Our trust in the government regarding financial matters is demonstrably low. Even with the constitutional guarantees, the Finance Bill, 2024 was rejected, highlighting a disconnect between policy and public sentiment.
The tax proposals contradicted public expectations, and they lacked clear justification and transparency. These, in addition to concerns about accountability and prudent revenue management were amplified during the Gen Z led protests. It brought into question the legitimacy of the new tax measures.
There is need for genuine public participation in our budget making process to avoid a repeat of the Finance Bill 2024 debacle.
The constitutional basis for public participation in financial matters is articulated in Articles 10, 118, 201 and 221 where citizen involvement is stressed as not just a courtesy but a right.
Fundamental reforms in the tax legislation process are required. Public participation should be more than a formality; a genuine process of listening and incorporating public feedback at every stage.
Future budget proposals must accurately reflect the realities on the ground.
Clearly articulating the rationale behind tax measures and demonstrating a commitment to reducing fiscal wastage are essential steps towards transparency and accountability.
And this even as it was announced that the government will spend more than had initially projected, by nearly Sh400 billion in the coming months, reaching a total of Sh4.2 trillion by the end of the financial year. This represents a significant increase from the Sh3.8 trillion approved in the first supplementary budget last August.
From the boardroom to the ground
It is refreshing that policymakers are rethinking this process, actually ‘going to the ground’ and engaging the public.
The change of style, as shown by Treasury Cabinet Secretary John Mbadi and the Kenya Revenue Authority (KRA) Chairman, Ndiritu Muriithi 'listening to the ground', must translate into impactful engagements that avoid the pitfalls of previous budget cycles.
Mr Mbadi’s nationwide tours to gather public input should be more than just a performative exercise; they must genuinely inform policy decisions.
Unlike before, the realities on the ground must be truly reflected in what it is, before it is presented for deliberation and approval by their representatives.
A genuine commitment to public feedback is essential to rebuilding trust. These efforts should complement and strengthen, not replace, the existing parliamentary public participation processes.
Frequent changes in tax laws are unnecessary. These changes are inimical to economic growth and create uncertainty for investors, businesses and individual taxpayers.
Revenue projections must be realistic, not driven by an insatiable appetite for increased taxes.
Critically, the rationale behind any proposed tax must be clearly explained to the public, not just through formal statements, but through direct engagement and dialogue. A stable tax regime is required.
By prioritising genuine public participation, having realistic financial planning, Kenya can move towards a more sustainable and equitable fiscal landscape, avoiding the pitfalls that plagued the Finance Bill 2024 and rebuilding public trust in the process.
The writer is a former NTV business news anchor and reporter, and communication strategist
