Nipate
Forum => Kenya Discussion => Topic started by: RV Pundit on March 14, 2023, 04:58:37 AM
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https://nation.africa/kenya/blogs-opinion/opinion/-bold-fiscal-reforms-needed-to-curb-wastage-4155128
If radical measures were undertaken to reduce the size of the national government, billions would be freed and re-directed to sectors that impact the common man directly. For example, in December 2022 it was announced Kenya Airways will get an additional state bailout of Sh34.9 billion.
Assume these monies were redirected towards extending National Hospital Insurance Fund (NHIF) coverage. Sh34.9 billion is enough to pay NHIF card fees for 5.8 million households annually at the rate of Sh6,000 per household.
The average household size in Kenya was 3.9 members, according to the 2019 census. That translates to 22 million Kenyans being newly NHIF-covered after redirecting KQ’s Sh34.9 billion bailout.
Of course it can be argued KQ has about 4,000 employees who deserve protection. It also serves Kenya’s strategic interests of making Nairobi a business hub, facilitates export business and promotes tourism (though it is not clear how these objectives cannot be served by other airlines ). But can these reasons outweigh the interests of 22 million Kenyans?
Or assume these funds were redirected towards primary school feeding programme to boost class attendance. In 2021, nearly 10.2 million pupils were enrolled in primary schools in Kenya.
Murang’a County’s Early Childhood Development Education (ECDE) porridge programme shows that one cup of fortified uji costs an average of Sh12 per learner.
If this was extended countrywide for 10 million primary school learners, that would translate to a budget of Sh21.6 billion per annum. The beneficiaries would not just be the pupils; the parents’ out-of-pocket expenditure would be saved and redirected towards other productive causes.
Free education
Assume these sums were redirected towards secondary day scholars. In 2021, Kenya had approximately 3.7 million students in public and private secondary schools. Those in day schools are about two million and they pay Sh10,000 per annum for their food. The government needs Sh20 billion only to achieve absolutely free day school education.
The above points illustrate why the government’s intention to sell off loss-making parastatals is a good idea.
Such bold measures explain why Margaret Thatcher remains a popular former British Prime Minister (1979-1990). Thatcher’s economic policy championed for lowering of direct taxes on income and increased indirect taxes. She increased interest rates to slow the growth of the money supply, and thereby ensure lower inflation; introduced cash limits on public spending and reduced expenditure.
By 1982, the UK began to experience signs of economic recovery; inflation was down to 8.6 per cent from a high of 18 per cent. By 1983, overall economic growth was stronger, and inflation and mortgage rates had fallen to their lowest levels in 13 years. Kenya deserves such bold reforms.
Dr Kang’ata is the Governor of Murang’a County
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Nice read.I think he is a very progressive character.I wonder if Ndindi can beat him in Muranga in 2027.
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I doubt Ndidi will be interested; Irungu is Ndidi mentor and friend - left Kiharu for him; Irungu Kangata will be strong candidate for president in 2022.
He is smart, humble and delivers - and also brave.
Raila, Karua and Kalonzo will be finished soon - 70s yrs plus
Next - MaDVD and Gachagua - 60yrs old
Ruto is 50s - I dont see any of his generation - up there.
Next - we skip all the way to 40s & even 30s - Ndidi, Irungus, Murkomen, Ichungwa, Sakaja - we can add BABU for the laughs.
Nice read.I think he is a very progressive character.I wonder if Ndindi can beat him in Muranga in 2027.