Treasury CS Ukur Yatani unveils Budget 2020/21

Business News
CS Yatani’s first Budget has come under the spotlight on how he will balance the bigger budget against shrinking revenues

Kenya’s 2020/21 budget will this afternoon be presented by Treasury Cabinet Secretary Ukur Yatani in Parliament.

CS Yatani’s first Budget has come under the spotlight on how he will balance the bigger budget against shrinking revenues as businesses shut down, workers lose jobs or face pay cuts and exports decline on supply chain interruptions.
Here’s a chronology of the events:
14.25: Treasury CS Ukur Yatani emerges from Treasury building for a photo session carrying the budget briefcase.

14:33 The CS made his way to Parliament buildings riding in Passat car.

14.41 He arrived at Parliament buildings and proceeded for another photo session after hands were sanitized and temperature checked.
Orderlies sanitise furniture minutes before Finance CS starts reading the budget.
Highlights
CS Yatani takes to the floor of the House, says:

• Since March 2020, banks have restructured loans in excess of Sh360 billion; including Sh190 billion of personal loans.
• Sub-Saharan Africa economies to contract by 1.6 per cent in 2020 and rebound in 2021 by 4.1 per cent.
• To support the recovery of SMEs the State shall gazette the list of goods for local procurement to support the Buy Kenya Build Kenya Initiative.
• CS Yatani sets aside Sh5 billion for rehabilitation of access roads and bridges across the country.
• Sh10 billion set aside for the Kazi kwa Vijana programme.
• Sh300 million set aside to recruit 1,000 ICT interns to support digital learning in schools.
• Health Care: Sh1.2 billion set aside for the recruitment of health workers for a period of one year.
• Sh500 million to go to the supply of beds and beddings to hospitals.
• Agriculture: Sh3 billion set aside to subsidise farm inputs and Sh1.5 billion for flower and horticulture farmers to access international markets.
• Arrears: Sh1.3 billion set aside for clearing pending bills in Yatani’s Sh2.7 trillion budget that pegs economic growth at 5.5 per cent.
• CS Yatani orders Principal Secretaries and accounting officers to clear all pending bills. State Corporations accumulating bills will be experience delays in getting future disbursements from Treasury.
• To support enterprises owned by women and people living with disability the Government has directed prompt payment for their contracts.
• To cushion businesses and premises affected by COVID-19, CS Yatani says he has constituted a team in Treasury to review the situation being faced by state-owned enterprises and revert within 90 days.
• Tourism: To support the sector, the government has temporarily lifted the ban on holding meetings in private hotels.
• Deficit: CS Yatani says Fiscal deficit to decline in 2020/21 Financial Year to Sh840.6 billion from Sh842.7 billion in the previous Financial Year.
• Debt: Treasury says the public debt is sustainable and government will opt for concessional borrowing.
• Public projects to be funded through Public Private partnerships.