The Budget and Appropriations Committee met on Wednesday, March 3, 2024 to consider budget implementation for the first half of Financial Year 2023/2024.

In a meeting chaired by Hon. (Dr.) Makali Mulu (Mwala), the Committee was told that during the first half of the Financial Year 2023/24, the total revenue received in the Consolidated Fund was Kshs.1.445 trillion, which is a 34 percent performance against the total annual projection of Ksh.4.281 trillion. This comprised tax revenue, non-tax revenue, domestic borrowing, external loans and grants, and other domestic financing.

Further, the Committee was apprised that in the in the first six months of the Financial Year 2023/24, the overall sectoral expenditure amounted to Kshs.950 billion, against a total sector allocation of Kshs.2.464 trillion, which was equivalent to 38.6 percent of the total sector approved budget in Supplementary 1. 

In addition, the Committee was briefed on the revenue projections for the 2023/24 budget, whereby the administrative measures coupled with the revenue-raising measures contained in the Finance Act 2023, are expected to increase ordinary revenue collection from 14.1 percent of GDP, at Kshs.2.042 trillion in FY 2022/23 to 15.8 percent of GDP, at Kshs.2.571 trillion in FY 2023/24. 

On the state of the economy, Kenya’s economic growth is expected to remain strong amid domestic and global headwinds. This is based on the national Treasury’s estimates, where the economy is projected to expand by 5.5 percent in 2024, and above 6.0 percent on average, in the medium term. The growth is premised to be driven by the easing of the cost of living on account of improved agricultural output, including food production, and declining global prices.

In addition to that, the global growth is projected to increase from an estimated 2.9 percent in 2023, to 3.1 percent in 2024, which is attributed to reduced inflation which is poised to support demand, and improved global trade. However, the geopolitical conflicts between Russia and Ukraine, and Israel and Hamas; remain a huge risk to global supply chains.

The Committee shall be engaging various stakeholders including the Controller of Budget, the Commission on Revenue Allocation, the National Treasury and Economic Planning, the Auditor-General and the Central Bank of Kenya.