The Kenyan government has unveiled a spending plan of Sh2.62 trillion for the financial year starting in July, with significant allocations for roads, infrastructure, energy, security, and education.
According to the budget estimates presented by National Treasury Cabinet Secretary Henry Rotich, key government projects such as the standard gauge railway, laptop programs for schools, and electricity distribution will receive substantial funding.
Infrastructure and Development ¶
The budget allocates Sh284.87 billion for infrastructure, transport, and logistics, including ongoing road constructions, the standard gauge railway, and modernization of ports. The new railway will receive Sh75 billion, while Sh9.7 billion is set aside for the Last Mile Connectivity project.
Additionally, Sh3 billion is allocated for buying transformers in constituencies, Sh1.53 billion for solar lanterns, and Sh1.3 billion for a connectivity subsidy to deepen electricity connections in homes and public places.
Education Sector ¶
The education sector will receive significant funding, with the laptop program allocated Sh13.4 billion out of Sh169.8 billion. This amount will also cover the recruitment of more teachers, upgrading of national schools, and funding for universities. An examination fee waiver has been allocated Sh4 billion.
Security and Defense ¶
Security is expected to take up Sh57.7 billion, with plans to lease more police cars, enhance security operations, and improve border security. Modernization of the police and military will cost Sh25.6 billion.
Budget Deficit and Revenue Projections ¶
The budget estimates show a deficit of Sh582.5 billion, which will be bridged through borrowing. The government plans to raise revenue projections to Sh1.5 trillion, with tax reforms and automation expected to improve revenue collection.
As stated by Mr. Rotich in the estimates,
"This performance will be underpinned by ongoing reforms in tax policy and revenue administration, through automation and inter-agency collaboration and connectivity."
The government will also review the income tax law to modernize it and align it with international practices.
Agriculture and Irrigation ¶
The budget allocates Sh7.3 billion for ongoing irrigation projects and agricultural transformation initiatives. This includes Sh5 billion for input subsidies, such as fertilizers and seeds, and Sh1.6 billion for title deeds and Sh1 billion for crop diversification for miraa farmers.
Economic Growth Projections ¶
The government expects the economy to grow at 5.9% in 2017, driven by agriculture and tourism recovery, as well as the completion of roads and rail projects.
The recovered account cited reporting by Nairobi News.
