Cabinet Secretary for National Treasury, John Mbadi, found himself at the centre of public scrutiny during his first visit to Bunge La Mwananchi, with questions surrounding government spending and taxation.
His stance on fiscal matters, particularly in light of recent government expenditure and tax policies, took the spotlight as he faced an unforgiving crowd.
One of the key issues raised was the government's approach to taxation. With concerns about the impact on taxpayers, Mbadi reassured the public that there would be no increase in Value Added Tax (VAT) in the near future.
“We are not increasing VAT at all actually, the finance bill this year may not have any tax adjustment upward in terms of rates, we cannot overtax Kenyans anymore we have reached a limit where we are saying no more space for taxation on employment income,” Mbadi stated, defending the government's position amidst growing fears of further tax hikes.
However, questions soon turned to the government's spending priorities, particularly the high cost of renovating State House.
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Critics were quick to point out the contrast between the lavish spending on such projects and the government's austerity measures.
In response, Mbadi defended the renovations, suggesting that the upgrades were necessary.
“We have renovated, so what you need to tell me is don’t spend any more money on renovation isn’t it? Because if you look at that house now it has become nice it has been renovated and cost whatever it cost,” he said.
The Cabinet Secretary also found himself on the defensive regarding his use of government-funded helicopters.
Mbadi explained that his occasional helicopter travel was necessary for government business, particularly when faced with tight schedules.
“I have used a chopper before on three occasions to government functions and I have just told you about going to Tana River. I left Nairobi after a meeting at State House to go to Tana River and back, I don’t know whether I’d have made it using my car,” he explained.
He went further to clarify his rural travel, questioning whether the chopper would drop him on the road if it had already taken him to his destination.
"From there I had another function in Kisumu so let me ask you, once I finish that and I want to go to my rural home, does the chopper drop me on the road and come back to Nairobi and I walk to my home the chopper will drop me at my home?" he posed.
Despite the tough questions, Mbadi sought to reassure the crowd, explaining that the government was focused on future reforms.
He pointed to the controversial social health insurance fund and the housing levy as vital measures in achieving long-term change, hoping to ease public concerns over the direction of the government's financial policies.
Although his attempts to justify government actions were met with scepticism, Mbadi stood firm, reiterating the government's commitment to fiscal responsibility and national progress.
However, the public's discontent remained palpable, with many questioning whether the government could truly balance its priorities in the face of rising taxation and public spending.
