National Treasury Cabinet Secretary Henry Rotich poses for a photo outside The National Treasury Building ahead of the 2018/19 budget presentation at Parliament on June 14, 2018. PHOTO | DIANA NGILA | NMG
Treasury secretary Henry Rotich has presented this year's budget, outlining the Sh3 trillion spending plans, including the taxation measures to finance the proposals.
The budget focuses on the Big 4 development agenda, whose key priority areas will be funded while keeping the already high debt sustainable.
This, according to Mr Rotich, is expected to propel growth to seven per cent in the next financial year.
These are some of the highlights of the budget speech:
On affordable housing, Mr Rotich proposes to amend the Employment Act: Employers to contribute 0.5 per cent for housing while employees to give 0.5 per cent from their pay.
On manufacturing, import duty on iron ore and steel, paper and paper products increased from 25 per cent to 35 per cent. The increase is meant to make local products more competitive.
Treasury has allocated Sh3 billion for construction of affordable housing.
Excise duty on private vehicles above 2500cc diesel and 3000cc petrol goes up from 20pc to 30pc to promote local assembly.
Tax on mobile money transfer charges increases from 10pc to 12pc, proceeds to fund universal health care.
Treasury has further allocated Sh2 billion for primary health care and Sh7 billion for cancer diagnosis equipment and Sh400 million for cancer institute.
Kisumu, Nyeri, Isiolo and Machakos to participate in a health survey to enable the roll out of a comprehensive health programme.
On education, technical education gets Sh16 billion to get more instructors and develop curriculum, Sh91 billion for universities. Sh2 billion has been allocated for school feeding programme and Sh5 billion to get more teachers in the basic education sector.
On ICT, Sh11.9 billion for the digital literacy programme and Sh310 million for digital migration.
To support for disadvantaged persons: Sh7.9 billion has been allocated for orphans, the elderly to get Sh17.3 billion.
To support the youth, MSMEs to get more funding, Sh200 million to construct a sports academy.
On anti-corruption drive, Sh36.8 billion will go to Parliament to play oversight. Sh2.9 billion for Ethics and Anti-Corruption Commission (EACC).
New procurement regulations including common agency to guide procurement pricing, and the use of e-procurement platform. Procurement will also be tied to preference for Kenyan made goods.
Casino licence applicants to be properly vetted to counter money laundering.
National toll fund to enhance growth of national roads. Several toll projects being developed in the roads sector.
Lending to private sector has been down. National Credit Guarantee Scheme to be introduced to ease financial constraints for MSMEs. Law capping interest rates to be amended.
The Retirement Benefits Authority to be empowered to take action on employers who fail to remit pension.
On insurance, proposal to change from indemnity based insurance to index based insurance to improve uptake.
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