This archive report was first published on 11 June 2020.
On June 11, 2020, the National Treasury unveiled a budget aimed at kickstarting economic recovery in the wake of the Covid-19 pandemic.
The budget, which focuses on economic recovery, is a delicate balance between social support, including health and capital development, and the 'Big Four' agenda projects.
Cabinet Secretary Ukur Yatani warned that recovery would be slow and painful, with the economy projected to grow at 2.5 per cent this year, down from the initial 5.4 per cent forecast.
The budget allocates Sh172 billion for road construction and expansion of the standard gauge railway from Nairobi to Naivasha, as well as cash for the stalled Lamu Port-South Sudan-Ethiopia Transport (Lapsset) corridor.
Education is the biggest beneficiary, with Sh497.7 billion allocated, including Sh59.4 billion for subsidised secondary education and Sh12.4 billion for free primary education.
However, the country's soaring debts remain a significant challenge, with the government projected to raise only Sh1.8 trillion of the total budget of Sh2.79 trillion, leaving a deficit of Sh840.6 billion to be plugged through borrowing.
Rightly, as Mr Yatani articulated, the country must deal with the debt crisis, and the Treasury has proposed an audit of capital projects being funded by borrowed funds to determine their viability.
