Quick Facts on Kenyan Budget 2019/2020, Losers and Gainers

Cabinet Secretary Henry Rotich tabled a 3.02 Trillion budget yesterday in parliament for the financial year 2019/2020.

Also read: Increased tax base to largely finance 2019/2020

Here are some quick facts on the 2019/20 budget

  1. The Sh.3.02T 2019/2020 budget is a Jubilee Government’s seventh in a row. It is also 10 billion higher than the previous  budget
  2. The government has merged the Micro, Small and Medium Enterprises into Biashara Kenya Fund.
  3. The government will also employ huge measures on cost-cutting by employing measures such as use of electronic cards for all public officers traveling out of the country
  4. Also, employment of public servants will be centered on majorly recruitment to key technical staff, security personnel, teachers and health workers as other means of cost management . The Public servants will also go into retirement from 60 years
  5. The CS said that Kenya’s economy had grown so significantly from 6,.3 % from 4.9% of last year.
  6. The budget deficit was on the scale of 5.6 per cent  of the GDP which is a decline from 6.8 per cent in this financial year and 7.4 per cent in the last financial year.

7. County Governments were given Sh371.6 billion, of which, Sh 310 billion is the equitable share and Sh 61.6 billion conditional transfers

8. Sh.450.9 billion was given to The Big Four Agenda (housing, manufacturing, Health, and security

9. Other key allocations included Universal Health Coverage -Sh 47.8 billion, housing –  Sh10.5 billion, Sh2.3 billion – Public Servants Housing Mortgage Scheme , Sh5.0 billion – the National Housing Development Fund

10.Ministry of Industrialization was allocated with Sh 1.1 billion for the development of textile and leather industrial park, Naivasha Industrial Park and Cotton Development subsidy.

11.Education sector got Sh 55.4 billion- Free Day Secondary Education Programme and Sh 12.4 billion for Free Primary Education Programme ; Sh 3.2 billion – recruitment of additional teachers.

Big losers in the budget allocation

Gamblers, consumers of alcoholic drinks and tobacco products are the biggest losers after the government proposed to increase taxes.Gambling activities were also on the receiving end after the Cabinet Secretary proposed to introduce excise duty on betting activities at the rate of ten per cent of the amount staked.

Those in the boda-boda and tuk-tuk transport service were also not spared after Rotich introduced new insurance proposals aimed at covering the riders, passengers and even pedestrians.

Gainers in the Budget Allocation

In the past financial years, the Education sector has always received the lion’s share of the budget, likewise Sh473.3 billion has been allocated to the sector; followed by Energy, Infrastructure and ICT which have been allocated a combined budget of Sh406.7 billion.

Kenyans are still wondering on the direction the economy of the country is headed to. With huge allocations given to government officials and parastatals, the budget seems to be for the few rich people at the expense of the poor who will have a share of taxation.

“In a budget of Ksh 3 Trillion, half of it goes to the people who are employed by the government(recurrent expenditure),salaries,mandazi and flowers. In a country of 50 million people,civil servants are not more than 1 million, we have to ask ourselves for how long will are 49 million are going to carry the burden of 1 million!” Moses Kuria exclaimed.

Inflation is expected to be the order of the day in the country as others pleaded that the government should looked into issues of wananchi especially on consumer goods that have risen even before the budget was read.

What’s your view on the proposed budget for 2019/2020?

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