Treasury CS Yatani unveils ambitious Ksh 2.79 trillion budget

The Education Sector was the biggest beneficiary of the 2020/2021 Ksh 2.79 Trillion budget after receiving Ksh 497.7 billion for programmes in the sector.

The allocation accounts for 26.7 percent of the budget with Ksh 59.4 billion set to cater for free day secondary education while Ksh  12.4  billion will cater for free primary education programme.

A further Ksh 2.0 billion has been set aside for the recruitment of 5,000 teachers across the Country.

Treasury CS Ukur Yatani said the financial year 2020/21 budget responds to the current challenges facing Kenyans, businesses and the economy at large in the wake of COVID-19 pandemic.

“It is in this context that we have chosen the theme for this budget as stimulating the Economy to Safeguard Livelihoods, Jobs, Businesses and Industrial Recovery.” He said.

County Government

In the FY 2020/21, County Governments have been allocated Ksh 369.9 billion which comprises of Ksh 316.5 billion equitable share.

The CS told the House that in order to facilitate performance of transferred functions from Nairobi County, the Nairobi Metropolitan Services has been allocated Ksh 26.4 billion in the FY 2020/21, which includes Ksh 15.95 billion from the County’s equitable revenue share for the FY 2020/21.

To support creation of employment, manufacturing among others, the Treasury has set aside Ksh 128.3 billion for the “Big Four” Agenda drivers and enablers.

Healthcare

Yatani said the Government continues to prioritize Healthcare by scaling up universal health coverage to all the Counties saying to improve health outcomes, he has proposed an allocation of Ksh 111.7 billion to the health sector in this budget.

“Out of this, Ksh 50.3 billion is for activities and programmes for the attainment of Universal Health Coverage. The budget for the Health Sector includes Ksh 19.2 billion to address and lower cases of HIV, Malaria and tuberculosis in the country.” He said.

Other allocations to improve health service delivery include Ksh 15.0 billion for Kenyatta National Hospital, Ksh 10.0 billion for Moi Teaching and Referral Hospital among others.

Yatani said the Government remains committed to support oversight and the legislation and he has proposed an allocation of Ksh 37.3 billion to Parliament while Judiciary will receive Ksh 18.1 billion to enhance access to justice.

He further said he has enhanced allocations to institutions mandated to fight corruption saying he has set aside Ksh 3.1 billion for the Ethics and Anti-Corruption Commission and a similar amount for the Office of the Director of Public Prosecutions.

The Government will also continue to scale-up the construction of a robust network of high-quality roads, railways, sea and airports to enable Kenyans enjoy the benefits of expanded infrastructure assets and improve our competitiveness. Towards this end, Treasury CS said he has proposed an allocation of Ksh 172.4 billion.

Security

And to support security operations in the Country, the CS has proposed Ksh 167.9 billion to security agencies among them Defence and the National Intelligence Service for leasing of police motor vehicles among other services.

Yatani said he has allocated Ksh 52.8 billion for Food and Nutrition Security out which Ksh 10.6 billion will go towards the Kenya Climate Smart Agricultural Project.

And to support generation of adequate and affordable energy the CS has allocated Ksh 63.3 billion which excludes the allocations for the “Big Four” Agenda. Out of this amount, Ksh 50.8 billion will cater for transmission and distribution of power.

A further Ksh 82.7 billion has been allocated to support environment and water conservation. Ksh 42.6 billion of the funds will be geared towards the development of water and sewerage infrastructure.

The CS also set aside Ksh 15.5 billion to the housing, urban development and public works sector. Out of this, Ksh 6.9 billion will cater for the Affordable Housing Programme.

And to promote local industries, he has proposed an allocation of Ksh 18.3 billion for this cluster.

CS Yatani said Ksh 18.1 billion has been set aside for SGR Phase II which covers Nairobi to Naivasha, Ksh 6.0 billion for the LAPSSET Project, Ksh 5.0 billion for the Mombasa Port Development Project and Ksh 328 million for insurance of ferries for the Likoni channel.

A further Ksh 17.6 billion for cash transfers to the elderly persons, Ksh 7.9 billion for orphans and vulnerable children and Ksh 1.1 billion for cash transfers to persons with severe disabilities has also been allocated.

CDF

The National Government Constituency Development Fund has been allocated Ksh 41.7 billion while Ksh 2.1 billion has been set aside for National Government Affirmative Action Fund.

If the Budget is approved, NYS will receive Ksh 10.2 billion while the Kenya Youth Empowerment Project will also receive Ksh 2.1 billion.

According to Yatani, allocation for Konza Technopolis City which positions Kenya as a world class ICT hub has been enhanced with Ksh 6.3 billion set aside for the Horizontal Infrastructure Phase I (EPCF) for Konza, Ksh 400 million for the on-going construction of Konza Technopolis Complex Phase 1B and Ksh 5.1 billion for Konza Data Center & Smart City Facilities project.

The CS said the budget was prepared against a background of a contracting global economy occasioned by the outbreak of the COVID-19 Pandemic which has disrupted most aspects of human life.

And slightly after 4:30, over 1 hr 30 minutes after he rose to read the budget statement, CS Yatani beseeched the house to endorse the budget saying he believes that the measures spelt out in the budget will create more jobs and transform the lives of Kenyans.