By Adongo Ogony May 17, 2024
Gachagua’s office seeking Sh2.6 billion in next financial year
Sh1.12 billion will be for refurbishment of Harambee Annex, Karen residence
Deputy President Rigathi Gachagua’s office is seeking Sh2.6 billion in the 2024-25 financial year.
Documents before the Departmental Committee on Administration and Internal Affairs show that part of the money will go towards the refurbishment of his Harambee Annex office and his official Karen residence.
The documents, presented to the committee for consideration of the 2024/25 Financial Year Estimates of Revenue and Expenditure and The 2023/24 Supplementary Estimates No. II, show Sh1.12 billion will be for refurbishment.
The office intends to use Sh460 million and Sh660 million to renovate the Harambee Annex and Karen residences respectively.
The remaining Sh1.48 billion comprises Sh200 million for the acquisition of motor vehicles, Sh250 million for the implementation of an alcohol drugs and substance abuse programme, Sh250 million for the purchase of medals, honours, and insignia and Sh800 million for confidential expenditure.
Making the submission, Patrick Mwangi, an official from the office said there was the need for the two offices to be refurbished as they are old.
“The continuous lack of maintenance has necessitated a facelift targeting major functional areas and security systems of the building,” he said.
Committee chair, Narok West MP Gabriel Tongoyo, wondered why Sh250 million was needed for the purchase of medals, honours and insignia.
“Are we not becoming extravagant when we know very well the situation of this country?” he posed.
Other expenditures include Sh247.7 million for catering services, accommodation, gifts, food and drinks, Sh301.5 million for boards, committees, conferences and seminars, Sh2 million for the purchase of staff uniforms and clothing trainees.
Sh17 million for International News Services, Sh205,000 entertainment allowance, Sh33.6 million for transport allowance, Sh205.5 million for house allowance, Sh22 million for overtime for civil service.
Sh5 million for domestic servant allowance, Sh328.5 million for personal allowance, Sh520,000 for gas, Sh31.4 million for telephone, facsimile and mobile phones and Sh10 million for internet connections.
Others are travel cost for both airline, bus, railway and mileage allowances (Sh171.8 million), accommodation for domestic travel (Sh91.7 million), sundry items such as airport tax, taxis (Sh5.7million), domestic travel and subsistence and other transportation costs (Sh343.6 million), travel cost by airlines, bus, railway (Sh163.8 million), accommodation (Sh93.8 million), state visits abroad (Sh15 million) and foreign travel and subsistence and other transportation costs (Sh287.6 million).
And William Ruto’s other Deputy President Moses Mudavadi also has demands for more money.
Prime CS Mudavadi Seeks Additional Budgetary Allocations To Strengthen Foreign And Diaspora Affairs
Addressing the committee during the presentation of the 2024/25 Financial Year Estimates of Revenue and Expenditure and The 2023/24 Supplementary Estimates No. II, Mudavadi articulated a series of compelling justifications for the additional budgetary requirements, each grounded in Kenya’s overarching commitment to fortify its stature as a regional and continental powerhouse and, to enhance its diplomatic outreach on the global stage.
The Prime Cabinet Secretary and Cabinet Secretary for Foreign and Diaspora Affairs emphasized the imperative to operationalize newly approved foreign missions, essential for expanding Kenya’s diplomatic footprint and fostering closer ties with international partners.
Moreover, the PCS highlighted the significant challenges posed by the devaluation of the Kenya Shilling in 2023, which had resulted in arrears and funding shortfalls for crucial diplomatic endeavours undertaken by Kenyan missions abroad.
“Kenya’s proactive engagement in geopolitical matters involving peace, security, and economic diplomacy, necessitates financial backing to effectively lobby and collaborate with global stakeholders. This includes Kenya’s recent submission of a candidate for the Chairmanship of the AU Commission. He said
The PCS also underscored the pivotal role of state events and foreign visits in projecting Kenya’s regional influence and facilitating meaningful participation in international fora. Such engagements, including hosting visiting dignitaries and participating in high-level summits, are integral to advancing Kenya’s diplomatic objectives.
Mudavadi emphasized the crucial role played by Kenya’s foreign affairs and diaspora initiatives in safeguarding the welfare of its citizens worldwide and harnessing the potential of the diaspora community to contribute to Kenya’s national development efforts.
And how is William Ruto going to fund all these insanity. Here is the plan. Ruto wants to be the Kenyan president who raised taxes on Kenyans to the maximum. Good luck with that Mr. President and thanks for telling us so loudly. Kenyans are not idiots. You will soon find that out.
‘You Will Complain But Finally Appreciate’: Ruto To Raise Tax Rate From 14% To 22%
President William Ruto has defended the government’s plan to levy additional taxes on Kenyans, stating that it is part of a broader strategy to enhance the country’s revenue and reduce reliance on borrowing.
The Head of State says he intends to raise the country’s average tax rate from the current 14 percent to 16 percent by the end of this year and aims for a rate of between 20 and 22 percent by the end of his term in office.
While acknowledging the economic burden Kenyans will have to bear to achieve this target, Ruto believes that the long-term benefits will justify the increased taxes.
“My drive is to push Kenya, possibly this year we will be at 16% from 14%. I want in my term, God willing, to leave it at between 20 and 22 %. It’s going to be difficult, I have a lot of explaining to do, people will complain but I know finally they will appreciate that the money we go to borrow from the World Bank is savings from other countries,” said Ruto.
He was speaking during an engagement with the Harvard Business School’s Class of 2025 students on Africa’s trade and investment potential at State House, Nairobi on Tuesday.
President Ruto noted that the push to raise more revenue through taxes was also part of ensuring that “we live within our means.”
“When I came into office I told everybody to tighten up your belts… I am not going to preside over a bankrupt country… I’m not going to preside over a country in debt distress. We have to cut our spending. And there is no free lunch,” he said, further dismissing the perception that Kenya has higher taxes compared to the region.
Top on the list is the increase in the price of bread and a mandatory tax for all motor vehicle owners in the country as the government funds the 2024-2025 budget
Treasury has proposed to paste VAT on bread, with a proposed rate of 16 per cent after removing bread from tax exemption.
The Finance Bill 2024 also suggests eliminating VAT exemptions for several financial services, including issuing credit and debit cards, telegraphic money transfer services, and cheque handling, processing, clearing, and settlement including special clearance or cancellation of cheques.
The Real Deal 