Business faults proposed constitution

Business leaders on Thursday faulted the proposed constitution for failing to include clauses on generation of resources.

They argued that while the proposed laws were clear on how resources were to be shared, they did not give clear direction on how this wealth was to be created.

However, the leaders endorsed the draft, saying it introduced a new threshold for investment through counties.

Speaking at a seminar to analyse the proposed constitution in relation to business, they argued that it would have be prudent to indicate how devolved units will generate national resources.

“The draft is out to promote development of infrastructure in the country, and to ensure that all marginalised areas are developed and up to pace with other areas,” said Dr David Ndii, an expert in public finance and economic management.

Once enacted, the new constitution is expected to de-link the State from management of public finance by delegating this function to county governments.

Dr Ndii, however, said the draft will usher in transparency and accountability in public finance expenditure and spur development at the county level.

While giving an overview of the proposed law, Committee of Experts member Ms Njoki Ndungu, admitted that the draft was geared towards devolution, placing little emphasis on generation of resources.

“The constitution is a tool for governance. It endeavours to ensure equity in distribution of national resources to people at all levels in the country,” she said.

Citing other changes the draft would bring, she said that if adopted in the August 4 referendum, it would stop MPs from increasing their salaries.

“If you pass this constitution, you will be able to bar MPs from hiking their salaries as they did on Wednesday,” she said.

Citizenship

Mr Martin Kisuu, a tax partner at PKF said that if the draft sails through, more Kenyans will be able to secure jobs and business opportunities abroad and be able to pay taxes, because dual citizenship will be allowed.

“Thousands of Kenyans have had to give up their citizenship once they attained that of another country,” he said.

He said the tax amnesty for Kenyans in the diaspora announced during the budget speech may not be as successful as hoped in encouraging those abroad to remit more money, because some of them have already renounced their citizenship.

Additional reporting by Winfred Kagwe