President William Ruto has signed into law the Supplementary Appropriation (No.2) Bill, 2024.
State House and the office of the Deputy President are the most impacted by the approval of the Bill.
Passed last week, the Bill aims to revise budget allocations for the three branches of government to address a Sh344 billion revenue shortfall following the rejection of the Finance Bill, 2024.
Both offices will see a reduction of Sh6 billion, with the Treasury facing a substantial cut of Sh7 billion.
According to the Bill, various development projects in medical services will be suspended after losing Sh6.9 billion, while road and transport sector projects will be affected by a Sh17.3 billion cut.
The total reductions for the national government amount to Sh145 billion, consisting of Sh40 billion for recurrent expenditure and Sh105 billion for development. Of this, the Executive faces reductions totaling Sh139.81 billion across various ministries.
The Bill also includes a Sh3.7 billion reduction for Parliament and a Sh2.1 billion reduction for the Judiciary.
In passing the Bill, MPs balanced reducing recurrent expenditure while safeguarding essential expenditures in sectors like agriculture, health, and education.
For agriculture, Sh20 billion is reserved to support farmers and boost production and productivity, with Sh7.5 billion allocated for a fertilizer subsidy, Sh3 billion for the Coffee Cherry Fund, Sh2 billion to waive coffee farmers’ debts, Sh2 billion for milk coolers, Sh1.5 billion for milk price stabilization, and Sh0.7 billion to support sugar farmers.
In the health sector, Sh16.2 billion is allocated to support reforms and promote universal health coverage (UHC). Of this, Sh4.5 billion goes towards community health volunteers’ allowances and equipment, and Sh3 billion supports the medical internship program. Primary healthcare funds and contractors will each receive Sh4 billion.
The education sector receives Sh120.7 billion to support reforms. This includes Sh18.7 billion for confirming Junior Secondary School interns to permanent positions, Sh30.7 billion for JSS student capitation, Sh17 billion for university scholarships through the University Funding Board, Sh31.3 billion for scholarships and loans via the Higher Education Loans Board, and Sh23 billion for the Differentiated Unit Cost funding model in universities.
Additionally, the Bill allocates Sh3.5 billion to enhance the remuneration of officers in various security organs, in line with the recommendations of the David Maraga-led taskforce, to promote the dignity and living standards of security sector officers.
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