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Unpacking of the 2022 Medium Term Debt Strategy (MTDS)
The Unpacking of the 2022 Medium Term Debt Strategy provides an evaluation of the borrowing strategy for FY 2022 and the Medium Term, in light of current debt environment. Factors considered in this analysis include; Kenya’s high stock of debt, rising debt servicing requirements, the upside risk environment, fiscal space insufficiency under the current debt ceiling, and the need to attain high economic growth rate if Kenya’s debt stock is to be sustainable.
Unpacking of 2022 of Budget Policy Statement
The policy thrust of the 2022 Budget Policy Statement is captured in two broad categories: the Economic Stimulus Programme and the Big Four Agenda. The primary objective is to accelerate economic recovery through some select priority economic policies and structural reforms to be implemented in the 2022/23 – 2024/25 MTEF period. The theme of the 2022 BPS is, “accelerating economic recovery for improved livelihood.”
The medium-term outlook (2022/23 – 2023/24) remains uncertain and subdued for several reasons. Firstly, the conduct of the electoral process is a key determining factor: high political tensions are likely to seriously dampen economic activity whereas a more contained electoral process could lead to moderate growth. Secondly, the prevailing drought conditions could spill over into 2022 with agricultural activity notably farming and transportation of produce likely to be further subdued due to fear of violence or actual eruption of violence. Thirdly, the lingering effects of the COVID pandemic remain a threat and there is a risk of deadly resurgence as the campaign activities which typically flout all social distancing directives increase significantly in a population with low vaccination rates. The Budget Options for 2022/2023 recognizes these challenges to the economy and proposes some measures to mitigate such risks.
Budget Watch for 2021/2022 and the Medium Term
The 2021/2022 budget is an economic recovery budget that is expected to spur economic activities in the country thereby enhancing growth prospects. The budget has been prepared at a time when the global economy is experiencing a rebound in growth largely due to extensive vaccination efforts in a few large economies that has led to the lifting of most covid-19 containment restrictions. Domestically, the country is showing some signs of economic recovery even as it continues to deal with the covid-19 pandemic and its adverse effects. Notably, the Service sector which was the most adversely affected by the pandemic has shown significant improvement and is likely to post a much better performance this year compared to 2020. To illustrate, the education sub-sector which registered a significant decline in 2020 has fully resumed its activities. Significant recovery is also observed in the transportation sub-sector as well as wholesale and retail. On the other hand, the recovery in the accommodation and restaurant sub-sector has been slower due to slowdown in tourism and continuation of social distancing directives. It is largely expected that increasing the vaccination coverage coupled with implementation of the strategic priorities of the government under “the Big Four agenda” and the “Post covid-19 Economic Recovery Strategy (ERS)” will bring about economic recovery. The theme of the 2021/2022 budget is “Building back better: strategy for resilient and sustainable economic recovery and inclusive growth.”
The 2021/2022 budget has been prepared against the background of a precarious economic situation, as the country continues to address the challenges associated with the covid-19 pandemic and its adverse effects, one year on. Between March and April 2021, because of a lethal third wave of the pandemic, the country had to once more contend with strict covid containment measures reminiscent of the first wave in March 2020. It is worth noting that the country entered this third wave in a more precarious position than the first wave due to higher unemployment and poverty levels. The distribution of vaccines is expected to significantly improve the situation by bringing the pandemic under control. However, in Kenya and indeed most countries in sub-saharan Africa, the distribution and uptake of the vaccines has been quite slow. This will have an impact on the duration of the pandemic and consequently, its effects on economic growth.
Budget Options for 2021/2022 and the Medium Term
The Kenyan economy is currently facing significant challenges with the COVID-19 pandemic worsening an already dire situation. Indeed, the economy was already showing signs of distress even before the COVID pandemic.
The Budget Options for 2021/2022 recognizes these challenges to the economy and proposes some measures to reduce the expenditure pressures and accord the country some fiscal space.
Budget Watch For 2020/2021 And The Medium Term
The 2020/2021 budget is a crisis budget that must balance between mitigating the socio-economic impact of a health pandemic while still providing adequately for existing administrative and economic needs. This budget is being implemented at a time when the economy is navigating uncharted waters on account of the COVID-19 pandemic....
Half Year Economic & Fiscal Update, August 2020
This brief provides a summary of key recent economic and budget developments and is intended to keep stakeholders especially the legislators updated on the latest trends in the economy.
