The Azimio coalition scrutinized the government's 2024 Budget Policy Statement, identifying significant concerns and issuing warnings to Kenyan citizens.
In a critical review of the Treasury's published policy measures aimed at enhancing economy-wide efficiencies and supporting business growth while reducing living costs, Azimio raised alarm over potential double taxation.
Describing the statement as flawed and impractical, Azimio cautioned citizens to prepare for the imposition of additional taxes, suggesting that the government intends to levy taxes on every adult exceeding a certain income threshold.
"If the BPS is anything to go by, Kenyans must be ready to tighten their belts because the Kenya Kwanza regime is coming after them in a second wave of taxes," Azimio cautioned, emphasizing the anticipated burden on ordinary citizens, including small-scale traders, motorcycle taxi operators, and construction workers.
Azimio specifically highlighted concerns regarding the education sector, warning of potential increases in school fees due to proposed Value Added Tax (VAT) on educational services, particularly extracurricular activities. The coalition criticized the government's rationale for imposing VAT on such services, citing it as discriminatory and unjust.
Moreover, Azimio accused the government of presenting inflated, dubious budgetary figures without clear strategies for revenue generation, expressing concerns about the adverse impact on the middle class.
"A cursory look at the Budget Policy Statement, 2024 indicates that will kill the middle class and when the middle class is dead, they will hurt millions of our people," asserted Raila's camp.
The coalition also condemned the Housing Levy bill, labeling it unfair, discriminatory, and unconstitutional. Azimio urged citizens to hold accountable Members of Parliament who supported the bill, warning of potential legal challenges or street protests to oppose it.
Addressing the issue of the exchange rate between the local currency and the dollar, Azimio criticized what it perceived as artificial manipulation by the government, attributing it to unsustainable practices.
Furthermore, Azimio accused the Kenya Kwanza administration of reckless borrowing, alleging an increase in spending by over Ksh400 billion and a failure to fulfill promises of reducing borrowing.
Despite warnings about debt distress and the risk of default, Azimio criticized the administration for borrowing at a high rate from the domestic market, resulting in substantial debt accumulation.
"The regime went against its promise to reduce borrowing and did the complete opposite today KK regime has borrowed close to Ksh2 Trillion in just one and half years," Azimio claimed, highlighting concerns about the sustainability of Kenya's debt burden under the current administration.