This archive report was first published on 11 June 2020.
Kenya Budget 2020/21: Winners and Losers ¶
On June 11, 2020, Treasury Cabinet Secretary Ukur Yatani presented the Kenya Budget 2020/21 to parliament, marking his first such appearance. The budget speech was made after the presentation of the Finance Bill 2020/21, a document that has previously been tabled after the budget is read.
The Finance Bill will be assented by the President on June 30, 2020, as per provisions of the Public Finance Management (PFM) Act.
Allocations to Various Sectors ¶
The Kenya Budget 2020/21 allocated KSh 2.79 Trillion to various sectors, with the Education sector receiving KSh 497.7 Billion (26.7% of the National Budget). This includes KSh 59.4 Billion for free secondary education and KSh 12.4 Billion for free primary school education.
Other notable allocations include:
- Transport sector: KSh 172 Billion for construction and rehabilitation of road networks, KSh 18.1 Billion for the Standard Gauge Railway (SGR) project, and KSh 5 Billion for the Mombasa Port.
- Energy sector: KSh 63.3 Billion, with KSh 50.8 Billion for transmission and distribution of electricity, KSh 6.8 Billion for connecting electricity to public institutions, and KSh 6.8 Billion for exploration and generation of geothermal power.
- Security: KSh 167.9 Billion for procuring medical insurance for police and prison staff, setting up of forensic laboratories, and leasing of vehicles for the police.
- Agriculture: KSh 52.8 Billion for ensuring food security, including setting up irrigation projects and construction of dams.
- Health sector: KSh 111.7 Billion, with KSh 50.3 Billion for enhancing Universal Health Coverage, KSh 19.2 Billion for dealing with Malaria, HIV, and Tuberculosis, and KSh 6.2 Billion for providing specialized equipment to public hospitals.
Reactions from Tax Experts and Consumers ¶
Patrick Ngotho Chege, a tax expert at Deloitte Kenya, expressed disappointment that the budget did not address the high cost of living by lowering costs of production and providing a better stimulus package.
Stephen Mutoro, Secretary-General of the Consumers Federation of Kenya (Cofek), also criticized the budget for not focusing on recovering lost jobs and addressing corruption.