ANALYSIS OF THE FINANCE BILL, 2020
The Finance Bill is prepared in accordance with Sections 40 and 41 of the public Finance Management Act, 2012. Principally, the Bill is intended to introduce amendments to the existing tax laws in a bid to raise additional revenue to finance the budget in a fiscal year and subsequent ones. The Finance Bill also proposes to grant various tax incentives targeted to spur economic growth so as to yield increased revenue in future. Finally, the Bill introduces miscellaneous amendments to various financial sector statutes to enhance enforcement and streamline administrative measures.
This Bill proposes to amend some sections of the Income Tax Act, Value Added Tax Act, Excise Duty Act, Miscellaneous Fees and Levies Act, Tax Appeals Tribunal Act and the Tax Procedures Act. Also, there are proposed amendments to eight (8) financial sector statutes to address varied aspects in relation to the policies underpinning the budget in medium term. The statutes are: the Public Roads Tolls Act, the Capital Markets Act, the Insurance Act, The Standards Act, the Retirement Benefits Act, the Kenya Revenue Authority Act, the Roads Maintenance Levy Act and the Insolvency Act.
The Unpacking of the Estimates of Revenue and Expenditure for 2020/21 and the Medium term
The Unpacking of the Estimates of Revenue and Expenditure for 2020/21 and the medium term provides a critical evaluation of the extent to which the Budget for FY 2020/21 will respond to the COVID-19 pandemic and also its adherence to the tenets outlined in law as well as international best practice.
Unpacking of the Supplementary Estimates No.II for Financial Year 2019-20
The second supplementary estimates for financial year 2019/2020 were submitted to the National Assembly on 14th April 2020. This is pursuant to Article 223 of the Constitution and section 44 of the Public Finance Management Act 2012, which provide for.......
The COVID 19 global pandemic: Impact to the economy and policy options
The outbreak of a novel coronavirus disease (COVID 19) in China has quickly morphed into a global pandemic that is threatening the world economy. In December 2019, China alerted the World Health Organization (WHO) to a rising number of cases of unusual pneumonia in Wuhan, a port city of 11 million people in the central Hubei Province.
Unpacking Of the Budget Policy Statement & Medium-Term Debt Management Strategy 2020
The 2020 budget policy statement provides for fiscal policies that are meant to sustain Kenya’s economic growth under a sluggish global growth. It sets the tone of the various policies that will need budgeting over the medium term so as to harness the national agenda i.e. “the Big 4 Agenda” for job creation and economic prosperity.
Unpacking of the Supplementary Budget I for FY 2019/20
The Unpacking of the Supplementary Budget I for FY 2019/20 provides a critical evaluation of the extent to which it deviates from the Approved Budget for FY 2019/20 and also its adherence to the tenets outlined in law as well as international best practice.
The Budget Watch 2019/2020 12th Edition.
The Budget Watch disseminates findings of the Parliamentary Budget Office on key issues regarding the budget estimates in a particular financial year. The findings of the 12th edition of the Budget Watch have been disseminated in the process of scrutiny of the budget for the financial year 2019/2020 by the Legislature.
Quarterly Brief 24 April 2019
Anatomy of a Food Crisis, "Can Kenya rise above the perennial hunger?"
Drought and famine in Kenya is an increasingly common phenomenon. Unless leaders rise to the occasion, food shortage will continue to persist.
The Budget Options for 2019/20
The Budget Options for 2019/20 explores the dynamics of moving the economy from the 5-6% economic growth rate where the economy has stagnated over the past five years to a higher growth trajectory that will reduce poverty and enhance the living standards of Kenyans. The challenge lies in unlocking a higher productive capacity.
The PBO was established in the year 2007 as a unit under the Directorate of Information and Research services following a resolution of Parliament. The office further got a legal backing with the enactment of the Fiscal Management Act 2009 (FMA), which established the PBO as an office in the Parliamentary Service Commission. The office was subsequently elevated to a directorate in 2010.
This Analysis of the Finance Bill, 2018
The Finance Bill, 2018 contains various changes to the Income Tax Act, VAT Act, Excise Duty Act, Miscellaneous Fees and Levies Act, Tax Tribunal Act and Tax Procedures Act. Changes on tax rates or tax measures are estimated to yield at least Ksh. 30 billion. The Bill also introduces various........ read more, below attached pdf
2018/19 Budget Watch
The Budget Watch disseminates findings by the Parliamentary Budget Office on key issues regarding the budget estimates in a particular financial year. The findings of the 11th edition of the Budget Watch have been disseminated in the process of scrutiny of the budget for the financial year 2018/2019 by the Legislature.
The Half Year Economic & Fiscal Update, August 2018
This brief is a supplement to the monthly bulletin which details key economic and budget developments in a given month. The 2018 half year update gives a more detailed analysis of economic performance in the course of the financial year. It is intended to keep stakeholders especially the legislators updated on the latest trends in the economy.