Today, 11th June, the Cabinet Secretary (CS) for National Treasury read the budget statement at the National Assembly from 3 pm.
This comes in the midst of Covid-19 pandemic outbreak which has crippled the economy. Therefore, a public budget during times like these are used to rejuvenate the struggling economy. Transport, tourism and hospitality sectors are among the hardest hit.
According to the CS Ukur Yatani, Kenya’s public debt remains sustainable. Public debt will now be guided by the recently approved Debt and borrowing policy.
The budget for financial year 2020/2021 will continue with the implementation of The Big Four Agenda i.e. food security, contribution of 15% of Gross Domestic Product (GDP) through manufacturing, provision of 500,000 units of housing, Universal Health Care coverage (UHC).
Healthcare
In terms of resource allocation, a total of Ksh. 5.3 billion will be spent on transforming infrastructure for the Universal Health Care (UHC) coverage.
In terms of mental healthcare provision, the National Treasury has approved Ksh. 1. 2 billion for Mathare Mental Referral Hospital in Nairobi. This is the only referral hospital for psychiatric cases. The hospital is located along Thika Road in Nairobi City.
Housing
Housing and urban development (one of the Big Four Agenda) has been allocated Ksh. 15.5 billion for the financial year 2020/2021.
Markets
Another Ksh. 1.1 billion was allocated for the construction of Gekomba, Githurai, Chaka and Dagoretti markets. We understand markets is a county function but the two levels of government are allowed to take over functions of the other level following mutual agreement.
Youth Empowerment
A total of Ksh. 715 million has been set aside for the Kenya Youth Empowerment and Opportunities project. This is a project implemented by the Government of Kenya in collaboration with World Bank Group. It commenced in 2016 and is expected to be completed in 2021. The main objective of the project is to increase income generating opportunities for Kenyan youth (18-29 years of age).
Food Security
On Food Security, the National Treasury allocated Ksh. Ksh. 52.8 billion to improve on food production and nutrition. Out of that amount Ksh. Ksh. 5.5 agricultural and rural inclusive project. Another Ksh. 10 billion has been allocated towards irrigation land reclamation while Ksh. 1.4 billion for small scale irrigation.
In order to promote security of land tenure, the National Treasury allocated Ksh. 1.6 billion to be spent on processing and registration of land title deeds. We are not sure whether these resources will also be spent on the implementation of Community Land Act – a law which was enacted in 2016 to provide for recognition, protection and registration of community land rights in Kenya. As you may be aware lands in Kenya are classified as public, private or community land.
Funds are required to implement the Community Land Act 2016 in hiring the community land registrar (to be designated by the Chief Land Registrar), (in case they have not been hired yet), put in place Community Land Management Committee and conduct adjudication and survey of community land.
Roads and bridges
A total of Ksh. 172 billion has been allocated towards construction of roads and bridges as well as their rehabilitation.
Likoni Ferries
A total of Ksh. 328 million has been allocated for insurance of ferries at Likoni channel. In the past there were complaints that the ferries were old and uninsured.
Security
In order to attain a safe and secure environment, the National Treasury has allocated resources meant to strengthen all the security agencies in Kenya. A total of Ksh. 167 billion has been set aside for defense and national intelligence and part of the money will be used for police modernization (whatever that means).
Police officer will benefit from health insurance at a cost of Ksh. 2.2 billion.
Education
The Education Sector was allocated Ksh. 497 billion for various sub-sectors. Out of this pot of money, a total of Ksh. 12.4 billion has been allocated towards Free Primary Education (FPE). An additional 5,000 new teachers will be hired in 2020/2021 using an allocation of Ksh. 2 billion. This creates hope for many qualified but unemployed teachers out there.
As usual in 2020/2021, class 8 and form four candidates will not pay examination fees. A total of Ksh. 4 billion has been set aside for this purpose. #
The Higher Education Loans Board (HELB) has been allocated Ksh. 15.8 billion for FY 2020/2021. Learn more about HELB through watching the video below:
Social security
A total of Ksh. 1.1 billion has been allocated to benefit People with Severe Disabilities (PwSD). Another Ksh. 400 million has been allocated towards development expenditure for PwDs.
Poverty Alleviation
In order to alleviate poverty, the Government of Kenya through the National Treasury has allocated Ksh. 6.8 billion for equalization fund for marginalized areas. This is an affirmative action fund meant to cross the gap between the developed and historically marginalized areas in Kenya.
National Youth Service (NYS)
The NYS, has been allocated Ksh. 10.2 billion to deliver on its mandate of helping Kenyan youth to discover and develop their full potential. The organization was founded in 1964 by Dr. Geoffrey Griffins (late) and the late General Waruhiu Itote aka General China. In the past National Youth Service has been at the center of corruption scandals some of which are still pending in the courts and hence amount to sub judice is discussed here.
Job creation
A total of Ksh. 600 million to be used in procurement of locally assembled motor vehicles to be used by ministries, departments and agencies (MDAs).
Farming
The Cabinet Secretary for Treasury has made a decision to have Value Added Tax (VAT) exemptions on maize and corn seeds. This will reduce the cost of farm inputs and hence see increased production of maize (stable food for many Kenyans).
Public private partnerships
CS Ukur Yatani signaled that he plans to amend the public roads toll Act to enable the people who have engaged in construction of roads under Public Private Partnership arrangement to collect the toll.
Finally, the Cabinet Secretary, hopes that Kenya budget for financial year 2020/2021 will lead to job creation and improvement of living standards for Kenyans.
In his concluding remarks, the CS for National Treasury thanked all Kenyans for their input on the national budget estimates fy 2020/2021. Now the unanswered question is: how many of the proposals from the ordinary Kenyans were adopted and actually funded? This is a question for another day. This matter requires careful comparison of the approved budget estimates against the proposals which were submitted by the Wanjikus.
Keep tuned!
