Treasury Cabinet Secretary Njuguna Ndungu on Thursday, June 13, 2024, presented the Financial Year 2024-2025 Budget report before the National Assembly.
Ndungu expounded on the government’s ambitious Ksh4 trillion budget, detailing economic growth and sector contributions, while also breaking down allocations.
According to the report, Kenya’s economy grew at 5.6% in 2023 from 5.5% in 2022. To that growth, the manufacturing sector contributed a significant 7.6% in the last one year.
Meanwhile, the Kenya strengthening of the Kenya shilling by 14% in the period between January 2024 and June 2024 brought a breath of fresh air to the country’s economy.
According to the budget report, inflation declined from 8% in May 2023 to 5.1% in May 2024, now anchored within the 5% target, due to lower food prices driven by favourable rainfall and the government’s fertilizer subsidy programme, resulting in maize production of 67 million bags in 2023/2024.
Key Allocations
1. Education:
Total Allocation: Ksh659.5 billion (27.5% of the budget)
– HELB: Ksh36.31 billion
– Ongoing university projects: Ksh4.3 billion
– Conversion of JSS interns and hiring of new ones: Ksh17.9 billion
-University Funding Model: Ksh25.5 billion
-School Feeding Programme: Ksh3 billion
– TVETs capitation and projects: Ksh30.68 billion
– Capitation for free Primary Education: Ksh9.1 billion
– Capitation for free Day Secondary Education: Ksh61.8 billion
-Capitation for JSS: Ksh30.6 billion
2. Health:
* Rolling out the UHC under the BETA plan – Ksh13.8 billion.
* Primary Health Care Fund: Ksh8.1 billion
* Emergency, Chronic, and Critical Illness: Ksh2.0 billion
– Provision of intern doctors: Ksh3.7 billion
3. Agriculture:
* Total Allocation: Ksh48.23 billion
* Cherry Coffee Revolving Fund: Ksh2 billion
– Fertilizer Subsidy: Ksh10 billion
– Sugar reforms: Ksh1.7 billion
– New KCC: Ksh2.25 billion
4. Livestock:
* Total Allocation: Ksh12.32 billion
– Livestock restocking: Ksh1 billion
– Milk Coolers: Ksh500 million
– Milk Factory in Narok: Ksh250 million
– Mopping up skins and hides: Ksh 200 million
5. Irrigation:
* Total Allocation: Ksh23.4 billion
* Galana Kulalu irrigation project: Ksh1 billion
6. Water:
* Total Allocation: Ksh52.4 billion
7. Energy:
* Total Allocation: Ksh69.6 billion
* Last mile connectivity: Ksh14.5 billion
8. Roads:
* Total Allocation: Ksh199.4 billion
– Recurrent expenditure: Ksh72.2 billion
– Development expenditure: Ksh127.2 billion
9. Trade and Industry:
* County Integrated Agro-Industrial Parks: Ksh4.6 billion
* Flagship Export Processing Zone Hubs: Ksh1.86 billion
10. NGCDF:
* Total Allocation: Ksh62.96 billion
* NGAAF: Ksh3.98 billion
11. Equalization Fund: Ksh8 billion.
12. Equitable Share to Counties: Ksh400.1 billion, over 25% of the last audited revenue, a record high and the first time such levels have been achieved, demonstrating President William Ruto’s strong support for devolution.
