IEA Holds its 21st Pre-Budget Hearings for the Financial Year 2020/21

Post Date: 28 January 2020   |   Category: General   |   Hits: 254

Tuesday, 28th January 2020 - For the past 21 years, The Institute of Economic Affairs (IEA-Kenya) has made it a norm to encourage the corporate, social and other interested stakeholders to participate in the budget making process by submitting their budget proposals to be included in the budget statement by the National Treasury. This year’s annual pre-budget hearing was held on Tuesday 28th and Wednesday 29th, January 2020 at the Sarova Stanley Hotel, Nairobi. These hearings saw a range of proposals received from different sectors of the economy.

Speaking during the public forum, Mr. Job Wanjohi, the head of policy research and advocacy at the Kenya Association of Manufacturers (KAM), said that there is need for the government to remove the Import Declaration Fee (IDF) on all industrial inputs including basic raw materials and intermediate inputs and industrial machinery and spare parts, and further reduction of Railway Development Levy (RDL) to 1% for manufacturers. The current rates of IDF and RDL (as per The Finance Act 2019) increases the cost of imported inputs and thus increases the unit cost of production. The impact of increased cost of production is reduced competitiveness of Kenyan exports to regional markets. 

“If the government adopts our proposal, the removal of these levies will increase competitiveness of Kenyan products in the domestic market and the regional market which encourages import substitution,” Said Mr. Wanjohi. 

The Corporate sector saw representation from education, agriculture, manufacturing, water, sanitation and hygiene. While the Social sector covered arts and culture, clean cooking fuel and health sector -universal health coverage, mental health and health taxes. All the budget proposals presented during the pre-budget hearings will be consolidated and synthesized into a memorandum of principles and proposals dubbed “The Citizen’s Alternative Budget, and forwarded to Treasury for further consideration into the forthcoming budget reading.

Follow the link to download the presentations;