Members of the National Assembly on Wednesday, June 5th 2024 commenced debate on the budget estimates for the 2024/25 fiscal year.

 Chairperson, Budget and Appropriations Committee, Hon. Ndindi Nyoro, highlighted the country's positive economic performance saying the economy grew by 5.6 percent. 

He assured the House that inflation inflation was now under control at 5.0 percent.  However, he acknowledged the burden of debt servicing, stating that Kshs.1.08 trillion of the Consolidated Fund will be used to pay interest on our financial obligations. 

Vice Chairperson, Public Debt and Privatization Committee, Hon. (Dr.) Makali Muli, emphasized the importance of managing the country's public debt noting that out of the total Consolidated Fund Services expenditure, 90 percent will go to payment of public debt. 

“If we manage issues of public debt properly, then we could be able to save resources for other activities," he said.  

In the year under consideration, the education sector received the largest allocation at Kshs. 654 billion, representing 34.8 percent of the total budget. This allocation is partly for capitation, infrastructure, and staffing of schools, especially Junior Secondary Schools. The Teachers Service Commission (TSC) has been allocated half of the amount at Kshs.351 billion for teacher resource management. 

 Other areas in the sector with major allocations include free-day secondary school at Kshs.63.8 billion; Junior Secondary School Capitation at Kshs.30.6 billion; and scholarships as well as loans for University and TVET students at Kshs.55 billion

 "Members raised concerns about the school feeding programme and we have allocated Kshs3.5 billion," Hon. Nyoro said.

 Further, he assured the House of sufficient resources to confirm JSS interns.   

  "We have recommended that TSC confirm JSS interns. Do not wait till January 2025. Confirm these interns as soon as possible," he said.

 To boost food security, the agriculture and rural development sector received an allocation of Kshs.79.8 billion. This includes Kshs.10 billion for fertilizer programs and Kshs.12 billion for priority value chains like cotton, leather, dairy, and edible oils. Kshs.4 billion has also been allocated for post-harvest management.

 Notably, the edible oils value chain has been allocated approximately Kshs.1 billion for the National Edible Oil Crops Promotion Project, coconut industry revitalization, and the National Agricultural Value Chain Development Project, which includes support for cashew nut, canola, and sunflower development. These interventions are intended to reduce overreliance on the importation of edible oils by encouraging local production and processing.

 While seconding the Motion, Hon. (Dr.) John Mutunga (Tigania West) emphasized the responsiveness of the budget saying the Budget has been made to respond to the needs of the Kenyan economy.

 “We are cutting down on imports. We are moving towards import substitution. Am aware that the Ministry of Agriculture is in the process of ensuring we can produce our own edible oils," he said.

 The health sector is set to receive a total allocation of Kshs.126.8 billion. This includes Kshs. 2.5 billion for the Linda mama programme and equipping of various hospitals and Kenya Medical Training Colleges across the country. 

 However, Hon. Umulkheir Haru (Nominated) raised concern over scaling down of the Government immunizations programme and the Linda mama programme. She proposed that there should be free vaccinations for every mother and pointed out that such crucial programmes should not have budget cuts.

 The 2024/25 budget comes amidst a strengthening Kenyan Shilling, appreciating against major currencies like the US Dollar,Euro and British Pound.

 According to the Budget and Appropriations Committee Report on the 2024/25 budget, this upward trend is expected to continue due to positive market sentiment and the US Federal Reserve's anticipated rate cuts.

 "The stronger shilling is expected to attract capital inflows, reduce external debt repayments, and lower import costs," underscored Hon. Nyoro.

 Notably, the Budget and Appropriations Committee in its Report raised concerns about the lack of specific resources for integrating youth and the informal sector (Jua Kali) into the Affordable Housing programme and the absence of a framework for using local materials and labour.

 Under the energy sector, rural electrification, which includes the installation of new transformers and maximization of existing ones, Kshs.18 billion has been allocated, of which approximately Kshs.14.5 billion will be shared equally across all constituencies to enhance connectivity and access to power.  

The House is expected to continue debate today, Thursday, June 6, 2024