In Summary
  • Treasury seeks to reduce noncore areas of spending and direct resources to the health sector.
  • The proposed cuts have not spared the other two arms of government, with Parliament set to lose Sh4.892 billion and Judiciary Sh3 billion.

The Executive is on a collision course with Parliament after a House committee recommended the rejection of the National Treasury’s Sh80.1 billion supplementary budget on grounds that it’s faulty and undermines MPs’ role in budget-making.

The rejection threatens to scuttle President Uhuru Kenyatta’s Big Four agenda that is considered crucial to cementing his legacy.

The MPs accuse the Treasury of ignoring the Constitution, the Public Finance Management Act, 2012, and resolutions of the National Assembly before coming up with the supplementary budget.

If the MPs make good their threat, it will be the first time in Kenya's history for Parliament to reject the Executive budget.

Treasury is pushing to reduce the noncore areas of spending and direct resources to the health sector.

This has raised the Health ministry budget by Sh28.2 billion, bringing the total allocation to Sh115.6 billion that includes Sh62.9 billion for recurrent and Sh52.7 billion for development expenditure.

INFRASTRUCTURE

The Universal Healthcare project has been granted Sh18.03 billion, Sh2.17 billion has been allocated to reduce morbidity and mortality due to preventable causes, while Sh1.89 billion has been set aside to strengthen health policy, standards and regulations.

The government has also set aside Sh2.82 billion to improve standards of living of communities in the arid and semi-arid lands (Asals) and Sh2.24 billion towards the government buildings programme.

Treasury is also proposing to raise the development budget of the Infrastructure State department from Sh124.97 billion to Sh137.58 billion.

About Sh32.23 billion has been allocated towards the Mombasa-Nairobi Standard Gauge Railway (SGR), Dongo Kundu and Kenya Ferry Services (KFS) while Sh12.61 billion is for improving roads.

Some Sh5.93 billion is to promote and facilitate industrial development through value addition and investment and Sh1.32 billion for early learning and basic education towards improved access to primary education.

SOURCE OF FUNDS

According to the supplementary estimates presented to the National Assembly last week, Treasury is proposing to push up the national government’s overall budget by Sh80.1 billion — from Sh2.73 trillion to Sh2.81 trillion — about 2.9 per cent higher.

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