Why MPs Want Ksh500 Million Added to Ruto First Budget

President William Ruto at the 22nd COMESA Summit of Heads of State and Government in Lusaka, Zambia, on Thursday June 8, 2023
President William Ruto at the 22nd COMESA Summit of Heads of State and Government in Lusaka, Zambia, on Thursday, June 8, 2023
PCS

The National Assembly's Agriculture and Livestock Committee on Friday, June 9, called upon the Treasury to add Ksh500 million to the 2023/2024 budget to cater for debts.

According to the committee, the funds will repay the debt accrued following the suspended maize flour subsidy program introduced by former President Uhuru Kenyatta in 2022.

The money would also clear Grain Mill Owners Association's (GMOA) pending bill, as the organisation was not fully paid before the program was suspended. 

MPs were investigating the multi-billion program shrouded in mystery and halted by President William Ruto when he ascended to power in September 2022.

Treasury CS Njuguna Ndung'u chairs a bilateral cooperation meeting Czech republic and Kenya at the Treasury Building, Nairobi county on Wednesday, January 11, 2023.
Treasury CS Njuguna Ndung'u chairs a bilateral cooperation meeting Czech Republic and Kenya at the Treasury Building, Nairobi county on Wednesday, January 11, 2023.
Photo
Treasury

Treasury Cabinet Secretary Njuguna Ndung'u is expected to read the budget before Parliament on June 15 at 3 pm.

Ruto's administration has set the proposed budget at Ksh3.6 trillion, an increase from last year's Ksh3.39 trillion.

According to the treasury, Ksh700 billion will be acquired through borrowing and substituting it with taxes from Kenyans.

Notably, the proposed Finance Bill 2023 includes increased taxes in various sectors to help the government collect money to steer the country.

"Revenue performance will be underpinned by the ongoing reforms in tax policy and revenue administration measures geared towards expanding the tax base," the CS earlier stated.

Ruto projects that collection by the Kenya Revenue Authority (KRA) to rise to Ksh2.571 trillion.

Meanwhile, following the investigation, MPs discovered that one of the reasons Kenyans did not access the subsidised maize flour was the absence of proper labelling on maize flour packets.

This created a loophole for rogue individuals to sell the commodity at high prices.

Led by John Mutunga, Tigania West MP, the committee also discovered conflicting figures from the Ministry of Agriculture and the millers regarding the quantity of maize flour supplied and the amount paid.

Maize Flour on Supermarket shelves
Maize Flour on a supermarket shelf on April 4, 2023.
Photo
Ken Aseka