Kenya’s new administration, led by President Dr William Ruto, is presenting the country’s budget for the fiscal year 2023/24. The budget aims to address key developmental priorities while grappling with economic challenges and external shocks. Here are some of the key highlights:
In this article
Budget Overview:
- The Total budget for 2023/24 is estimated at KSh 3.68 trillion, marking an increase from KSh 3.3 trillion in the previous year.
- The development budget has been set at KSh 718.9 billion, reflecting the government’s focus on infrastructure and other growth-oriented projects.
- The national government is allocated KSh 2.3 trillion, highlighting its role in driving the country’s overall economic agenda.
- County governments receive an allocation of KSh 385.4 billion to support local development initiatives.
- Budget Allocation to settle Public debt stands at KSh 1.6 trillion.
Sector Allocations:
- The education sector receives the largest allocation, with KSh 630 billion dedicated to improving the country’s education system.
- Teachers Service Commission (TSC) is allocated KSh 323.8 billion to support teacher salaries and related expenses.
- The health sector is allocated KSh 141 billion to enhance healthcare services across the country.
- Judiciary to get KSh 22 billion to support the administration of justice.
- KSh 3 billion is dedicated to Export Processing Zones (EPZs) to promote industrial growth and export-oriented industries.
Key Concerns and Priorities:
- Road construction projects are put on hold until KSh 900 billion in pending bills owed to contractors, is cleared.
- The disbursement of capitation funds to public primary schools to enable funding of junior secondary schools education has been delayed, affecting the education sector.
- The Inter-Governmental Council, led by Deputy President Rigathi Gachagwa, aims to fast-track the release of funds to county governments.
- New funding for university education is introduced, raising questions about its source of funding.
- Addressing security concerns, the government plans to hire and equip more police officers, particularly in areas affected by bandit attacks such as Lamu, Wajir, and Samburu.
Legislative Process and Economic Challenges:
- Professor Njuguna Ndung’u presents his first budget as part of President Ruto’s administration, with the Appropriation Bill expected to be passed into law by June 30th, to enable execution of the 2023/24 Budget
- This 2023/24 budget is formulated in the context of numerous external shocks, including the Russia-Ukraine conflict and the lingering effects of the COVID-19 pandemic.
- Kenya also faces significant economic challenges such as a rising cost of living, a high debt load nearing the KSh 10 trillion limit, a weakened shilling exchange rate against the US dollar, as well as increased food and fuel prices.
READ; Moody’s Places Kenya’s Government Ratings on Review for Downgrade
