Education, energy sectors win in Sh4tr Ruto budget.
A budget of Sh4 trillion approved by Parliament has revealed the areas of President William Ruto’s Kenya Kwanza administration that are given priority.
The National Assembly approved the revenue budget projections for 2024–2025 on Thursday during a late-night session. This set the stage for the Appropriations Bill to be considered the following week.
The Executive received the lion’s share of the Sh4 trillion, with a cumulative allocation of Sh2.39 trillion, up from Sh2.1 trillion in the fiscal year 2023–2024. The Judiciary and Judicial Service Commission was given Sh24.64 billion, and Parliament was given Sh44.6 billion.
The budget, which is the largest since Kenya’s independence, also contains an additional Sh400 billion for equitable distribution among the 47 counties and Sh1.21 trillion for Consolidated Fund Services.
Under the Executive, the Deputy President’s office has been given Sh4.8 billion, an increase from Sh3.73 billion, and the Office of the President will receive Sh5.1 billion, a significant rise from the Sh4.3 billion allotted in the previous fiscal year.
Sh9.5 billion was allowed for the State House, while an additional Sh275 million was approved for the Cabinet Affairs Office. The amount to be given to the Prime Cabinet Secretary’s office is Sh1.1 billion, a reduction from the Sh1.2 billion it was given during the previous fiscal year.
Given the current macroeconomic difficulties, the budget aims to achieve an economic turnaround. Part of the report on the budget estimates states, “Key interventions include lowering the cost of living, creating employment opportunities, enhancing food security, improving the fiscal space, increasing foreign exchange earnings and promoting inclusive growth.”
According to the United Democratic Alliance (UDA) manifesto, the education sector is a top priority for President William Ruto’s administration. It would get the greatest portion of the national government’s budget—Sh654 billion—according to a sectoral strategy. This includes giving the Teachers Service Commission Sh351 billion to oversee teacher resources.
Major allocations in the sector also go for junior secondary school capitation at Sh30.6 billion, free-day secondary education at Sh63.8 billion, and loans and scholarships for TVET and university students at Sh55 billion.
Roads received Sh178 billion, transportation received Sh42 billion, and energy and electrification received Sh64.2 billion of the Sh462.8 billion allotted to the Energy, Infrastructure, and ICT sectors.
Notably, Sh18 billion has been allotted to the energy sector for rural electrification, which includes installing new transformers and making the most of those that already exist. Of this amount, roughly Sh14.5 billion will be distributed equally among all constituencies in order to improve connectivity and access to power.
The head of the Budget and Appropriations Committee, Ndindi Nyoro, said, “On top of the usual budget, we have included the Sh14.5 billion to be divided equally among the 290 constituencies for electrification of our villages and estates in our republic.”
President Ruto’s attention has also turned to the health sector, which was given Sh126.8 billion, of which Sh3.7 billion was set aside for the integration of medical interns and 2.5 billion for Community Health Promoters to boost preventative healthcare.
Following a false start to the year, medical interns now have an excuse to flash their whites, thanks to a billion-dollar allocation from Parliament to support their integration into the workforce.
The interns received the monies after they signed a return-to-work agreement with the government through the doctor’s union, after an eight-week strike that had rendered the nation’s healthcare services crippled. The interns had been calling for improved working conditions and protesting salary reductions from Sh200,000 to Sh70,000.
Additional funding under the health vote will go toward the Linda Mama program, hospital equipment upgrades, and Kenya Medical Training College (KMTC). This also includes a contribution to the emergency and critical illness fund as well as the newly created main health care fund.
A budget of Sh79.8 billion will be given to the Agriculture and Rural Development sector to promote food security and reduce living expenses. This comprises about Sh12 billion for several priority value chains, including cotton, leather, dairy, and edible oils, among other crops, and Sh10 billion for fertilizer programs.
MP-hired staff and parliamentary staff also benefited greatly from the House’s adoption of the Budget and Appropriations Committee’s recommendation that they receive a ten percent pay increase.
Nyoro pointed out that a pay review was due for Parliamentary staff members, as it hadn’t been done since 2016.
Many misunderstand Parliament to refer to Members of Parliament; in reality, there are only elected officials present. Here are those who are employed as well. It is important to highlight that neither the salaries of Parliament staff members nor those of employees working in constituency offices have increased since 2016. We are putting in an additional 10% of funding for both in this budget,” Nyoro stated.
An additional Sh458.2 million was given to the State Department of Parliamentary Affairs.
After the BAC proposed increasing the amount given to each MP’s constituency fund through the National Government Constituency Development Funds (NG-CDF), MPs will not be excluded either. Consequently, the National Government Affirmative Action Fund (NGAAF) received a funding rise of Sh500 million, while the NG-CDF was raised by the House from its existing level of Sh40 billion to Sh62.9 billion.
“We increased the funds to Sh62.9 billion in the National Geographic Conservation Fund for the 2024–2025 fiscal year, meaning Kenyan parents will receive significantly more in bursaries,” Nyoro continued.
Additionally, the Ethics and Anti-Corruption Commission (EACC) has been given Sh4 billion, instead of the Sh6.3 billion that was originally asked, to support the fight against graft. Also allotted Sh6.3 billion is the Office of the Director of Public Prosecutions (ODPP).
Of the Sh3.7 billion allotted to the Independent Electoral and Boundaries Commission (IEBC), Sh2.7 billion is anticipated to be used to pay outstanding legal fee bills.
In addition to its existing budget, the National Treasury was given an additional allocation of Sh2 billion. The Appropriations Bill is now anticipated to be discussed by Parliament the following week, which will free up time for Treasury Chief Secretary Njuguna Ndung’u to present the budget on Thursday.
The budget’s allocation to the education sector, which was intended to improve infrastructure, attract more teachers, and aid in the implementation of the Competency-Based Curriculum (CBC), proved to be highly advantageous.
In particular, Sh29.9 billion has been made aside for basic education, and Sh103.3 billion for secondary education. Prior to changes, the budget estimates that were provided were Sh104.76 billion for secondary education and Sh25.68 billion for basic education.
According to estimates for 2024–2025, the Teachers Service Commission will be allocated Sh358.23 billion for teacher resource management, planning, governance, and standards.
The State Department for Technical and Vocational Education has been allocated Sh30.69 billion, the State Department for Higher Education and Research has been allocated Sh127.99 billion, and the State Department for Basic Education has been allocated Sh142.26 billion. This brings the total amount allocated to Sh300.94 billion.
“The Consolidated Fund shall issue a sum not to exceed Sh127,986,194,444 to meet the expenditure (Recurrent and Development) during the year ending June 30, 2025,” the paper states.
This allotment represents a substantial departure from prior years. For example, the education sector received Sh497.7 billion total in the 2023–2024 fiscal year, of which Sh12.4 billion went toward basic education and Sh92.2 billion toward secondary school.
Based on the available data, the Ministry of Health has been given Sh131.02 billion, indicating that the health sector remains a key priority. This budget prioritizes, among other things, improving maternal and reproductive health, acquiring medical supplies, and expanding universal health coverage (UHC).
The State Department for Medical Services was given Sh100.013 billion, and the State Department for Public Health and Professional Standards was given Sh26.83 billion, prior to the revisions.
The health sector received Sh122.6 billion in the 2023–2024 budget. This minor increase in the 2024/2025 budget represents continuous attempts to strengthen the healthcare system post-COVID-19 and address major and persistent health concerns, which culminated in an eight-week doctor’s strike that was summed up with demonstrations.
Education, energy sectors win in Sh4tr Ruto budget.
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