Kenya re­leases 2018/19 bud­get es­ti­mates of eye-pop­ping $31b

Funds to en­ergy, in­fra­struc­ture, hous­ing, re­search and agri­cul­ture have been re­vised up­wards

The East African - - NEWS - By JAMES ANYANZWA Spe­cial Cor­re­spon­dent

Kenya has tabled the bud­get es­ti­mates for its 2018/2019 fis­cal year with the fo­cus on lay­ing a strong foun­da­tion for the achieve­ment of Pres­i­dent Uhuru Keny­atta’s grand plan of cre­at­ing jobs, re­duc­ing poverty and inequal­ity and im­prov­ing the gen­eral liv­ing con­di­tions of the cit­i­zens dur­ing his fi­nal term in of­fice.

Last week Kenya’s par­lia­men­tary bud­get com­mit­tee rec­om­mended an in­crease in the cash po­si­tions of key in­sti­tu­tions re­spon­si­ble for fight­ing graft, main­tain­ing se­cu­rity and au­dit­ing spend­ing of pub­lic fi­nances as part of ef­forts to im­prove gov­er­nance and re­duce the cost of do­ing busi­ness in the coun­try.

The com­mit­tee chaired by Kikuyu MP Ki­mani Ichung’wah also rec­om­mended an up­ward re­vi­sion in the bud­gets of the Min­istry of En­ergy, State de­part­ments of Hous­ing, In­fra­struc­ture, Ir­ri­ga­tion, Agri­cul­ture and Re­search.

Ex­pen­di­ture pres­sure

The Ju­bilee ad­min­is­tra­tion is seek­ing to take mea­sures un­der the Agenda Four to boost man­u­fac­tur­ing, en­hance food se­cu­rity, cre­ate af­ford­able hous­ing and achieve uni­ver­sal health cov­er­age to boost growth, cre­ate jobs and ul­ti­mately pro­mote in­clu­sive growth.

As a re­sult, the gov­ern­ment has pri­ori­tised pro­grammes and re­forms to be im­ple­mented over the next five years (201822) to achieve the grand plan which will also form part of the legacy of Pres­i­dent Keny­atta’s ad­min­is­tra­tion.

But faced with mount­ing ex­pen­di­ture pres­sure and fall­ing rev­enue col­lec­tions Na­tional Trea­sury Cab­i­net Sec­re­tary Henry Rotich has ex­tended an olive branch to the pri­vate sec­tor to im­ple­ment the mega in­fra­struc­ture projects un­der the Big Four Agenda jointly.

On June 14, Mr Rotich will an­nounce the tax­a­tion mea­sures he in­tends to take to fund a record Ksh3.07 tril­lion ($30.7 bil­lion) bud­get for the 2018/2019 fis­cal year com­pared with Ksh2.6 tril­lion ($26 bil­lion) in the cur­rent fis­cal year,which will in­clude bor­row­ing an ad­di­tional Ksh562.74 bil­lion ($5.62 bil­lion).

Kenya’s debt bur­den es­ti­mated at over Ksh4 tril­lion has been an is­sue of con­cern to the par­lia­men­tar­i­ans and to the in­ter­na­tional fi­nan­cial in­sti­tu­tions such as the IMF and the World Bank.

This year, debt-re­lated pay­ments (in­ter­est and redemp­tion pay­ments) alone amount to Ksh870.6 bil­lion ($8.7 bil­lion).

Ac­cord­ing to the bud­get es­ti­mates tabled in par­lia­ment last week the Bud­get com­mit­tee rec­om­mended an ad­di­tional Ksh1.25 bil­lion ($12.5 mil­lion) to be al­lo­cated to­wards the strate­gic ini­tia­tives of the Agenda Four un­der the sub­pro­gramme bud­get for­mu­la­tion, co­or­di­na­tion and man­age­ment while Ksh75 mil­lion ($750,000) be al­lo­cated to the Ethics and Anti-cor­rup­tion Com­mis­sion for the ac­qui­si­tion of head­quar­ters and op­er­at­ing ex­penses.

