Summary
- Treasury Cabinet Secretary Ukur Yatani on Thursday read the Sh3.31 trillion budget for the financial year starting July, two months earlier than traditional time.
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Economy
Thursday April 07 2022
Treasury Cabinet Secretary Ukur Yatani on Thursday read the Sh3.31 trillion budget for the financial year starting July, two months earlier than traditional time, paving the way for lawmakers to approve expenditure before their term ends ahead of the August 9 general elections.
The Treasury secretary informed the lawmakers that Kenya had received the green light from the East Africa Community (EAC) partner states to read the budget ahead of the August elections.
Mr Yatani said the Jubilee administration has refocused spending to sustain economic recovery from the Covid-19 pandemic and support social welfare programs meant to benefit low-income and poor Kenyans.
Mr Yatani said in his speech on Thursday that Kenya’s economy will grow by 6 percent this year from an estimated 7.6 percent in 2021.
HIGHLIGHTS
Local manufacturing
“In order to promote local manufacturing of pharmaceutical products, I propose to introduce VAT exemption on inputs used in the manufacture of medical ventilators and breathing appliances.”
Fiscal deficit
“We plan to reduce the level of fiscal deficit from 8.7 percent of GDP in the current budget to 7.5 percent of GDP in the financial year 2021/22 and further to a 3.6 percent of GDP in the financial year 2024/25.”
Kenya Airways
“Kenya Airways plays an important role in the economic development of this country. The government will allocate funds for its restructuring costs.”
Government debt burden
“I’m confident we are presenting a budget that is reflective of the current realities.”
Government bonds trading
“We shall establish an electronic over the counter secondary market platform for government securities. This platform will help in deepening our domestic debt market. We expect operations of the over the counter to be in place by June 2022.”
Economic growth
“In 2022, the economy is projected to stabilize at 6.0 percent supported by the prevailing stable macroeconomic environment, favorable weather conditions to support agricultural output and drive food processing (manufacturing) and the continued recovery in industry and services.”
“Covid-19 vaccinations, which targets 26 million people above 18 years by the end of the year, is expected to allow people greater interactions in business activities.”
Economic Stimulus Program
“Building on the gains made during the first and second phase of the Econimc Stimulus Program, the government is implementing the third phase which is designed to accelerate the pace of economic growth.”
“In the third phase, the government is implementing 13 strategic interventions including the third phase of Kazi Mtaani program to create employment for over 200,000 youths across the country, construction of additional 50 new level 3 hospitals in non-covered and densely populated areas across the country to enhance medical coverage support the livelihoods of farmers in the sugar belt, provision of fertilizer subsidy to small scale tea farmers and completion of the ongoing interventions in the coffee sub-sector. “
Economic risks
“The economic outlook may be affected by emerging domestic and external risks. On the domestic front, re-emergence of COVID-19 variants and possible adverse weather conditions could reverse the projected economic recovery.”
“On the external front, the ongoing conflict in Eastern Europe has created uncertainties that will affect the global economic outlook through disruption of supply chains, rising global oil prices and increased inflationary pressures.”
Education
The government has increased allocation to the education sector to Sh544.4 billion.
Healthcare
The government will allocate a total of Sh146.8 billion for healthcare.
National Security
Treasury has allocated Sh317.8billion for internal security, national defense the National Intelligence Service (NIS).
Equity, poverty reduction, women and youth empowerment
Digitalising of economy
Additional reporting by Lynet Igadwah and Sam Kiplagat
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Economy Inside Uhuru’s last Sh3.3trn budget Thursday April 07 2022 By ADONIJAH NDEGEMore by this Author Summary Treasury Cabinet Secretary Ukur Yatani on Thursday read the Sh3.31 trillion budget for the financial year starting July, two months earlier than traditional time. Treasury Cabinet Secretary Ukur Yatani on Thursday read the Sh3.31 trillion budget for the…
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