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Finance Minister John Mbadi has pledged to improve Kenya’s economy in the coming year.
Speaking during President William Ruto’s visit to Homa Bay County on Thursday, CS Mbadi expressed confidence that the economy could be revived within this period.
“I promise you this economy Kenya Mtupatie one year; second yearr It will rise” he said.
(I promise you, if you give us a year, the economy will recover the next year).
President Ruto held a thank you ceremony for Mbadi in his Subanan constituency on Thursday after launching several projects in Homa Bay County. Mbadi, an accountant by profession, previously served as the chairman of the National Assembly’s Public Accounts Committee for several years.
Experts have advised Mbadi to focus on reducing excessive government spending, eliminating unnecessary expenses and exploring debt restructuring options. While debt restructuring may incur high interest rates, experts believe it could help fill the gap left by Ruto’s budget cuts, which have affected several sectors.
For example, the education sector saw a Ksh30 billion cut, which resulted in the cancellation of funding for the school feeding programme, while the health sector also saw a Ksh20 billion cut and the government also cancelled confidential budgets.
In addition, the government reduced the number of presidential advisers, disbanded 47 government agencies with overlapping responsibilities, and froze motor vehicle purchases except for security agencies.
To further strengthen the economy, the Ministry of Finance plans to implement a medium-term revenue generation strategy. The plan aims to increase Kenya Revenue Authority (KRA) tax revenue to 20% of GDP by the end of the 2026/27 fiscal year from the current 13.5%.
“Let us have Kenyan economy for one year and the next year we will recover” – CS John Mbadi pic.twitter.com/JkgDvMLwJi
— K24 TV (@K24Tv) August 29, 2024
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