Rotich plans mini budget as revenues fall by Sh14.2 billion

Treasury Cabinet Secretary Henry Rotich. FILE PHOTO | NMG
Treasury Cabinet Secretary Henry Rotich. FILE PHOTO | NMG 

The Treasury is preparing a second supplementary budget that will focus on the four key sectors that President Uhuru Kenyatta believes will drive Kenya’s economic growth during his second term in office.

National Assembly Leader of Majority Aden Duale said the House has placed the approval of the mini budget on top of its priority when MPs reconvene from the long Christmas recess.

The reviewed  budget will channel funds on the four pillars plan dubbed the ‘Big Four’ that also includes food security, affordable housing, manufacturing and affordable healthcare.

“We are waiting for the Treasury to table a second supplementary budget for us to realign resources to the President’s Big Four projects. This is key priority business when we reconvene in February,” he told the Business Daily in an interview.

He said the Budget and Appropriations Committee is in place and ready to receive the mini-budget after the appointment of members and election of chairperson and vice chairperson.

This will be the second supplementary budget in the current final year and comes as the State struggles to raise cash with revenues trailing budgets. 

Government revenue fell by Sh14.25 billion in five months through November compared to the same period last year.

The first supplementary budget came in September and provided Sh12 billion for the repeat presidential vote, Sh22 billion for free day secondary education and Sh6.7 billion for the elderly monthly stipend.

Under the Big Four plan, the government guarantees to buy cotton from local farmers. It will also give incentives to investors to build more modern ginneries and textile manufacturing plants.

The President directed that Kenyan coffee, tea, fruits and vegetables be processed locally to increase their value in foreign markets.

Kenya will invest more on irrigation and subsidise farmers in the quest to boost production that will grow their earnings and lower the cost of food.

On universal healthcare, Mr Kenyatta said the government will make major policy and administrative reforms to ensure everyone has access to quality and affordable medical cover by 2022.