LIVETEXT: Uhuru's budget for Kenya

16: 47 He takes time to thank Treasury staff for their input in drawing the Budget.

16:44 Mr Kenyatta says to address inequality in Kenya he has introduced bold measures and urges MPs to work together to build an equitable and prosperous Kenya.

16: 41 He proposes to amend the Traffic Act to allow motorists to be fined on the spot for minor offences.

16: 38 Mr Kenyatta proposes to amend Retirement Benefits Authority Act to increase minimum funding level from 80pc to 100pc.           

16:33 He proposes capital reduction to anyone entering into a concession with government.

16: 29 Mr Kenyatta proposes to amend the penal code to outlaw operations of pyramid-type schemes that rip off Kenyans.

16: 26 He proposes to reduce duty on spirits to cushion Kenyans against drinking illicit and unhygienic liquor.

16: 24 Mr Kenyatta proposes to reduce duty on water from 10pc to 5pc and carbonated drinks from 10pc to 7pc and expects benefits to be passed on to consumers.

16: 22 He proposes to reduce duty for cosmetic and skin care products to make them affordable to Kenyan women.

16:21 Mr Kenyatta proposes to lower import duty for second hand clothes.

16: 18 In order to make power available to all Kenyans, Mr Kenyatta proposes to zero rate VAT on power generators.

16:14 Mr Kenyatta says that mobile telephony industry has grown tremendously and to make them accessible to as many Kenyan as possible, he proposes to exempt VAT on all cellular handsets.

16: 12 Proposes to zero rate VAT on locally produced gin cotton.

16: 10 He says that tax measure are grouped on their intended basis. To support industry to continue with business, he proposes to lower cost of production remove sugar levy and benefits passed to consumers in way of lower prices.

16: 05 Mr Kenyatta says Treasury will work on tax proposals from all Kenyans. Tax harmonisation task force on how best to reform the tax system.

16:02 He says gross expenditure for 2009/2010 will be at Sh258bn.

16: 00 Mr Kenyatta forecasts total revenue will reach Sh501bn by the end of the year.

15: 54 Procurement: Government will introduce strict ethical measure for officers working on public financial management to ensure no misuse of public funds.

15:52 He allocates Sh200million as an interest-free loan for financing investment opportunities for the disabled.

15: 50 Agriculture: Allocates Sh3bn to focus on mechanisation, irrigation, hybrid seeds and application of scientific farming methods as ways of seeking food security.

15: 48 Environment: Allocates Sh1.2m for a tree planting programme countrywide for conservation of the environment.

15: 45 Education: Mr Kenyatta allocates Sh1billion each for primary and secondary education; Sh7m for upgrade of two schools per constituency and Sh30 million for construction of one secondary school as a centre of excellence per constituency.

15: 43 He says a comprehensive programme of health care will be put in place and further to direct funding to the two Health ministries, Sh20 million will be allocated to each constituency for construction and equipping of a health centre in each constituency.

15: 41 Tourism: Allocates Sh400m for tourism marketing targeting the high-end market.

15: 39 He allocates Sh2.2bn for the resettlement of IDPs countrywide.

15: 37 Mr Kenyatta allocates Sh 525m or Sh2.5m per constituency to construct Jua Kali sheds and a further Sh1million for each constituency to equip them to boost youth employment.

15: 35 Allocates Sh108bn or Sh10 million for each constituency for construction of wholesale markets to address rural enterprise.

15: 34 Mr Kenyatta says to make it possible for every Kenya to be involved in building the economy he allocates Sh22bn, which is equivalent to Sh105 million for each for constituency as a resilience package covering health care among others.

15: 32 CDF: Allocates Sh12bn with each constituency set to receive Sh60 million for development.

15: 29 Investments on ICT: Allocates Sh1.3bn for purchase of mobile computers for every constituency for schools and roll-out of digital villages for employment opportunities in rural areas.

15: 27 Construction of light railway system and road by-passes to ease congestion on our roads.

15: 26 Government to construct a railway line from Mombasa to Kampala, Uganda for cheaper transportation of goods; allocates Sh3bn for the project, with a view of starting construction in the last quarter if this financial year.

15: 23 Fuel levy channelled through CDF for maintenance of rural roads.

15: 20 Security:  Focus on community policing by engaging youth to work with regular police and chiefs including funds to buy motorised bicycles to enhance security.

15: 18 He says that under National Accord, coalition government committed itself to build a prosperous Kenya and to that end allocates Sh2bn towards implementation of Agenda 4.

15: 16 Mr Kenyatta says electronic monitoring process on the way and once implemented will enable Treasury monitor projects at every stage and open to public to enable Kenyans check on progress of such projects.

15: 14 He says that the austerity measures are necessary to check government wastage.

15: 12 All Cabinet ministers and senior government officials should have one official vehicle whose engine capacity should not exceed 1,800cc after consulting with President Kibaki and PM Raila Odinga.

15:09 He says difficult times need bold decisions: Reduce ceiling of all ministries in priority expenditure: 80pc on furniture; 60pc on advertising and publicity; 40pc on telephones; 20pc on hospitality and services; 10pc on domestic and foreign travel allowance , moratorium on purchase of new vehicles except on security; fuel cards for government vehicles.

15: 07 Domestic borrowing will be short term to put in place a stimulus package without compromising government operations

15:05 Raising taxes not a good option, government sought to rationalise and remove non-priority expenditure.

15:04 Mr Kenyatta says the government will construct wholesale markets nationwide to market agricultural produce to address regional imbalance.

15:02 He says the theme of the budget is:“Overcoming today’s challenges for a better tomorrow.”

15:00 Mr Kenyatta says the budget is premised on the need to urgently redress the social and economic challenges.

14: 57 He tells Parliament that Kenya should focus on tackling challenges to achieve Vision 2030 through addressing such issues as regional inequalities.

14: 54 Mr Kenyatta gives a background of the Kenya situation and says that the gains achieved between the years 2003-2007 were reserved by the unfortunate events of the post election violence, drought caused by failed rains and rise in international consumer prices.

14:52 He says the budget was made on the backdrop of great challenges including the global financial crisis. All countries, developed and underdeveloped, have been affected by the crisis, he says.

14: 50: Mr Kenyatta begins reading the 2009/2010 budget.

14: 48: MPs remain standing as President Kibaki strolls into parliament to hear the Budget Speech in his capacity as Member for Othaya.

14.40: Mr Kenyatta enters Parliament flanked by his assistant Dr Oburu Odinga to warm applause from MPs.

Mr Kenyatta is expected to outline measures that will increase economic growth with main focus on infrastructure projects.

He is expected to allocate Sh Sh607 billion to recurrent expenditure while development expenditure will take up Sh 258 billion in the Sh867billion budget.

Kenya Finance minister Uhuru Kenyatta is reading the national budget in Parliament.