The last budget under the Uhuru government has been read today. The CS Treasury has presented a budget of 3.3 trillion a 4.8% increase from the last budget of 2.9 trillion. According to the CS Treasury, the economy grew by 7.6% in 2021. The big four agenda according to the CS was slowed down by Covid-19. The Big 4 Agenda has been allocated 146 billion. The Covid 19 expenditure has also been allocated 7 billion. Some members of parliament however felt that the 7billion allocated to Covid 19 can be used in other more needy areas.
Education, Energy, and infrastructure are the highest beneficiaries with education being allocated 544 billion, with construction and maintenance of roads getting 212 billion. In education, Ksh 294.7 billion has been allocated to the Teachers Service Commission, Ksh 91.2 billion for University Education, Ksh 15.8 billion to the Higher Education Loans Board, and Ksh 6.8 billion for Kenya Secondary Education Quality Improvement Projects and Ksh 5.2billion capitation for TVET students. Further, Ksh 527 million has been set aside for Technical, Vocational Education Training, and Entrepreneurship, Ksh 971.0 million for the promotion of Youth Employment and Vocational Training, and Ksh 323.0 million for the National Research Fund.
The farmers have not been forgotten and will get 2,7 billion to cushion them during planting. The police, prisons, defense, and intelligence have been allocated 317 billion. The judicially and EACC will get18.9 billion and 3.6billion respectively.
The motorcycle sector is not as lucky for the CS has proposed that they henceforth take insurance for passengers. The manufacturers of pharmaceutical products will be exempted from VAT. However, advertising for betting and alcohol will attract a 15% excise duty. All the agents and county governments are expected to pay all the pending bills by 30th June. Kenya RevenueAuthority will be renamed Kenya Revenue Service.
On not following the laid down procedures, Cs Ukur said that they had consulted widely and followed all the processes. According to Kanini Kega, the chairman of the budget, the role of parliament has not been usurped. To him the budget is balanced and doable According to him, it is a mwananchi budget with no surprises. However, some analysts think it is not a mwananchi budget since it lacked tax exemption for basic products.
What were your expectations of this budget? Leave a comment.
Dr. Mary Mugo
Strategy, Governance, and Management Consultant