NYAKERA: Government is wasteful while Kenyans are overtaxed

Unless someone wants to hide something or protect someone, the issue of ghost workers should have been closed by now.

The government payroll is too heavy for this matter not to be a priority.

Meanwhile, government spending remains excessive and wasteful even as Kenyans continue to be heavily taxed.

The Auditor General’s 2023- 24 report reveals billions lost to mismanagement and theft, yet no serious action is taken against those responsible.

This, even as borrowing continues to bridge budget deficits which has continued to push up the country’s debt, amid rising recurrent expenditure which simply translates to an expanding wage bill.

Kenya’s debt, currently at Sh11 trillion, continues to spiral out of control, with overall government spending projected to hit Sh4.34 trillion, up from Sh3.95 trillion this year.

The government aims to reduce the fiscal deficit to 3.8 per cent of GDP, but this means little when debt servicing alone takes up over 60 per cent of total revenue, with government wages up to Sh1 trillion.

Even more worrying, the government projects a 5.3 per cent GDP growth rate in 2025, yet there are no clear policies to stimulate struggling sectors such as manufacturing, agriculture and SMEs.

Without decisive action, and payment of pending bills, this projected growth will only exist on paper while businesses collapse and unemployment continues to rise.

Despite CS Mbadi’s claims that “Kenyans are not overtaxed,” the reality on the ground tells a different story of multiple deductions on salaries and increased taxes to businesses.

Given the existing taxes, increasing fuel levies, and informal businesses being pushed into taxation, Kenyans are suffocating and government must now shift focus from introducing new taxes to sealing revenue leakages caused by corruption and mismanagement, which includes the payments to ghost workers.

The Budget Policy Statement emphasises the importance of counties in delivering services, but the truth is that many county governments have become centres of corruption.

The Auditor General’s reports expose billions in unaccounted funds including payment for services that were not delivered and ghost workers.

KICC chairman and former Transport PS spoke to the Star