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State releases Sh2b more for drought response

Wednesday, November 2nd, 2022 09:10 | By
There are three ingredients the government ought to get right to ensure the economy gets a balance that can create the fiscal space necessary for growth. First, the taxman has to get into those spaces that can enable him to increase tax collection without burdening the current taxpayers. This will ensure that the taxman collects sufficient revenue to fund the national Budget without too much borrowing. Over the next two years, the taxman should be able to grow revenues from the current Sh2 trillion to Sh3 trillion to ease debt pressure. This ambition will require tax reform measures that could see every Kenyan above 18 years enter the tax bracket using technology. Secondly, the government will need to be more prudent in its expenditure to ensure fiscal discipline. This can include suspending proposed development projects and reviewing the budgets for existing ones. Completing existing projects, particularly roads, should however be prioritised to ensure they start giving value to the public. Enforcing fiscal discipline and prioritising development spending will help the government to borrow less. If the government manages its appetite for domestic borrowing, there will also be more money for banks to lend to the private sector, which will boost the economy. The third and most important ingredient is a presidential pronouncement on pilferage of public re-sources. While we can not ascertain that the last government was losing Sh2 billion a day as the then President Uhuru Kenyatta once said, what is known is that the country ranks worse than average in almost every dimension of corruption, according to a World Bank diagnostic report. For example, Kenya ranked 124 out of 180 countries in the Corruption Perceptions Index 2020 released by Transparency International. That is why Kenya must start a serious talk on how to ringfence taxpay-ers’ money from pilferage. This will also call for a major shift in civil service mindset if the new administration is to succeed in turn-ing around the economy. However, the government must not forget that it is not running a business but a country. Its work is to invest in public goods, not to make money or scrimp when handling some expenditure. The point is for it to create an opportunity for the economy to expand and create room for all sectors to thrive, bearing in mind that the more people there are paying taxes, the better it will be for gov-ernment. As such it must do all in its power to keep those already in employment in their jobs while creating opportunities for new entrants.
President William Ruto. PHOTO/Courtesy

President William Ruto yesterday painted a gloomy picture of the effects of the relentless drought, indicating at least 5.3 million people were at the risk of starvation.

He said 4.5 million people from arid and semi-arid (ASAL) counties and 856,000 from other regions were facing acute shortage of food and require immediate intervention.

Yesterday, the President pledged an additional Sh2 billion to alleviate the suffering of Kenyans in affected areas.

Out of the 5.3 million, Ruto said, 942,000 were children aged below five years while 135,000 pregnant women and lactating mothers, who, he said, needed urgent treatment for acute malnutrition.

According the President, who was addressing officials of Red Cross at State House yesterday, said the biting drought had created the driest conditions in four decades and killed 2.5 million livestock.

“We are in the grip of the worst drought in 40 years. We have a lot of work to do in mitigating the menace by doing everything to ensure no life is lost,” the Head of State said during the function in which he was installed the patron of the relief agency.

He added: “Because the situation is both dire and urgent, we have agreed that in addition to the Sh3.2 billion that the government had made available, we have again this morning made an additional Sh2 billion to support the food distribution program. I will also be meeting other partners in the course of the week to agree on the budget.”

There was a ray of hope in some parts of the country where rainfall was reported yesterday. 

The Kenya Meteorological Department said rains were expected in several parts of the country including, Rift Valley, Lake Victoria Basin, Central, the Coast and North-Eastern in the next one week.

The Head of State said the famine had reached historic magnitudes and had hit 20 out of the ASAL counties and 49 wards in nine others counties in Mt Kenya, Rift Valley and the Lake region.

Canned beef

Eleven counties – Turkana, Marsabit, Samburu, Isiolo, Laikipia, Mandera, Wajir, Kajiado, Tana River, Kitui and Garrisa are in the alarm phase, and facing vegetation deficit that has claimed millions of livestock.

As part of the efforts to mitigate the situation, Ruto said his administration had so far distributed 20,000 bags of rice, 24 bags of beans and 7,000 cartons of canned beef, all worth Sh300 million to Isiolo, Marsabit, Wajir, Mandera, Baringo, Turkana, Kajiado, Samburu and West Pokot counties.

Further, Sh900 million had been used to buy 66,000 additional bags of rice, 88,000 bags of beans and 60,000 cartons of canned beef, which, he said, were being distributed to affected areas in 29 counties.

He added that the government had been giving out canned beef to learning institutions in the affected areas as a way of keeping children in school.

Out of the additional Sh2 billion available for the purchase of food, Ruto said Sh250 million will be made available to Kenya Red Cross in addition to other Sh340 million that had been contributed by Kenya Private Sector Alliance (KEPSA), the Kenya Association of Manufacturers (KAM) and other partners to facilitate purchase of food.

Livestock loss

Ruto said his government, through the Kenya Meat Commission (KMC), in conjunction with the Kenya Red Cross, was running a livestock slaughter uptake programme in 13 drought-stricken counties.

He said the programme, which will see at least 27,000 animals bought, is meant to cushion approximately 270,000 families from pastoralist communities from losing their livestock to drought.

The drought has also triggered bloody conflicts as some herders invade private land to graze their livestock. Residents of Kitui County have complained that herders from Somali, Orma, Borana and Galla communities have been grazing cattle and camels in private farms.

Climate change

An estimated Sh200 million, the President, said would also be made available to the Kenya Wild Service (KWS) to support wild animals which have also been affected by the severe drought. The funds would be used in, among other interventions, to provide water to the animals.

As part of long-term measures, the President asked the Kenya Red Cross Society to incorporate climate change in its scope of activities.

The unprecedented wave of challenges caused by the current drought, the President said, calls for effective and transformative collaboration.

“Go further and join us in sensitising our communities about climate change and ways of building resilience,” he said, and urged the Society to use its capacity to mobilise communities to complement the government’s tree-planting programme.

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