KENYAN GOVERNMENT REDUCES BUDGET, INCREASES COUNTY ALLOCATION

The Kenyan government has reduced this financial year’s overall budget from Kshs.132.46 billion from Kshs.3.981 trillion to Kshs.3.848 trillion. The reduction is 3.3 per cent.

The announcement was made when President William Ruto signed into law the Supplementary Appropriation Bill 2024 and the Division of Revenue Bill 2024 at State House, Nairobi, on Monday June 10,2024.

The Supplementary Appropriation Act 2024 reduces Kshs.32.6 billion from various budget allocations. With the rationalization of expenditures, the law authorizes the spending of KShs.102 billion from the Consolidated Fund for the year ending June 30, 2024.

The education budget has been enhanced, with university education receiving Kshs.4.468 billion and secondary education Kshs1.112 billion.

Development spending has also been redirected to priority areas and reduced by Kshs.75.29 billion, while Kshs.51.12 billion has been allocated for emerging pressing needs.

The law also regularizes KShs.23.67 billion expenditure under Article 223 of the Constitution that allows financing of emergencies and later approval by Parliament.

Furthermore, KShs.11.4 billion has been set aside for the Kenya Revenue Authority to enhance revenue collection efforts (Kshs.4 billion) and pay pending bills worth Kshs.7.4 billion.

The Division of Revenue Act 2024 on the other hand has increased county allocation by Kshs.14.69 billion from Kshs385.4 billion this financial year to Kshs.400.1 billion in the year beginning July 1.

The law also allocates Kshs.2.5 trillion to the National Government. It also implements Article 204 of the Constitution on the Equalization Fund, providing Kshs7.8 billion which is equivalent to 0.5 per cent of the last audited revenue accounts.