An ad­di­tional Ksh30 mil­lion ($300,000) has be al­lo­cated to­wards con­struc­tion of po­lice hous­ing in the state de­part­ment of In­te­rior while Ksh200 mil­lion ($2 mil­lion) al­lo­cated to the Of­fice of the deputy in­spec­tor gen­eral Kenya Po­lice Ser­vice’s polic­ing ser­vices pro­gramme.

An ad­di­tional Ksh100 mil­lion ($1 mil­lion) has been al­lo­cated for crim­i­nal in­ves­ti­ga­tion ser­vices while am ex­tra Ksh8.7 bil­lion ($87 mil­lion) al­lo­cated for the re­pair of the in­fra­struc­ture de­stroyed by re­cent flood­ing.

The Of­fice of the Au­di­tor Gen­eral will re­ceive an ad­di­tional Ksh1 bil­lion ($10 mil­lion) to cater for per­son­nel emol­u­ments, out­sourc­ing of au­dits and other con­sul­tan­cies bring­ing its to­tal al­lo­ca­tion to Ksh6 bil­lion ($60 mil­lion).

Con­ducive en­vi­ron­ment

Kenya hopes to main­tain its in­vest­ments in pro­grammes that will cre­ate a con­ducive busi­ness en­vi­ron­ment for in­vest­ment and job cre­ation and pro­vide 500,000 af­ford­able hous­ing units to the poor.

In­vest­ments in the Big Four ar­eas are ex­pected to trans­form lives by cre­at­ing much-needed jobs for Kenyans, im­prove liv­ing con­di­tions, lower the cost of liv­ing and re­duce poverty and inequal­ity.

A to­tal of Ksh68 bil­lion ($680 mil­lion) has been al­lo­cated to the State de­part­ment for En­ergy, with Ksh13 bil­lion go­ing to­wards power gen­er­a­tion and Ksh53 bil­lion ($530 mil­lion) to­wards power trans­mis­sion and dis­tri­bu­tion.

The state de­part­ment for Ir­ri­ga­tion will re­ceive Ksh17.97 bil­lion ($179.7 mil­lion) while Ksh5.56 bil­lion ($55.6 mil­lion) will go to the state de­part­ment for Agri­cul­ture and Re­search.

In­dus­try has been given Ksh6.91 bil­lion ($69.1 mil­lion) while the Na­tional In­tel­li­gence Ser­vice gets Ksh31 bil­lion ($310 mil­lion).

Oth­ers are Ksh24 bil­lion ($240 mil­lion) to­wards ICT in­fra­struc­ture de­vel­op­ment, Ksh2 bil­lion ($20 mil­lion) to youth train­ing and de­vel­op­ment, Of­fice of the Di­rec­tor of Pub­lic Prose­cu­tions Ksh2.91 bil­lion ($29.1 mil­lion), Ethics and Anti-cor­rup­tion Com­mis­sion Ksh2.92 bil­lion ($29.2 mil­lion) and Ksh32 bil­lion ($320 mil­lion) to the de­part­ment for hous­ing, ur­ban, de­vel­op­ment and pub­lic works.

Do­mes­ti­cally, the econ­omy is ex­posed to chal­lenges such as ad­verse weather con­di­tions and pub­lic ex­pen­di­ture pres­sures, es­pe­cially re­cur­rent ex­pen­di­ture.

As we em­bark on The Big Four, we are con­scious of our lim­ited fis­cal space and will there­fore en­gage pri­vate sec­tor part­ners.” Henry Rotich, Kenya Trea­sury CS

Pic­ture: File

Large in­fra­struc­ture projects such as the Kisumu oil pipe­line jetty are ex­pected to spur job cre­ation and re­gional trade.

Newspapers in English

Newspapers from Kenya

© PressReader. All rights reserved.