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Economic relief, cutting living costs must be priority

Economic relief, cutting living costs must be priority
Some of maize flour brands stocked at Naivas Supermarket in Thika against their prices. PHOTO/ Mathew Ndung’u

The promise of a Sh4.3 trillion “common man’s budget” by Treasury Cabinet Secretary John Mbadi has raised expectations, especially in light of the recent economic hardships and widespread discontent that have gripped the nation.

For millions of Kenyan households, the real issue is not the size of the budget, but what it delivers. Kenyans are not asking for miracles; they are asking for dignity, fairness, and economic breathing space.

The rising cost of living, the unrelenting inflation, and the constant threat of punitive taxation have left citizens struggling to make ends meet. It is, therefore, encouraging that the government has pledged to lower the cost of basic commodities. That is a step in the right direction.

In his recent public engagements, Mbadi struck the right tone: a budget that seeks to restore economic stability, relieve citizens of financial stress, and bolster national growth.

That message matters. For a nation still reeling from the effects of post-pandemic recovery, inflationary shocks, and rising debt servicing obligations, the 2025 budget must serve as a blueprint for economic healing, not just fiscal balancing.

Month-on-month inflation has been particularly burdensome for working-class families. From unga to fuel, the sharp increases in prices have outpaced wage growth, shrinking disposable income and fuelling public resentment. If the government is to remain true to its promises, it must ensure that inflation is tamed and stays within the Central Bank’s target range. Monetary discipline must go hand in hand with people-centric policies.

To his credit, Mbadi assured Kenyans that the new budget would not include new punitive taxes – particularly in a climate where public trust in fiscal policy is fragile. This clarity is critical.

What Kenyans have consistently demanded is not tax avoidance, but tax justice. They are not against paying taxes; they simply want reasonable, transparent, and accountable tax policies that do not cripple small businesses or burden households beyond their means. Good it’s what Mbadi is trying to explore.

Kenyans understand the importance of taxation in nation-building. They know that public services, infrastructure, and national development require resources.

But instead of squeezing the few already in the tax net, the government must focus on broadening that base – by formalising the informal sector, reducing tax evasion, and incentivising compliance through fair rates and visible service delivery.

The informal sector contributes over 80 percent of employment in Kenya but remains largely untaxed.

This is where policy innovation is needed – not more levies on already overtaxed sectors. A broadened base, supported by digital tax infrastructure and taxpayer education, can create a more equitable and sustainable revenue stream.

It is promising to see the Treasury engaging the public ahead of the final budget formulation. This kind of civic participation is not just a constitutional requirement – it is good economics. The more inclusive the process, the more legitimate and reflective the budget becomes.

But public participation must be meaningful, not performative. Kenyans are watching to see whether their input will be reflected in policy.

The writer is a media consultant, senior writer at People Daily, and a regular commentator on governance and democracy; kepherpeace@gmail.com

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