This archive report was first published on 11 June 2020.
As the Treasury Cabinet Secretary, Ukur Yattani, prepares to unveil the 2020/2021 budget on Thursday, June 11, 2020, Kenyans are eagerly awaiting a budget that will alleviate the economic burden caused by the Covid-19 pandemic, severe floods, and locusts' invasion.
According to residents in Nakuru, the government is expected to propose a budget that will reduce the cost of living, with some even petitioning the Treasury to reduce taxes and regulate prices of essential commodities.
Chairman of the Nakuru Residents Association, Wycliffe Aguda, has expressed concerns over the proposed increase in residential income tax rate from 10% to 15% in the budget estimates for 2020/2021, stating that it will put pressure on landlords who will be forced to pass on the tax burden to tenants through increased rents.
The Treasury's ambitious 3.2 trillion budget, which includes redemption of 441 billion shillings for maturing bonds, aims to cushion Kenyans from the economic effects of the pandemic.
CS Yattani will be looking to collect revenue totaling 1.88 trillion shillings from the Consolidated Fund to meet the expenditure during the year ending June 30, 2021, of which 1.62 trillion shillings will be ordinary revenue.
This is a dip compared to the approved 2020 Budget Policy Statement where total revenue was projected at 2.1 trillion shillings with ordinary revenue estimated at 1.85 trillion shillings.
