BY SOLOMON KIRIMI
Agriculture is one of the losers in the
fiscal expenditure estimates released by the finance minister Njeru Githae on
Thursday, despite the fact that sector contributes 24 percent of Gross Domestic
product.
Tax experts have raised concerns that the
envisaged economic growth will continue falling short of expectations until the
sector is well funded "There was no mention of extension services, debts
waivers for farmers were too little for a real impact and nothing much on value
addition, which leaves the sector with its recurrent financial
challenges," said Kuria Muchiru, Country Senior Partner at PwC Kenya.
Agriculture was allocated Sh53.5 billion
accounting for less than 2 per cent of the budget, contrary to Maputo agreement
which commits African countries to allocate at least 10 per cent of their
budgets to agriculture to feed the continent. Kenya is a signatory of the
agreement.
Ernst & Young Kenya chairman Gitahi
Gachahi said the Sh8 billion for irrigation, Sh2 billion for famine relief and
5 billion for contingency measures are good attempts but misplaced it terms of
priority and sustainability.
"If part of this money was utilised for
building reservoirs and sustainable food production, these costs would not
recur every year," said Gachahi He said the potential of agricultural
production remains unexploited due to lukewarm support from the state leading
to acute food insecurity, seasonal inflation volatility arising from food
costs, and stagnation in employment in the sector.
"Many of the Budget's priorities
resonate with what the private sector expects to see," said Alphan Njeru,
a partner with PwC Kenya and a public sector expert. "But we must ask why
close to 60% of the 2011/2012 development expenditure was not spent. Now we
have the constitutional authority to demand quarterly updates on the progress
of implementation of projects outlined in the budget, to ensure resources are
utilised for the intended purposes and on time," said Njeru.
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