By Anderson Ojwangย ย
President William Ruto’s masterstroke in appointing the immediate former national chairperson of the Orange Democratic Movement (ODM) to the Treasury and Economic Planning portfolio is telling. The alumni of Kokuru Secondary School in Migori County are what President Ruto needed to ease the economic and administrative burden on his shoulders at the Treasury ministry to steer the ship to safe docking.
The straight-talking and indefatigable worker, Mbadi, is on a mission to stabilize the economy and help the government realize its agenda for the nation.
In a recent roundtable meeting and before the President, Mbadi said, โYour Excellency, what I wanted to say which is not part of my speech, in response to what the chairman has said. The first one, Chairman, I was embarrassed in Washington, that we were treated badly. I wanted to clarify.”
โBut when you see, you find African countries queueing in the corridor and then they are called one by one, Nigeria you come in for 15-20 minutes, next Rwanda, Kenya, and the chain continues. I mean to some of us who have some pride, it is demeaning.”
โYou see the money that we are asking for out there, Your Excellency, if we just tighten up our system, we can do without some of these monies. We can do that. Today IMF has released Sh 78 billion but if the Kenya Revenue Authority (KRA) puts the system in place we can collect not less than Sh 400 billion. We can do without some of these loans.”
โBut again, Your Excellency, the chairman spoke about staff motivation, and I am aligned as a country.โ
After his appointment, Mbadi made promises to transform the Treasury and improve public confidence in the government.
โYour Excellency, I promised you when you appointed me that you did not appoint a conman. We will not con Kenyans; we will speak to Kenyans. Where Kenyans feel we need to change, we will change, but let us engage.”
“Again, what I told my team at the Treasury when the President appointed me, he did not appoint a clerk; he appointed someone who would come up with policies. So policies must be proposed. So those who oppose policies that are proposed are wrong. Let us engage, let us discuss, and where you feel we need to change, we will change.”
“We put out a notice asking you to give us proposals. We received these proposals. Let us now engage and discuss.โ
Mbadi, after his appointment to the Treasury, in a hallmark move, sought public input on reforms to address debt, county cash crises, and inclusive economic growth in the country.
The Treasury sought from the public to address the cash crisis in counties in case the Division of Revenue Bill and County Allocation of Revenue Bill are not enacted on time (by 30th June).
The public was also required, before 4th October 2024, to submit their views on necessary reforms to enhance tax administration and compliance to ensure each taxpayer pays the rightful share of tax through reducing tax evasion and avoidance.
To cut down on expenditures from revenue collected, Mbadi sought views on how to rationalize tax expenditures that would erode the governmentโs income, which could otherwise be used for projects to improve the welfare of all Kenyans. The views are also expected to capture legislative measures deemed fit to ensure equity and fairness in taxation and provide tax amnesty where justified.
Views on legislative reforms essential for improving the social and economic well-being of all Kenyans, considering the current debt situation and the need for a sustainable public debt position without putting more burden on Kenyans, are also sought.
โThe proposals received in these areas will inform reforms to be undertaken in revenue administration and review of legislation by my ministry to foster inclusive economic growth for the welfare of all Kenyans for submission to Parliament,โ he said.
Mbadi stated that Kenyaโs economy has grown despite challenges with the economy expanding by 5 per cent in the first quarter and 4.6 per cent in the second quarter, and the growth is projected to moderate to 5.2 per cent in 2024 and move to 5.4 per cent.
โOur economy has grown. Global economy growing at 3.22 per cent and sub-Saharan 3.7 per cent. Kenya’s economy growing above beyond the average,โ he said.
In his first speech after the appointment, Mbadi emphasized the urgent need to address Kenyaโs debt, now over KES 10 trillion. Currently, the Auditor General has started to examine the country’s debt to ascertain the amounts owed to various creditors.
Kenyaโs debt stands at 10.5 trillion shillings ($81.71 billion), and an audit of the borrowings was one of the key demands of anti-tax hike protesters that forced the government to abandon several planned tax increases in June.
The auditor general is a constitutionally mandated independent office funded by the state. During the height of the protests, President William Ruto appointed a committee to perform the audit. However, several appointees, including the head of the Law Society of Kenya, declined the appointments, saying the task should be carried out by the auditor general.
Mbadi had promised to ensure there is more “debt accountability” to help the public better understand the issue.
Nyando MP Jared Okello said Mbadi was doing good work to transform and stabilize the economy.