a conditional economic stimulus or resilience package towards financing infrastructure development covering education, health care and other development projects.
In line with his devolved strategy, the minister further allocated Shs. 20 million to each constituency for construction and equipping of a health centre; Shs. 30 million for construction of one secondary school as a centre of excellence per constituency and Shs 10 million for each constituency for construction of fresh produce and wholesale markets.
In addition, he allocated Shs. 2.5 million per constituency to construct jua kali (small-scale)sheds and a further Shs 1 million for each constituency to equip them to boost youth employment.
And to ensure that the common man continues to enjoy the good work done through the CDF, the government allocated Shs 12 billion to the fund.
With this allocation, each constituency will receive an average of Shs. 60 million to finance various development projects.
The minister said that he will be proposing amendments to the Roads maintenance Levy Act and the Kenya Roads Board Act to allow 22 percent of it to be used for the maintenance of the constituency of roads.
Women and youth were not left behind either with the minister increasing their kitties by Shs 500 million each. He also moved to address the plight of IDPs by allocating Shs 2.2 billion for the resettlement programme and Shs 500 million for reconstruction of their destroyed business.
Regarding taxation, the minister proposed that the excise duty regimes on spirits be changed from Shs 7 per 1 percent of alcohol per litre to Shs 120 per litre or 65 percent.
In addition, excise duty on wine will be changed from Shs 7 per 1 percent of alcohol per litre to Shs 85 per litre to Shs 70 per litre for 50 percent whichever is higher.
The minister also said sugar development levy will be removed on imported raw industrial sugar so as to lower the cost of production.
The minister also said sugar development levy will be removed on imported raw industrial sugar so as to lower the cost of production.
The minister noted that soft drinks have become very costly and in order to make them affordable and to encourage their production, he reduced excise duty on water by 5 percen, while excise duty on carbonated soft drinks and juices will also be reduced to 7 percent.
However, the minister zero rated value added tax on locally produced and ginned cotton to encourage the expansion of the sector.
To encourage the growth of the film industry, VAT on television cameras digital cameras and video cameras will be removed,while all taxable goods and services offered to film producers will be zero rated for VAT to promote the country as a film destination of choice.
The minister also zero rated VAT on all telephones for cellular or other wireless networks to make them affordable.
In order to support the Dairy sector,tax on heat insulated milk tanks will also be zero rated for duty and VAT, while VAT on power generators and generating sets will be zero rated to make power available to homes and industries.
Refrigerated trucks and parts for agricultural horticultural and forestry machinery will also be zero rated for VAT, while bicycle parts will be zero rated to make them affordable and ease transport in many parts of the country.
Import duty on spare parts, second hand clothes locally known as ´Mitumba´´ and jewellery had also been exempted.
To make cosmetics and beauty, he proposed to reduce the excise duty from 10 percent to 7 percent. All these measures, he said would ensure that the products become affordable for the average Kenyan.
There were also incentives for local companies wishing to list on the Nairobi stock exchange after Uhuru proposed to reduce the (listing fees) by 50 percent to 0.15 percent of their capital investments.
Uhuru said his budget would have a Shs 109 billion hole which would be filled through domestic borrowing. There is speculation that if the retirement benefits authority (RBA) Act is amended, then the government could access the pension money to finance its projects.
In his speech, he said a review of the Act would see new pension investments put in government securities and infrastructure bonds. This will ensure good returns to the investors and discourage investments in dubious pyramid schemes.
And as part of government stimulus plan, the government allocated a substantial amount of money on infrastructure projects; the government has allocated Shs. 140 billion to cover roads, rail ports and broadband and energy.
To ensure that the Mombasa port is efficient,Uhuru Kenyatta said plans are underway to dredge the port to make it accessible for bigger ships, while the ongoing work on the construction of a second container terminal will be accelerated.
The minister said that he has allocated Shs. 3 billion to initiate the project to make a road bed for railway line development maintenance eligible for funding ,and in consultation with the minister for Roads, he will be proposing amendment to the Roads maintenance levy Act and the Kenya Roads Act towards the same.
He noted that the construction of a new railway line will significantly reduce the maintenance costs of the northern corridor.
As far as maintaining law and order and security provision is concerned, the government will enhance community-policing by engaging the youth to work under the guidance of the regular police force in collaboration with the chiefs to strengthen security at the constituency level.
He said the government has allocated funds to purchase motorized bicycles for use by the local chiefs and youths engaged in community policing.
"This initiative will inculcate a sense of responsibility and discipline in the youth and as a platform for recruitment in the disciplined forces,´´ he said.
To address the challenges facing the private sector,on that will empower the business regulatory unit legal power to vet and recommend new levies and make operationale – registry for business licenses and fast track the ongoing business licensing reforms.
The minister also directed that the pubic procurement oversight authority 9PPOA) makes appropriate regulations that will enable small and medium enterprises to participate in government tenders.
"These regulations should ensure that contracts awarded through the CDF and other development funds are reserved for tenderers who are located and operate in those regions except where such local capacities are not available,´´ he said.
