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  • January 31, 2023
  • Last Update July 1, 2022 11:51 am
  • Nairobi

Kenya Kwanza Manifesto Key Pillars

Kenya Kwanza Manifesto Key Pillars

Deputy President William Ruto has finally unveiled the Kenya Kwanza alliance manifesto, in which he elaborates the policies that informed his much touted bottom-up economic model.

According to DP Ruto, an economic policy should ensure capital in a manner that benefits the most amount of people and the country, at large.

He cited a report which stated that only 19 million Kenyans are employed currently; out of which only 3 million (15%) are in formal jobs – or what he terms as the ‘lottery economy’ – while the other 16 million (85%) work in Micro. Small and Medium sized Enterprises (MSME).

“According to Kenya National Bureau of Statistics (KNBS) data in 2016, licensed stable MSMEs generated an operating surplus of Ksh.50,000 per employee a month, while those in the ‘lottery’ economy generated Ksh.3,250,” read the manifesto.

“In other words, the workers in formal MSMEs were 15 times more productive than those in the lottery economy.”

DP Ruto noted that the bottom-up economic model will be geared towards bringing down the cost of living,  eradicating hunger, creating jobs, expanding the tax base, improving the country’s foreign exchange balance as well as inclusive growth.

To achieve all these, the Kenya Kwanza team has settled on six core pillars, namely: Agriculture; Micro, Small and Medium Enterprise (MSME) economy; Housing and Settlement; Healthcare; Digital superhighway and creative economy; Environment and climate change.

The DP hence pledged that, if elected to the top office, his Kenya Kwanza government will allocate Ksh.250 billion between 2023 and 2027 to the agriculture sector, which contributes half of Kenya’s GDP.

This amount will be used to provide adequate affordable working capital to farmers as well as in deploying modern agricultural risk management instruments to ensure that farming is profitable and productive.

It will also transform farmers from food deficit to surplus producers, raise productivity of key value food chains, and reduce dependence on basic food imports by 30 per cent.

Ruto said his government will also allocate the same amount to the MSME sector as well as the housing and settlement agenda, which will consist of Ksh.50 billion from the budget and a further Ksh.200 billion from pension funds.

Deputy President William Ruto also outlined his plan for the National Hospital Insurance Fund (NHIF) if he ascends to power in August.

“We recognise that at present, the NHIF falls considerably short. Kenya Kwanza is committed to implementing the reforms required so as to build this trust as recommended by stakeholders,” Ruto said.

In his proposed reforms, Ruto says that each Kenyan will only be allowed to remit Ksh.3600 per year or Ksh.36,000 for a single household in the same timeline.

This means that in a single month, one will contribute Ksh.300 for individuals and Ksh.3000 for households respectively.

“If the Ksh.150 million out-of-pocket payments were converted into contributions to NHIF, each Kenyan would have to contribute Ksh.3000 per year or Ksh.12,000 for each of the 12 million households,” the DP said.

“Our preliminary analysis shows that a progressive contribution system can achieve the Ksh.200billion  requirement with contributions ranging from Ksh.300 to Ksh.3000 per household per month (Sh3600 to Sh36,000 per year).”

This, the DP explains, will be able to amount to the Ksh.220 billion required by the NHIF to cover both the secondary and tertiary pillars works.

Initially, people earning Ksh.100,000 were required to contribute at a rate of 1.7 per cent, both for an individual or for a couple.

With an illustration of the initial rates, Ruto said that in a case where an individual was earning Ksh.100,000 and he or she remits Ksh.20,400 per year and for a couple Ksh.40,800 in the same period, that for Ruto is unequal since the two gets similar benefits.

Ruto argues that the move aims at shifting insurance from an individual and placing the same on a family or a household to maximise benefits and reduce burden.

“This is clearly highly inequitable. We have proposed to change the contribution to family/household rather than an individual as is the case with private insurance,” said the DP.

“Consideration will be given to unbundling the NHIF along the lines of the pension fund system. This would entail the separation of the Fund management, claims administration and regulatory functions.”

At the same time, DP Ruto underscores that his agenda will be materialised by his initiative of the proposed Primary Health Fund, the Hustler Fund and the farmer organisation initiative.

He said his government would leverage the aforementioned initiatives to set up occupational schemes for trades e.g Boda Boda and market women SACCOs.

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