Kenyan budget 2015/16 summary

Partying will continue as smokers and drinkers fund the budget, Kenyans will still travel and pay hiked fares with a smile, Landlords will literally transfer their 12% tax on to tenants but still occupancy will remain steady at between 80 & 100%! The budget has a deficit of close to 700 bilion! Good thing is, there is wider catch with govt bonds having reduced initial investment to 3k from 50k! Here is a listing of major gainers and losers;

LOSERS

1. Smokers, alcohol lovers and motor vehicle importers – The excise duty bill proposes new charge on harmful items be levied on cigarettes, alcohol, motor vehicles and plastic bags.

2. Lottery operators – They will be taxed at 5 per cent of turnover; bookmakers at 7.5 per cent.

3. Motorists – Fuel is expected to go up after the road maintenance levy went up by Sh3 per litre of petrol and diesel.

4. Tooth paste manufacturers – Import duty rate for plastic tubes used to package toothpaste has been raised from 10 to 25 per cent.

WINNERS

1. Landlords – A tax amnesty was announced for landlords on all arrears to improve revenue collection.

2. Prison officers – They will henceforth enjoy similar duty-free import privileges as members of armed forces.

3. Police – The minister has allocated Sh1.7 billion for medical insurance for the police. He also set aside Sh7.7 billion for leasing of police and prison vehicles.

4. Film makers – To build up film industry, all payments by foreign producers to local actors and crew exempt from withholding tax. Excise duty on imported film products has also been removed.

5. Youth – Employers will get tax rebate for employing 10 or more youth for 6-12 months. This is to encourage hiring of interns and apprentices. Mr Rotich also allocated Sh850 million to Uwezo Fund, Sh500m to Women Enterprise Fund and Sh300m to the Youth Enterprise Fund. He also set aside Sh25bn towards youth employment and re-engineering the National Youth Service.

6. Pregnant women – Sh59.2 billion was set aside for preventive and curative health services of which free maternity health is Sh4.3 billion.

7. Teachers/education – The minister allocated Sh181 billion to TSC including for 5,000 new teachers, and Sh17.6bn for the laptop programme. He also allocated Sh335.7 billion for education: Free day secondary education funds raised to Sh32.7bn, free primary education to Sh14.1bn.

8. Athletes – Mr Rotich set aside Sh1.8 billion to construct stadiums in Nairobi, Mombasa and Eldoret.