Treasury cabinet secretary Njuguna Ndungu on Thursday presented to Parliament the Financial Year 2024/2025 budget, which the Kenya Kwanza administration says will build upon progress so far made to revitalize economy.
According to the President William Ruto led administration, economic indicators such as inflation, exchange rate, balance of payments, fiscal policy, and monetary policy points to sustained recovery and a stable growth.
“In line with the administration’s fiscal consolidation strategy, which seeks to reduce government borrowing, the proposed budget consolidates these efforts by reducing the budget deficit by nearly 50 per cent. This is realized through reduction of the deficit from Ksh 1 trillion in Financial Year 2021/2022, Ksh 925Bn in Financial Year 2023/2024 to Ksh597Bn in Financial Year 2024/25,” Cabinet said on Thursday.
The key highlights of the proposals in this year’s budget include the advancement and realization of economic and social rights such as universal health coverage, freedom from hunger, education, clean water, and sanitation.
The budget further positions the economy for export-led growth while allocating additional resources to facilitate production and completion of ongoing infrastructure projects. It has also enhanced allocations to the County governments, which now at Sh400 billion.
Below, the Budget at a glance:
Kenya’s economy expected to grow 5.5 per cent in 2024, supported by among other measures human capital development, reforming government institutions and digitisation of services.
The government project’s total revenue collection, including appropriation in-aid for the FY 2024/25 budget to be Ksh3,343.2 billion, equivalent to 18.5 per cent of GDP. CS Ndung’s said of this, ordinary revenue is projected at Ksh2,917.2 billion, equivalent to 16.2 per cent of GDP, Ministerial Appropriation-in-Aid is projected at Ksh 426.0 billion. Grants to this budget are projected at Ksh 51.8 billion or 0.3 per cent of GDP.
Total expenditure in the FY2024/25 budget is projected at Ksh 3,992.0 billion or 22.1 per cent of GDP. Of this, recurrent expenditures will amount to Ksh 2,840.0 billion or 15.7 per cent of GDP. Development expenditures, including allocations to domestic and foreign
financed projects, Contingency Fund and Equalization Fund is Ksh 707.4 billion equivalent to 3.9 per cent of GDP.
Total allocation to County Governments is projected at Ksh 444.5 billion of which equitable share is Ksh 400.1 billion.
Agriculture Sector: The CS proposed Ksh54.6 Bn allocation ( Ksh 10.0 billion for the Fertilizer
Subsidy Programme; Ksh 6.1 billion for the National Agricultural Value Chain Development, Ksh 2.5 billion for Emergency Locust
Response; Ksh 2.4 billion for the Enable Youth and Women in Agriculture; Ksh 747.0 million for Small Scale Irrigation and Value Addition Project; and Ksh 642.5 million for the Food Security and Crop Diversification Project).
Micro, Small and Medium Enterprise (MSME) Economy: Hustlers Fund Ksh 5.0 billion, Ksh 200 million for the Youth
Enterprise Development Fund; Ksh 162.5million for the Centre for Entrepreneurship Project; and Ksh 1.9 billion for Rural Kenya
Financial Inclusion Facility.
Housing and Settlement: Ksh 3.0 billion to Kenya Mortgage Refinance Company, Ksh 32.5 billion for construction of Affordable Housing Units, Ksh 15 billion for construction of Social Housing Units, Ksh 11.3 billion for the Kenya Informal Settlement Improvement Project -Phase II, Ksh 1.0 billion for the construction of Housing Units for the National Police and Kenya Prison, and Ksh 444.0 million targeted to support construction of County Headquarters.
Health Sector allocated Ksh 127.0 billion: Ksh 4.2 billion for Universal Health Coverage Coordination and Management Unit, Ksh 2.0 billion for Free Maternity Health Care, Ksh 3.6 billion for the Managed Equipment Services; Ksh 861.5 million medical cover for the orphans, Ksh 4.6 billion for Vaccines and Immunization Programme, Ksh 1.1 billion to strengthen Cancer Management in Kenyatta National Hospital, Ksh 2.0 billion to the Emergencies, Chronic and Critical Illness Fund.
ICT Sector allocated Ksh16.3 billion: Ksh 1.1 billion for Government Shared Services, Ksh 704 million for Digital Superhighway, Ksh 2.3 billion for the Construction of Kenya Advanced Institute of Science and Technology at Konza Technopolis, Ksh 2.8 billion for maintenance and rehabilitation of Last Mile County Connectivity Network, Ksh 5.2 billion for Konza Data Centre and Smart City Facilities.
Education Sector allocated Ksh 656.6 Billion: Ksh 358.2 billion to the Teachers Service Commission, Ksh 142.3 billion for Basic Education; Ksh 128.0 billion for Higher Education & Research; and Ksh 30.7 billion for Technical Vocational Education and Training, Ksh 9.1 billion Free Primary Education; Ksh 61.9 billion for Free Day Secondary Education; Ksh 30.7 billion for Junior Secondary School Capitation.
Manufacturing Sector allocated Ksh23.7 Billion: Out of this, Ksh 4.5 billion will support Establishment of County Integrated Agro-Industrial Parks; Ksh 1.9 billion for the Supporting Access to Finance & Enterprise Recovery (SAFER) Project; Ksh 1.1 billion for construction of Investors Sheds in Athi River; Ksh 1.9 billion for establishment of six (6) Flagship Export Processing Zones Hubs; Ksh 440.0 million for the Development of SEZ Textile Park in Naivasha; and Ksh 1.0 billion for Kenya Jobs Economic Transformation (KJET), Ksh 1.5 billion for excess milk mop-up; Ksh 500 million for modernization of KCC milk factories; and Ksh 250 million for construction of a milk factory in Narok.
Security: Ksh 377.5 billion allocated to support operations of the National Police Service, Defence, the National Intelligence Service and Prison Services.
Tourism, Sports, Culture, Recreation and Arts allocated Ksh23.7 Billion: Ksh 16.5 billion for the Sports, Arts and Social Development Fund; Ksh 4.9 billion for the Tourism Fund; and Ksh 2.2 billion for Tourism Promotion Fund.
Environmental, Water and Natural Resources: Ksh 10.7 billion for Forests Resources Conservation and Management; Ksh 1.7 billion for Forests Research and Development; Ksh 2.7 billion for Environment Management and Protection; Ksh 5.9 billion for the Kenya Financing Locally Led Climate Action Project; Ksh 1.6 billion for Meteorological Service; and Ksh 13.1 billion for wildlife security, conservation and management.
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