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Treasury CS Henry Rotich presents the Budget

Thursday June 13 2019

Treasury Cabinet Secretary Henry Rotich with the Budget briefcase

Treasury Cabinet Secretary Henry Rotich with the Budget briefcase at the National Treasury on his way to Parliament to present the 2019/2020 Budget on June 13, 2019. PHOTO | EVANS HABIL | NATION MEDIA GROUP 

ANITA CHEPKOECH
By ANITA CHEPKOECH
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Kenya will spend Sh3.02 trillion in the new financial year that starts in two weeks.

National Treasury Cabinet Secretary Henry Rotich is presenting the Budget in Parliament.

Here are some highlights from his speech:

Key highlights

VAT refunds be cleared in 60 days; verified pending government bills of Sh10.9bn to be paid in 30 days.

Local motor vehicle and cycle assemblers win big; all ministries directed to exclusively buy from them.

Betting firms, gamblers: introduces 10pc tax on all amounts staked

Slaps 15pc tax on cigarettes, alcohol.

Government to introduce credit cards for state officials local and foreign travel in a bid to control expenditure.

Bodaboda: Amend thirty party risk to ensure all bodabodas have insurance for passengers.

Review of universities public financial management and introduce radical measures; look into those unable to sustain the number of students they have.

TAX MEASURES:

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Increased excise duty:

  • Alcohol and Cigarettes - 15 percent
    - 750ml wine to Sh136, which is Sh18 more
    - Whisky up by Sh24
    - Packet of cigarette by Sh8

Introduce excise duty:

  • Betting services at 10 percent of the amount staked

Exempted from VAT:
- IT: Locally made motherboards
- Plastic recycling plants

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How Budget speaks to Big Four:

  • Allocated Sh450.9 billion to Big Four and their enablers.
  • UNIVERSAL HEALTHCARE- Sh48.8 billion.
  • Social welfare initiative - Sh7.9 billion.
  • Sh14.4 billion for Kenyatta National Hospital.
  • Sh1.2 billion for health workers internship programme
  • AFFORDABLE HOUSING
  • Sh10.5 billion for affordable housing including police
  • Sh5 billion for housing development fund
  • MANUFACTURING
    Textile firm Rivatex to be revived. Allocated Sh1.1 billion to employ over 3,000 Kenyans.
  • AGRICULTURE
  • Sh2 billion for value addition chain
  • Sh3 billion for coffee sector
  • Sh1 billion for crop diversification, Sh700 million for smallholder dairy farming
  • Sh7.9 billion for ongoing irritation projects
  • Fish landing sites to be improved
  • ENERGY
    Power transmission Sh8.6 billion
    Sh5.5 billion for last mile
    SECURITY
    Security sector to receive Sh326 billion
    EDUCATION
    Sh11.6 billion for Helb

    ANTI-GRAFT FIGHT
    Sh2.9 billion to EACC
    Sh3 billion to DCI
    Sh5.7 to office of Auditor General

    SOCIAL WELFARE
    Sh16.6 billion for elderly
    Sh1.1 billion for cash transfer to persons with severe disability

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  • We expect counties to control of expenditures on personal emoluments.
  • Public debt is at sustainable levels.
  • We expect to borrow according Public Management Act, 2012, and seek to minimise cost of public debt.
  • The loan proceeds from our partners have been used mostly for infrastructure like roads and energy.
  • In 2019/2020 financial year we expect revenue of Sh2.1 trillion.
  • Deficit 5.6 percent, a decline from of 7.4 last financial year.
  • Kenya Revenue Authority to upgrade IT system.
  • Enhance transparency and accountability in procurement, cut on overspending and standardise costs.
  • Actions to stem expenditure:

    Extension of services for civil servants retiring at the age of 60.
    Rooting out of ghost workers
    Use of Ifmis to improve on wage and pension management.

  • I have set aside Sh10 billion for youth and women. I encourage them to take advantage of it.
  • Youth registration to Ajira of Sh10,000. To promote businesses that create jobs.
  • For importers and exporters: To facilitate faster clearance of cargo and curb tax evasion and reduce entry of counterfeit goods.
  • We expect to reduce cost of electricity to manufacturers by 20 percent.
  • The Budget lays a strong foundation for addressing President Uhuru Kenyatta's Big Four Agenda.
  • Government will take measures to mitigate negative impacting crops.