President William Ruto’s administration has unveiled the budget for the 2024-25 fiscal year, signaling strategic shifts in key sectors crucial to Kenya’s economy and societal well-being.
Education Investments
The administration has prioritized education with an increased budget of Sh656.6 billion, aimed at fostering skills development and upgrading junior secondary school teachers to permanent status. However, allocations for free primary and day secondary education have been reduced by Sh6.9 billion to Sh71 billion, potentially affecting institutions and learners. Similarly, funding for the school feeding program has decreased to Sh3 billion from Sh4.9 billion.
Health Sector Challenges
In contrast, the health sector faces budget cuts amounting to Sh14.2 billion, reducing allocations to Sh127 billion. This reduction could impact Universal Health Coverage efforts and service delivery, amidst ongoing challenges such as delayed salaries and healthcare strikes at the county level. Despite this, specific allocations include Sh4.2 billion for Universal Health Coverage coordination and Sh4.6 billion for specialized medical equipment, along with provisions for free maternity healthcare and medical cover for vulnerable groups.
Boosting Agriculture for Food Security
Agriculture has received a substantial boost with an allocation of Sh84.9 billion, up from Sh49.9 billion. This investment aims to enhance food security through initiatives like a doubled Sh10.0 billion fertiliser subsidy program and funding for small-scale irrigation, value-addition projects, and youth and women empowerment in agriculture. The sector, which contributes significantly to GDP and employment, is expected to stabilize food prices and support economic growth.
Social Protection and Economic Support
The budget also emphasizes social protection, allocating Sh31.3 billion for initiatives such as cash transfers to elderly persons, orphans, vulnerable children, and individuals with severe disabilities. Additionally, the Hustler Fund, with an allocation of Sh5 billion, aims to support small businesses and individuals, contributing to economic resilience.
Tax Measures and Economic Outlook
Concerns linger over proposed tax measures, which could potentially increase the cost of living by affecting basic commodities and essential services. Despite these challenges, the government anticipates a robust economic growth rate of 5.5% in 2024, bolstered by a resilient services sector and favorable global commodity prices. The stable macroeconomic environment, with inflation declining to 5.1% in May 2024 from a peak of 9.6% in October 2022, provides a positive backdrop for economic prospects.
Conclusion
As Kenya prepares to implement its 2024-25 budget, stakeholders are closely monitoring the implications of these strategic spending decisions. Balancing fiscal prudence with socio-economic impact will be critical to achieving sustainable development and addressing the diverse needs of Kenyan citizens.
Photo Source: Google
By: Montel Kamau
Serrari Financial Analyst
18th June, 2024
Article and News Disclaimer
The information provided on www.serrarigroup.com is for general informational purposes only. While we strive to keep the information up to date and accurate, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability, or availability with respect to the website or the information, products, services, or related graphics contained on the website for any purpose. Any reliance you place on such information is therefore strictly at your own risk.
www.serrarigroup.com is not responsible for any errors or omissions, or for the results obtained from the use of this information. All information on the website is provided on an "as-is" basis, with no guarantee of completeness, accuracy, timeliness, or of the results obtained from the use of this information, and without warranty of any kind, express or implied, including but not limited to warranties of performance, merchantability, and fitness for a particular purpose.
In no event will www.serrarigroup.com be liable to you or anyone else for any decision made or action taken in reliance on the information provided on the website or for any consequential, special, or similar damages, even if advised of the possibility of such damages.
The articles, news, and information presented on www.serrarigroup.com reflect the opinions of the respective authors and contributors and do not necessarily represent the views of the website or its management. Any views or opinions expressed are solely those of the individual authors and do not represent the website's views or opinions as a whole.
The content on www.serrarigroup.com may include links to external websites, which are provided for convenience and informational purposes only. We have no control over the nature, content, and availability of those sites. The inclusion of any links does not necessarily imply a recommendation or endorsement of the views expressed within them.
Every effort is made to keep the website up and running smoothly. However, www.serrarigroup.com takes no responsibility for, and will not be liable for, the website being temporarily unavailable due to technical issues beyond our control.
Please note that laws, regulations, and information can change rapidly, and we advise you to conduct further research and seek professional advice when necessary.
By using www.serrarigroup.com, you agree to this disclaimer and its terms. If you do not agree with this disclaimer, please do not use the website.
www.serrarigroup.com, reserves the right to update, modify, or remove any part of this disclaimer without prior notice. It is your responsibility to review this disclaimer periodically for changes.
Serrari Group 2023
