2. 1. FELLOW KENYANS,asyourPresident,Ihavea
constitutional duty to ensure that legislative
instrumentspresentedformysignatureconform
to ournationalaspirations,fulfilgovernment’s
basic obligations to our people, and are
implementable.
2. The Finance Bill2018/19 broughtto me
yesterdayfellshortofthisthreshold.Itprotected
thestatusquoandsacrificedthebiggervision.It
took the easy path,instead ofrising to the
challengesofourtime.Itwasgoodpolitics,but
badleadership.
3. Asyoumightknow,IreturnedittoParliament
3. withanumberofmodifications,designedtocure
these shortcomings. The 2010 constitution
widened Kenya’s democratic space; it also
fundamentallyalteredthestructuresandfunctions
ofgovernment.Withit,wehaveseenasubstantial
increase in political and bureaucratic
representationateverylevel:wenow havetwo
housesofParliament;theNationalAssemblyhas
grownfrom 290to349members;andournew
Senatehas67electedandnominatedmembers.
Wealsohaveforty-sevengovernors,forty-seven
deputy governors,and forty-seven new county
assemblies–inwhichsitmorethanathousand
4. MCAs.
4. Additionally,we have sixteen independent
officesandcommissions,excludingthejudiciary.
Asyoucansee,theenjoymentofournewrightsis
expensive,unprecedentedlyso.
5. Weareveryproudofthespeedwithwhichwe
have implemented the new constitution,and
devolved government to the people. Having
transferred over a trillion shillings to county
governments since 2013,we have seen major
improvements in service delivery, and
improvementsinthelivesofKenyans.
5. 6. That’swhywewillcontinuetoprotectand
entrench devolution and the new constitutional
order,notwithstandingthecost.
7. Inadditiontosupportingdevolution,yourtaxes
havebeenusedforanaggressiveandsuccessful
developmentagenda.
8. Today,millionsofKenyanstravelonnewroads
builtby this administration;others are under
construction. Millions of homes have been
8. shillingssince2013isabolddecision.Building
ambitious railand road infrastructure thatis
unparalleled in our region is bold. Fighting
corruption and demolishing illegalstructuresis
boldtosomeandunpopulartoothers.Initiating
major social-protection programmes for our
vulnerableandelderlyisbold.Allofthiswehave
donewithoutanysubstantialincreaseintaxes.
13.Now Iwilladdress the VAT on petroleum
products.ButbeforeIdoso,Iwanttomentiontwo
things. Reforms to VAT taxation were first
introduced in theVAT Actof2013.Underthe
transition arrangements passed by Parliament,
9. certaingoodsincludingpetroleum productswere
tobeexemptfrom VAT,toallow forthegradual
implementationofthenew tax.Thisexemption
wastoexpireinAugust2016butwasextendedfor
afurtherperiodoftwoyears,totheendofAugust
2018.
14.Thepurposeofthistaxwassimple.Wehave
topayforthenew constitutionalorder,andthe
publicservicesonwhichKenyansdependalike.
These cost money. Further delay in the
implementationofthetaxwouldcompromiseour
abilitytodeliverbasicservicestoKenyans,andto
13. concerning corruption and economic crime.
Further,Ihave increased the allocation to the
OfficeoftheDirectorofPublicProsecution,andto
theinvestigativeagencies.Iexpectthesebodiesto
worktogethertohelpusrestoreourfaithinpublic
institutions.
21.AsPresident,itismyresponsibilityto put
Kenyansfirst,thoselivingtoday,andyourchildren,
whowillinheritthecountrytomorrow.Thatmeans
Imustbalancebetweenshort-term painandlong-
termgain.
22.Fellow Kenyans, we have a country to
transform,andwemustmakebolddecisionsto