DEPUTY prime Minister and minister for finance Uhuru Kenyatta´s proposals in this year´s national budget received enormous applause from different stakeholders only minutes after it was presented.
Several members of parliament, both current and former and even envoys, termed the budget as ´´exceptional´´ and one that can change the face of the country if properly implemented.
Former Justice minister and Gichugu MP Martha Karua, an avowed critic of the Kenya Government since her resignation, termed the budget as one that deals with the real issues in a bold manner.
"This is an excellent budget. It has taken very bold steps to address the real issues in a bold manner. If properly implemented, it can change the face of Kenya,"she said.
Her sentiments were echoed by Sports minister Helen Sambili, who besides welcoming the funds allocated to the youth, said the transfer of development funds to the constituency level was a major achievement for the common person.
Lugari legislator Cyrus Jirongo applauded the changes in the pension´s funds saying they will give such funds better credibility.
"These proposed changes especially in the pension funds are very important. Such things like discount securities, Nyaga stock brokers and all that will now be prevented. This money will now go to treasury bonds,´´ he said.
Jirongo further welcomed Uhuru´s direction that senior government officers cease using vehicles with an engine capacity that exceeds 1800cc with immediate effect.
This, among others, he said, would reduce wastage of public funds that can instead be channeled to other development projects.
However, former Internal Security minister Chris Murungaru, while supporting the budget, said although it contained a series of very beneficial proposals, a budget is merely a statement of intention that needs to be properly implemented in order to realize its objectives.
"This budget is classic, but its implementation is even more crucial. A budget is simply a statement of intention," he said
Molo MP Joseph Kiuna, on his part, described the budget as "the best one I have ever listened to in the history of this country"
Kiuna said the move to include funds to re-settle the internally displaced persons was particularly commendable.
"It was a wonderful budget the best I have seen in the history of Kenya. It gives proper attention to the common person," he noted.
Former Siakago MP Justin Muturi described the budget as one that gives people at the grassroots adequate powers to manage and control development in the respective areas.
"people will now have powers to control and even know what belongs to them. They will have a chance to decide what is of more priority," he said.
Justice assistant minister Kipkorir Cheptumo welcomed the directive on motor vehicles saying it will drastically reduce misuse of public funds.
Cheptumo, while describing it as a people driven- budget, further said it was likely to be a unifying factor, since it ensured equitable distribution of resources through devolution.
"There are several striking issues about this budget that I find to be people driven. It even takes care of persons with disabilities. It demonstrates the government´s commitment to reforms through allocating money for agenda item four,"he said.
Outgoing German ambassador Walter Lindner called on politicians to change their attitude in order to achieve the objectives of the budget which, he said, was a very well- prepared item.
A member of committee of experts and former nominated MP Njoki Ndung´u welcomed an increment in the women´s kitty which, she said, would help women throughout the country to contribute to the growth of the economy.
The education and health sectors also benefited immensely form Deputy Prime Minister Uhuru Kenyatta´s massively ambitious and revolutionary budget.
The two sectors benefited from the ministers mode of devolvement of funds with each constituency getting substantial amount of funds from treasury for its programmes.
In education, each constituency will receive Shs. 7 million to build two primary schools complete with water harvesting and storage facilities. The treasury will disburse a total of Shs 1.5 billion for the exercise.
The minister also announced a disbursement of Shs 6 million for construction of one secondary school per constituency, which will be a ´´centre of excellence.´´ Each constituency will get KShs 30 million for the project.
"Mr. Speaker, having put pupils back to class through free primary education and free tuition in secondary schools, our focus is now on how to improve quality of education thought the country,"said Uhuru Kenyatta in his speech.
He noted that for far too long, only a few schools have enjoyed the privilege of being referred to as Centres of excellence.
Uhuru Kenyatta also moved to create jobs in the education sector by pledging 6 million shillings for each constituency for employment of 50 teachers for each constituency.
He further pledged more funds for employment of 10 secondary teachers for each constituency. The teachers will be employed on contract terms.
He further said that every constituency will get Shs 6 million for buying a digital laboratory bus.
According to the budget estimates tabled yesterday, the education sector saw an increase of allocation in the development expenditure.
In the health sector, Uhuru gave members of parliament each Shs 20 million for construction of a health sector in every constituency which he said is a three-year journey towards achieving a countrywide health care facility upgrade programme.
"Mr. Speaker, as we strive to overcome the current challenges, we must recognize that building a better Kenya requires a healthy population," said the minister.
The minister further announced purchase of 30 bicycles and five motorcycles in for health service workers for every constituency.
Uhuru Kenyatta indicated that each constituency will receive Shs 5 million for purchasing a constituency medical supplies kit.
"To ensure efficiency in drug supply chain, storage and inventory control, I expect the two ministries of health, through the Kenya medical supplies agency, to ensure that an appropriate procurement system is put in place," said Uhuru.
The minister also promised to create jobs in the health sector on contract terms. 4,200 nurses an equivalent of 20 nurses per constituency will be employed.
According to thousands of Kenyans who made phone-in calls to radio and television stations, it was a wonderful budget by Uhuru Kenyatta-the patriot and man of the moment in Kenya.....brave and great son of Africa.