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Gov’t Floats Ksh2.7 Trillion Budget, Ksh1.7 Trillion Slotted For Recurrent Expenditure

Treasury CS Henry Rotich. [PHOTO/ COURTESY]

The government will spend Ksh1.7 trillion in the 2019/2020 financial year on recurrent expenditure, out of the Ksh2.7 trillion budget floated. The budget has increased from the current one by Ksh252 billion.

In the budget, the government will have a deficit of Ksh607.8 billion from Ksh559 billion this year, which calls for more borrowing.

The government will however spend almost an equal amount to pay debts, Ksh551 billion. This is Ksh61 billion more than the Ksh490 billion spent this year.

The amount spent on salaries and wages will rise from Ksh425 billion to Ksh470 billion.

Projects under the Big 4 Agenda will consume Ksh450.9 billion. Of this, Ksh76.7 billion will go towards Jubilee’s driver projects while the remaining Ksh374.1 billion will be pumped into enablers of the Big 4.

“The targeted expenditures will prioritise employment creation, youth empowerment, supporting manufacturing activities, enhancing health coverage, improving food security and enhancing living conditions through affordable housing,” the budget document reads in part.

Ksh25.1 billion will go to dams, while Ksh2 billion will go to the value chain support and Ksh3 billion for the cherry coffee revolving fund.

Ksh7.9 billion will go towards irrigation, Ksh300 million towards cane farmers and Ksh1 billion for the miraa revitalisation project. In total, Ksh15.6 billion will be used to enhance food and nutrition security.

In the healthcare sector, Ksh4.1 billion will go toward free maternity, Ksh6.2 billion to healthcare equipment and Ksh35.8 billion to universal health coverage.

Ksh10.5 billion will go towards the affordable housing programme while the manufacturing sector will receive Ksh3.8 billion.

Read: KQ Blames High Cost Of Fuel For Its Ksh7.59 Billion Loss

Budget for the counties has gone down from Ksh376.5 billion to Ksh371 billion. This year’s budget for the counties was further reviewed downwards to Ksh367.4 billion through the supplementary budget.

The Kenya Revenue Authority is expected to collect Ksh1.8 trillion as ordinary revenues. The total revenue collections, including Appropriation in Aid (AIA), will be Ksh2.1 trillion.

The Agriculture and Food security sector will receive Ksh72.3 billion in total, Transport that includes the SGR Phase II, Mombasa Port and Lapsset (Ksh74 billion), roads (Ksh180.9 billion), energy (Ksh68.9 billion) and ICT (Ksh17.2 billion). The SGR between Nairobi and Naivasha will receive another Ksh55.8.

The National Security will get Ksh190.3 billion, educational sector Ksh202.5 billion, Social Protection and Affirmative Action Ksh11.6 billion, Women and Youth Empowerment Ksh1.3 billion while the Sports Culture, Recreation and Tourism will receive Ksh17 billion.

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Written by Francis Muli

Follow me on Twitter @francismuli_ Email:


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