The Division of Revenue Bill (DoRB), 2014 is at the top of the agenda for parliament in their next couple of sittings, and as such, it is in form to explore its implications.

This bill is the first step in our annual budgeting cycle, and is particularly important as it should work to ensure the success of devolution through adequate allocations to county governments. The revenue is based on the government’s 2011/12 audited revenue, which comes to KES 682.1 billion.

This debate, as with many others, has become overtaken by debates fuelled by supremacy battles between national and county governments. … Read More

The East African Community (EAC), a regional intergovernmental organization, was re-formed in 1999 by the Republic of Kenya, the United Republic of Tanzania and the Republic of Uganda after the collapse of the original EAC in 1977. The Republic of Rwanda and the Republic of Burundi became member states in 2007, and South Sudan has expressed interest in joining the community.

Its vision is a prosperous, competitive, secure, stable and politically united East Africa, and its aim is to widen and deepen integration and co-operation among partner states politically, economically, socially and culturally for their mutual benefit. So far, it … Read More

After the Westgate attack, an American friend who works as a freelance journalist based in Kenya tweeted that he was tired of listening to a government that spouts lies and a nation that was unwilling to question it. To which I responded that several questions were being asked daily, minute by minute even, especially online – all he had to do was check on Twitter. He responded that we can’t change a government via Twitter – that it’s lazy – and we should get our media to ask real questions.

This got me thinking. Countries in Africa, Latin America and … Read More

In 2013, the Value Added Tax (VAT) Act passed by parliament increased the number of taxable goods – by reducing the number of exempt and zero rated goods. The government hopes to raise an additional Sh. 10 billion per month in doing so. The standard rate of VAT remains 16%.

In theory, this is what we should aim for. VAT has several advantages: it covers both goods and services. It is also less risky when it comes to revenue leakage. VAT is self-enforcing – it uses an invoice-based credit mechanism in its administration, which facilitates collection and enforcement; even if … Read More