The sports category has moved to a new website.
ADVERTISEMENT

Key highlights of Ruto's maiden Sh3.6 trillion budget

The education sector took the lion's share with an allocation of Sh628.6 billion.

Treasury CS Njuguna Ndung'u in Parliament to deliver the 2023/24 Budget Policy Statement

Treasury Cabinet Secretary Njuguna Ndung'u presented the Sh3.6 trillion FY2023/24 budget statement to the National Assembly on June 15, 2023.

This year's budget highlights various key aspects concerning the Kenyan economy and government expenditures.

Addressing the National Assembly, CS Ndung'u emphasized the impact of the depreciation of the Kenyan Shilling on the country's public debt.

With a significant portion of the debt denominated in foreign currency, its size has increased.

ADVERTISEMENT

Despite this challenge, the CS reassured the nation that Kenya's public debt, amounting to Sh9.4 trillion, remains manageable even amidst global economic disruptions.

Regarding fund allocation, the Treasury proposed budgetary provisions for several ministries, including Education, Transport, and Agriculture.

The education sector took the lion's share with an allocation of Sh628.6 billion.

ADVERTISEMENT

This includes Sh12.5 billion for free primary education, Sh65.4 billion for free day Secondary education, and Sh25.5 billion for Junior Secondary capitation.

CS Njuguna’s proposal also included Sh4.8 billion for recruiting 20,000 intern teachers, Sh1.1 billion for teacher promotions, Sh4.9 billion for the school feeding program and Sh940 million for the provision of sanitary towels.

Additionally, Sh1.3 billion was allocated for teacher training on the competency-based curriculum, and Sh400 million for digital literacy programs and ICT integration in secondary schools.

ADVERTISEMENT

In Agriculture, Treasury recommended an allocation of Sh49.9 billion.

During his speech, the CS highlighted the need to reduce reliance on imports for essential food items.

Currently, Kenya imports 35% of its rice requirements, deviating from the EAC common external tariff of 75%.

Similarly, the country imports less wheat, around 10%, compared to the expected 35%.

ADVERTISEMENT

The CS proposed revisions to the VAT rate on petroleum products by amending the VAT Act.

This revision aims to eliminate the preferential rate on petroleum products, subjecting them to the standard VAT rate of 16%.

However, in an effort to mitigate the burden on consumers, the government plans to remove VAT on Liquefied Petroleum Gas (LPG) and abolish the import declaration fee and railway development levy on LPG.

Additionally, the import declaration fees and railway development levy will not apply to equipment, machinery, and motor vehicles used officially by the Kenya Defense Forces and National Police Service.

JOIN OUR PULSE COMMUNITY!

Unblock notifications in browser settings.
ADVERTISEMENT

Eyewitness? Submit your stories now via social or:

Email: news@pulselive.co.ke

ADVERTISEMENT