By Dianah The Kenyan government, represented by spokesperson Isaac Mwaura, has outlined the Bottom-Up Economic Transformation Agenda (BETA Plan), a strategic framework aimed at stimulating long-term economic growth, decreasing reliance on foreign debt, and fostering greater social equity across the nation.Launched two years ago, the BETA Plan has been instrumental in addressing Kenya’s pressing economic challenges by prioritizing job creation, equitable income distribution, and overall economic stability. This vision is geared towards building a thriving environment for all Kenyans, with a focus on sustainable growth that benefits every sector and community.One of the cornerstone objectives of the BETA Plan is establishing a sound fiscal policy. Recognizing the risks of growing public debt, the government is dedicated to achieving a more sustainable debt position by shifting the country’s economy from a reliance on foreign borrowing to strengthening domestic revenue sources. To this end, the government is implementing balanced policies that will manage existing debt effectively while reducing dependency on external loans. This shift is also expected to create an economy that’s resilient and better equipped to meet the needs of its citizens.Tax reform is a central pillar of the BETA Plan, aimed at fostering growth, promoting fairness, and safeguarding social equity. New legislation has been introduced to create a fair and equitable tax framework, ensuring that revenue collection is balanced and reflects the contributions of all Kenyans. To address existing fiscal challenges, the government has proposed a justified tax amnesty and reductions in tax expenditures that previously limited revenue available for essential services. This restructured tax approach is expected to enhance the government’s capacity to fund critical development projects while reducing the financial strain on ordinary citizens.Further strengthening the framework for sustainable economic growth, the government has enacted tax amendments to secure timely funding for county governments, promoting greater social and economic welfare at the local level. These provisions are designed to support counties in meeting their service delivery mandates, ensuring that essential services are not interrupted by fiscal shortfalls.To support Kenya’s growing digital economy, the BETA Plan has introduced targeted reforms that expand the digital tax base to include a wider array of services such as ride-hailing, food delivery, freelance, and other professional services. The plan also imposes a “significant economic presence” tax on foreign digital firms operating in Kenya, ensuring these companies contribute fairly to the national economy and aligning Kenya’s tax system with global best practices.In addition to supporting the digital economy, the BETA Plan includes multiple reforms aimed at benefiting employees and businesses. These reforms increase non-taxable benefits, such as meal allowances, while also raising deductions for pension contributions. Tax relief on health and housing contributions has been introduced to improve the disposable income of Kenyan workers and encourage savings for the future. These changes reflect a commitment to enhancing employee welfare while promoting Kenya’s long-term socio-economic goals.Another significant measure is an amendment to the Public Procurement and Asset Disposal Act, mandating that at least 40% of goods and services procured by the government be sourced from local manufacturers. This policy is expected to invigorate the manufacturing sector, promote job creation, and strengthen Kenya’s reliance on local resources. By fostering a self-sustaining manufacturing ecosystem, the government aims to boost domestic economic growth and support small and medium enterprises.Debt reduction remains a key priority of the BETA Plan. Currently, Kenya’s public debt stands at 68% of GDP, down from a previous high of 73%. Through reforms designed to boost local revenue, the government is committed to gradually reducing foreign debt and aligning Kenya’s fiscal policy with global standards. Recently, the International Monetary Fund (IMF) extended a Ksh. 78 billion facility to Kenya through the Extended Credit Facility (ECF), underscoring international confidence in Kenya’s economic direction. This funding is expected to bolster Kenya’s fiscal stability, enhance foreign exchange reserves, and increase resilience against external economic shocks.Transparency and effective governance are essential components of the BETA Plan. Mwaura emphasized the government’s dedication to using public funds responsibly and transparently, particularly in sectors such as health, housing, and education. A key initiative under this framework is the recent establishment of the Social Health Authority (SHA), which has replaced the National Hospital Insurance Fund (NHIF). Since its implementation, SHA has registered over 14 million Kenyans, providing them with access to quality healthcare without out-of-pocket costs. The government encourages private healthcare providers to join SHA to alleviate the burden on public hospitals, where demand for services has surged.Agriculture, a critical sector of Kenya’s economy, remains a focus of the BETA Plan. In a bid to support farmers and stabilize staple food prices, the National Cereals and Produce Board (NCPB) has set a minimum maize price of Ksh. 3,500 per 90 kg bag. This intervention, combined with the government’s fertilizer subsidy program, aims to protect farmers from fluctuating prices and reduce retail costs for essential items such as maize flour, sugar, and cooking oil. Mwaura noted that this policy, along with the opening of NCPB depots nationwide, demonstrates the government’s commitment to improving farmers’ livelihoods and ensuring food security.In conclusion, the BETA Plan marks a transformative step in Kenya’s economic journey, combining fiscal discipline, equitable tax reforms, and strategic investment in critical sectors. With a focus on economic resilience and sustainable growth, the government aims to create a stable economic environment that benefits all Kenyans and positions Kenya as a stronger, more self-reliant nation.