Good morning,
President William Ruto’s government in Kenya has launched an ambitious five-year economic turnaround plan aimed at reducing living costs, lowering annual inflation to five percent, eradicating hunger, and boosting job creation. This plan involves a substantial budget of Sh16.14 trillion, primarily funded by increased collections by the Kenya Revenue Authority (KRA).
President Ruto stressed the urgent need for interventions to address existing challenges and align with national aspirations, focusing on fostering inclusive growth and improving the welfare of citizens, especially those at the bottom of the economic pyramid, through the Bottom-Up Economic Transformation Agenda.
The fourth medium-term plan (MTP IV) is the final installment of a series initiated in 2008, aimed at elevating Kenya to a middle-income country. MTP IV will allocate Sh4.6 trillion more compared to previous budgets, reflecting a reliance on increased taxation due to limited borrowing capacity.
The government plans to increase revenue collection to 19.7% of GDP by 2027/2028 and cut the budget deficit to 2.9%, introducing new taxes like motor vehicle circulation tax and expanding the digital services tax. Despite challenges including the growing informal economy and the impact of Covid-19, they aim to reduce the debt-to-GDP ratio to 53.7% by June 2028 through increased borrowing.
Meanwhile here is the news making headlines on Opera News Today
Fresh housing levy deductions start in March
The affordable housing levy will be deducted from the March payslips, a new directive from the Kenya Revenue Authority (KRA) says.
Inside President Ruto’s Statehouse Meeting That Helped Ease Doctor’s Strike
Following doctors nationwide strike that had lasted for seven days, president William Ruto was yesterday evening forced to intervene in order to help ease the stalemate between doctors and the state.
Education ministry on the spot over ‘loss’ of Sh800m
Members of the Public Investments Committee on Education and Governance were left unimpressed after Education Cabinet Secretary Ezekiel Machogu failed to appear before them to answer audit queries regarding government sponsorship of students in private universities.