The second group of cabinet secretaries in President William Ruto’s administration has been sworn in, after only one nominee was found unsuitable to assume office.
The 19 cabinet secretaries consist of Kithure Kindiki (Interior and National Administration), Debra Barasa (Health), Alice Wahome (Lands, Public Works, Housing and Urban Development), Julius Ogamba (Education), Soipan Tuya (Defence), Andrew Karanja (Agriculture and Livestock Development), Aden Duale (Environment, Climate Change and Forestry), and Eric Mugaa (Water, Sanitation and Irrigation).
The list also includes Davis Chirchir (Roads and Transport), Margaret Nyambura (ICT and Digital Economy), John Mbadi (National Treasury and Economic Planning), Rebecca Miano (Tourism and Wildlife), James Opiyo Wandayi (Energy and Petroleum), Kipchumba Murkomen (Youth Affairs, Creative Economy and Sports), Hassan Joho (Minning, Blue Economy and Maritime Affairs), Alfred Mutua (Labour and Social Protection), Wycliffe Oparanyah (Co-operatives and Micro, Small and Medium Enterprises Development), and Justin Muturi (Public Service and Human Capital Development).
Stella Soi Langat, nominee to the ministry of Gender, Culture, The Arts and Heritage did not make it to the cabinet.
A report by the parliamentary vetting committee says she did not demonstrate adequate knowledge of topical, administrative and technical issues touching on the portfolio to which she had been nominated.
Mbadi’s Plans for Treasury
Appearing before the vetting committee, the incoming Cabinet Secretary National Treasury and Economic Planning John Mbadi said he will ensure transparency in in public debt by making the debt register a statutory document to be published annually for the information of the public.
Additionally, he said he will prioritize concessional loans over commercial borrowing to invest in viable projects.
On measures to improve tax collection and expand tax base without overburdening Kenyans, the CS said the solution to revenue mobilization would be, in consultation with the leadership of KRA, to implement reforms including building capacity of KRA officers, automation and re-engineering of the porous tax collection systems to prevent leakage occasioned by smuggling and faulty systems.
Lending Rates
Mbadi confirmed that the base lending rates by the time he was appearing before the committee was at 13 per cent. However, the Central Bank of Kenya (CBK) revised the rate downwards on Tuesday by 25 basis points to 12.75 per cent, reducing the cost of loans for the first time in four years.
In his view, he said the lending rate needs to be revised to allow cash flow to the private sector for business growth.
Mbadi says he is a firm believer and supporter of devolution and vowed to safeguard counties financial allocations by ensuring timely disbursements to secure proper provision of critical county government services.
On VAT refunds as a loophole for pilferage of funds, Mbadi said that reclassification of items as tax-exempt instead of zero-rated would significantly reduce tax expenditure on tax refunds. He proposed installation of a system that captures tax advances to avoid tax refund claims that may be unmerited and unverifiable.
Mbadi emphasized the need for amendment of the existing laws to criminalize failure to pay pending bills and the approval of fictitious pending bills. He will oversee completion of the automated procurement system by January 2025 to mitigate the loopholes caused by a mechanical procurement process.
He committed to also explore an end-to-end procurement style to guarantee value for money and prudent use of resources. Under his leadership, he said he will ensure the accounting officers in the various MDAs would be held culpable for non-compliance with the provision of Public Finance Management Act (PFM Act).
To ensure compliance with requirement of PFM Act, the incoming Treasury Cabinet Secretary echoes the need for synchronized planning, budgeting and cash management.
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