1) Kenya's budget is Sh. 2.1 trillion but only Sh. 800 billion is expected to be collected in taxes, leaving a Sh. 1.3 trillion gap that must be filled by an already struggling populace. 2) Rising oil prices are used to increase the costs of all other goods and services in Kenya, worsening economic conditions for ordinary citizens and businesses. 3) The entire budget is unrealistic and not backed by economic indicators, relying on inflated GDP figures despite a steady economic decline in key sectors like agriculture and widespread unemployment. Resources are not properly allocated or audited, with massive amounts going to internal security and the powerful planning ministry.

1. FROM THE FRYING PAN DIPS
THE KENYA ECONOMY
To call it chaotic would be over-simplification of a grave matter. The budget is Sh. 2.1 trillion. What is
available or expected through taxation is just Sh. 800 billion. Sh. 1.3 trillion has to be milked from a
people who are jobless, under-employed or pinned down by inflation.
We always suspected it, and it has come to reality that the slump in international oil prices would be
usedto make a killingchargingKenyansevenmore onoil.Andwhenthe oil pricesgo up,all other goods
have to do the same given production and transport consideration. In fact there is no longer need to
increase the price of everything these days. You just do the oil and you have the money rolling in.
What is unfortunate is the impact on the ordinary people and employers, finally the entire economic
growth.Thisis especiallysonowthatthe price of goodsand servicesskyrocket, as well as the taxes and
interestratesonloans. Employers will not be able to employ more people under these straits and the
government itself ceased to employ people 2 ½ years back. A country that narrows the employment
base does the same for its tax base as well.
The entire budget estimate is a hoax. It is like going to the bank and asking for a loan three times the
value of yoursecurityor worth.It isa signof financial indiscipline onthe part of the government and its
operatives. Whodo they want to impress with fictitious estimates and figures? It is great to think big,
but in financial matters it must be backed by indicators on the ground and factual projections.
Thenthere isthe fraudulentclaimthatthe country’s Gross Domestic Product (GDP) has grown from Sh.
3.5 trillion in 2013 to Sh. 5.4 trillion currently. In 2012 – 13 estimates turnober was Sh. 950 billion but

2. the economy has been on a steady decline making this year’s projection by the treasury be Sh. 800
billion. How then can GDP have risen in the same period to Sh. 5.4 trillion without any windfall in the
formof majoreconomicprogrammes?Realityof the situationisthatGDP has shrunkfromSh.3.5 trillion
to Sh.3 trilliongiventhe declineinagricultural productionandmassunemployment.Sowithabudgetof
Sh. 2.2 trillion we must be surely faking things up.
But thenif we were tradingwithgenuine partnersthe rise inGDPcouldall be possible.Butthe reality of
trade with China is that your industries do not benefit in any way as they import all the raw materials
they use, including cement, shovels, brooms, name it. They don’t even rent your premises and live in
containers or camps, eating food only they themselves know of. Our engineers do not get consulting
jobs as they do everything, from feasibility studies, drawing plans and implementation.
Kenyan leaders approach the Chinese like beggars, without using their technical experts to evaluate
projects,setstandards,specificationsandparameterswithinwhichtodeliver.Soarailways line inferior
to that builtforEthiopiaandisshorterwe are changed three times the rate the Ethiopians pay. Maybe
the Chinese include the kickbacks for leaders since they can’t be so unreasonable in an international
deal. So Thika Highway had to be repaired in the first year of its operation.
The foreignexchange earners,the tea,coffee,tourismanddisaporaremittanceswill contributeSh.400b
of the expected Sh. 800 billion turnover. Taxation will take care of the balance as we grapple will loan
repayment,notablythe Eurobondthatrecued uslastyear.AsKenyansstruggle to make ends meet, the
big guys at the top will reap rewards skimming the budget allocations. Of the Sh. 800 billion expected
from the tax payer, more than a quarter of it, Sh. 220b, will go to one Ministry of Internal Security. We
know we have had terrorist attacks all over the place. But why make a kill because of it? Money alone
withoutgoodplanningandcommitmentcannotstopthe terrorists.The internalsecuritydocketiswhere
moneyliesbecause theirexpenditureisnotaudited.Devolutionandplanningministryheadedbythe all

3. powerful ministerAnnWaiguruisgivenSh.280 billion.DevolutionandInternal Security alone consume
Sh. 500 billion, leaving out only Sh. 300 billion for the rest.
In Waiguru’sministry,awhoppingsh.25 billionissetaside for a mere sub-section in a department, the
National YouthService (NYS).Inany case the Central Bank of Kenya has just placed under spotlight the
misuse of publicfundsatthe National YouthService (NYS) runningintohundredsof millions of shillings.
The CBK states that the questionable payments have been made to the following; Bora Global Ltd,
TranscendMedia Group, Things of Desire, Tunasco Instaat, Alpha Mercantile and the consulting house
of the Jubilee alliance political scientist Mr. Mutahi Ngunyi. Now that a whole Sh. 25 billion is at their
disposal, the gravy train is really on.
On a seriousnote the National YouthService whichenjoysthe planningservicesof Mr. Mutahi Ngunyi,is
a quarter millionstrongparamilitarybodyof mostlyyoungKikuyu’swhoare trained and heavily funded
by the Chinese.Theyare supposed to be sent to all parts of the country to complement regular forces,
especiallyduringriotoussituationsakintothose of 2007 – 8, where Kikuyuswereprofiledandpunished.
That is good for political scheming, but on the economic front there are no signs of let-up. We are
jumping from the frying pan into the fire as others make hay. Taxation in Kenya is like a form of
punishmentinwhichpeople are punishedfortrading, working and even living. It is punishment in that
you pay tax but get nothing in turn by way of improved services or responsible treatment. You pay
double byaddinga bribe ontop of the tax. And often you still fail to get the right thing you want. After
that youface the highprices,transport,rent,school fees.In certain counties they add a tax for keeping
hens, dogs, or even burying a dead family member.
BY: FREDERICK OWINO OYARO
EMAIL: frederickoyaro@gmail.com