Kenyan Government Proposes Increased Fees for Public Services
The National Treasury has suggested that Kenyans might soon face increased levies and fees to access public institution services, as part of an effort to reduce reliance on the exchequer by Ministries, Departments, and Agencies (MDAs).
This proposal is outlined in the Draft 2024 Budget Policy Statement (BPS), which aims to introduce or enhance charges on services to generate non-tax revenues.
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In the document, Treasury Cabinet Secretary Njuguna Ndung’u explained that the government envisions most MDAs becoming self-financing over time.
These policy strategies aim to expand the primary surplus in the fiscal framework and stabilize public debt growth, enhancing the country’s debt sustainability position.
While recommending the introduction of fees and levies, the government emphasizes the intention to keep them reasonable, avoiding unnecessary burden on Kenyans.
To ensure this, there is a plan to set a ceiling on charges imposed by MDAs, taking into account public reaction to proposed fee hikes for services like ID replacement and passport issuance.
Over the next four years, the Treasury calls for MDAs not only to adopt non-tax revenue measures but also to transfer funds to the exchequer.
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This process will be facilitated by implementing the universal pay bill, 222222, with the Ministry of Lands and the State Department for Immigration and Citizen Services among the first MDAs slated to adopt these measures.
According to the BPS, the government anticipates that implementing non-tax revenue measures will contribute to lowering the fiscal deficit to GDP. In the financial year 2024/25, all MDAs and Sector Working Groups are directed to prepare budgets adhering to hard sector ceilings and adopt a value chain approach.
Treasury Principal Secretary Chris Kiptoo highlighted that the policy measures outlined in the 2024 BPS aim to enhance economy-wide efficiencies, create a supportive environment for business and investment growth, reduce the cost of living, and improve the well-being of Kenyans.
He added, “The tight fiscal stance is expected to reduce debt vulnerabilities through the implementation of reforms to broaden the domestic tax base and improve tax compliance.”
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Kenyan Government Proposes Increased Fees for Public Services
