Kenya: Govt Proposes Additional Sh63.9 Billion Budget to Cater for Fuel, Food Interventions

Nairobi — The Government has proposed an additional Sh63.9 billion in new adjustments to the supplementary budget which is meant to cater for fuel price stabilization and the ongoing drought situation which poses a threat to the country’s food security.

This sums up to Sh203.7 billion the overall change from the original approved budget estimates, a 10.5 percent increase which is above the Constitutional requirement that total spending in a year should not be increased by more than 10 percent.

According to the document tabled to Parliament, the new funds will also be channeled towards security-related expenditure which is deemed necessary ahead of the August General Elections.

According to the supplementary budget, Sh1 billion was used to cater for fertilizer subsidy which was aimed at easing the prices which shot up as a result of the Russia-Ukraine war.

Another Sh37.8billion was used to cater to the fuel stabilization program which was introduced in the wake of rising fuel prices occasioned by the Geopolitical tensions brought about by the Russia Ukraine war.

The document further shows the government spent Sh260 million on Kibaki’s State burial.

Another Sh8billion was used to fund the completion of ongoing road construction while Sh1 billion was used for the Naivasha Inland Container depot station.

Revenues collected between July 2021 and March were reported at Sh1.52 trillion against a target of Sh1.51 trillion.

Total expenditure over the same period amounted to Sh2.07 trillion, against a target of Sh2.89 trillion with the underperformance blamed on low absorption of development cash.

Similarly, the finance committee has tabled its report on the Financial Bill 2022 which opposes various tax proposals on beer, spirits, maize flour, wheat, and many other basic commodities.