KENYA: KEPSA’S POSITION ON ALLOCATION OF FUNDS TO PARLIAMENT TO PAY TAX ARREARS AGAINST CONTIGENCY FUND

from Ammbbaassaah Odhiambo
September 2nd, 2011
PRES STATEMENT

The current drought and famine situation in the country is a wake up call to the Government to initiate long-term measures to address the food insecurity in the country. KEPSA would like to thank the People of Kenya, the private sector, Development Partners and the Kenya Red Cross Society for the overwhelming response under the Kenyans for Kenya Initiative. The support especially from the Public was a clear indication that Kenyans are tired by the failure of the Government to resolve the food insecurity issue which has historically befallen this county every year.

Several leading audit firms have been engaged in the campaign to monitor the utilization of the funds raised and disbursement of relief supplies through the initiative to ensure accountability. This is an intervention that has been overwhelmingly supported by Kenyans so citizens have to ensure that resources mobilized are utilized for the intended objectives.

It is almost given, that every other year drought will haunt the Northern part of the country and the government will deny the severity of the situation. Public funds have previously been set aside to curb the calamity through long term measures as development of water, irrigation and livestock projects, and cultivatation of drought-resistant crops. But the big question is, have these projects seen the light of the day, or have they been established but are poorly sustained?

It is unfair that the government is unable to fulfill its obligation to realize freedom from hunger and the basic right to adequate food of acceptable quality for all Kenyans as obligated by the Constitution. It does not make sense for taxpayers to make donations for a cause that should be covered by taxes already paid by citizens and corporate organizations. Kenyans are currently battling other social injustices in the name of

Members’ of Parliament plans to increase their salaries and their refusal to pay taxes. The commendable spirit displayed by corporates and Kenyan citizens at large in the ‘Kenyans for Kenya’ campaign should be replicated to fight these injustices too.

It is worth noting that the initiative raised close to Ksh.IB within a short time. This is a manifestation of Kenyan solidarity with their hungry brothers and sister. It further confirms that Kenyans are peace-loving citizens who only get distracted by the political class.

Base on the above KEPSA would like to make the following observations:

1) KEPSA has repeatedly called on the MPs to pay taxes. We thank the Hon. MPs who responded by clearing with Kenya Revenue Authority (KRA). The current negotiations between Treasury and Parliament to top up their salaries by allocating extra Ksh.2B to Parliamentary Service Commission is tantamount to accepting unlawful remuneration.

2) The action of the MPs and demands for the top up from Treasury amounts to blackmail.

3) It is painful that Parliament ‘raided’ the Contingency Fund which caters for National Emergencies like relief food, fire and other disasters to adjust their salaries for the expected loss of their salaries due to taxation.

4) KEPSA is calling upon the country’s leadership, including the President, the Prime Minister, the Minister for Finance and the Speaker of the National Assembly to withdraw this unconcealed attempt by MPs to steal from Kenyans, failure to lead and to circumvent their responsibility and duty to obey the Constitution.

5) The re-allocation shows that the MPs are insensitive to millions of Kenyans who are sleeping hungry while the cost of living continues to go up.

In conclusion, KEPSA reiterates its position that MPs should pay taxes like other Kenyans and there should be no more salary increment. The Constitution is clear that further review of Salaries should be handled by the Salaries and Remuneration Commission.

KEPSA is the national apex body of the private sector in Kenya. KEPSA’s membership comprises Business Membership Organizations (BMOs) and corporate organizations. The combined number of direct and indirect organizations that KEPSA represents, when membership of all BMOs is accumulated, totals in excess of 80,000 corporates.

This is in all sectors of the economy including manufacturing, banking, infrastructure, tourism, energy, ICT, agriculture, fishing among others. KEPSA provides a unified voice for the private sector to engage and influence policy formulation and implementation through the public-private partnership model.

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