The National Assembly was on June 13, 2024, briefed on the Budget Policy Highlights and Revenue Raising Measures for the Financial Year 2024/2025, by the Cabinet Secretary, National Treasury and Economic Planning, Prof. Njuguna Ndung’u.
This year’s highlights were themed, ‘Sustaining BETA, Fiscal Consolidation and Investing in Climate Change Mitigation and Adaptation for Improved Livelihoods’, and focused on allocations to key priority areas that will enhance the Government’s realization of the Bottom-up Economic Transformation Agenda (BETA).
In his opening remarks, the CS noted that Kenya’s fiscal policy is geared towards the BETA, through continued implementation of a fiscal consolidation plan designed towards slowing down growth of public debt without compromising economic growth.
“The fiscal consolidation efforts will continue to target domestic revenue mobilization and rationalization of spending through improved public financial management, while reallocating resources to priority areas,” stated Prof. Ndung’u.
Further, the CS assured Kenyans that the Treasury had listened to, and considered their concerns thereby spelling out measures to address them through the budget, as captured through the numerous public participation exercises conducted in the run-up today’s presentation of Budget highlights.
Revenue Projection
Turning to revenue projections for the FY 2024/2025, Prof. Ndung’u projected an estimate of Kshs. 3.343 trillion, including appropriation-in-aid, which is equivalent to 18.5 percent of the GDP.
The total expenditure on the other hand, was projected at Ksh 3.992 trillion or 22.1% of GDP.
“Of this, recurrent expenditure is projected to be Kshs. 2.840 trillion, while development expenditure is expected to stand at Kshs. 707.4 billion. On the other hand, the total allocation to County Governments is projected to be Kshs. 444.5 billion of which the equitable share is Ksh 400.1 billion,” stated CS Ndung’u.
Key allocations on the 2024/2025 budget
Some of the key allocations proposed for the FY 2024/25 include Kshs. 54.6 billion to the agricultural sector, an additional allocation of Kshs. 5 billion to the financial inclusion ‘Hustlers’ Fund to scale up access to credit for households as well as MSMEs.
To further the Government’s commitment to turn the housing challenge into an economic opportunity to create quality jobs for the youth, the CS proposed an allocation of Kshs. 92.1 billion for the Housing, Urban Development and Public Works.
On enabling the government to realise the constitutional right to health by promoting access to quality and affordable healthcare through the Universal Health Coverage Programme, the Treasury proposed an allocation of Kshs. 127 billion to the health sector to support various activities and programmes.
Further, in a bid to support growth in the digital superhighway and creative economy, an allocation of Kshs. 16.3 billion was proposed to fund initiatives in the Information, Communication and Technology sector.
The presentation of the budget highlights now paves the way for the consideration of the Appropriations Bill.
The House is expected to debate these highlights when it convenes next week.
