Gamblers, job seekers among budget losers

Job seekers are among the biggest losers in this year’s budget after the government froze employment for the next one year.

National Treasury Cabinet Secretary Prof. Njuguna Ndung’u says this is among a raft of measures meant to contain increasing re-current expenditure.

The government plans to reduce the wage bill that stands at Ksh 1.1 trillion through increased automation of services.

As part of these efforts, public employment will be frozen for the next one year.

Kenyan farmers are also among those who are likely to be negatively affected by this year’s budget after the National Treasury zero-rated importation of eggs, onions and other food items from EAC.

Local farmers have been complaining that imports from EAC pose unfair competition since the cost of production in Kenya is higher.

The cost of alcoholic beverages are also likely to increase after the government changed the basis of charging excise duty to the centiliter of pure alcohol.

Excise duty on betting, gaming, lottery and price competition has been increased from 15pc to 20pc as the government seeks to curb the vice.

Small banks are also among the biggest losers after a proposal that they progressively increase their core capital from the current minimum of 1Ksh to Ksh 10 billion.

The central bank of Kenya is expected to issue guidelines and timeframes for this.