Third Quarter 2013/14 Budget Perfomance

Theme: General

Third Quarter 2013/14 Budget Perfomance    |   File Size: 339.79 kB Downloads: 1455   |   Post Date: 18 December 2014

The enactment of the new VAT law, among other events benefitting tax collection, ensured that government revenue collection was on track in the third quarter of 2013/14, even in spite of slightly slower than expected economic growth and failures by some departments within the Kenya Revenue Authority to meet targets.  Unlike revenue performance, the government continued to perform poorly in spending. All Ministries, Departments and Agencies only managed to spend a little over half of their anticipated budgets by the end of third quarter in 2013/14. The bulk of the unspent money was from the development budget, with the biggest culprits being the infrastructure related ministries. In order to speed up spending of the development budget the IEA proposes that the National Treasury establish a robust project implementation system as well as take steps to improve MDAs project management capacity. Related to this is the need to cut subsequent budgets of culpable MDAs as a sanction for perennial under spending. We also propose measures towards strengthening the COB report as well as towards improving the transparency of donor financing.

Analysis of the Finance Bill, 2014

Theme: General

Analysis of the Finance Bill, 2014    |   File Size: 273.89 kB Downloads: 3109   |   Post Date: 08 December 2014

Kenya has been undertaking tax reforms since early 1990’s with a view to modernizing the tax regime and making the tax system not only broad based but also more efficient and equitable. Recent key developments in the taxation and expenditure environment in Kenya include on-going automation to enhance tax administration and the enactment of a new VAT legislation in 2013. Indeed the stated objective of the new VAT legislation was to make is simple and easy to administer. Further, the Act initiated reforms towards rationalizing and reducing the number of goods and services that are both exempt and zero rated, abolition of VAT remission and application of a standard rate of 16% for all goods and services for which VAT applies. According to the Budget Statement 2013/2014, the Treasury estimated that upon enactment of the VAT law, the Kenya Revenue Authority (KRA) would raise an additional Ksh 10 billion in the first year. This was achieved as the Budget Policy Statement 2014 indicates that the estimated revenue collection from VAT was Kshs. 221.8 billion for the financial year 2013/2014 and the revised budget as per the estimates of   revenue for the same period was Kshs. 231.0 billon

Unpackaging The Failed States Index: Kenya's Policy Options

Theme: General

Unpackaging The Failed States Index: Kenya    |   File Size: 2.08 MB Downloads: 3551   |   Post Date: 04 December 2014

These indicators show the various challenges that the state is faced with, and has to grapple with in her endeavor to provide adequate and satisfactory services to the citizens. It is important to note that although the world average on these indicators is low, and Kenya’s score has not been anywhere near it, does not necessarily mean there are no success stories to be written. As a matter of fact, there are pockets of positive changes that can be mentioned, even though their effects are minimal in comparison to the vastness of the state and the population size.

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