kenya budget rotich - kenyalivenews.com

The following is the Overall Ksh3.074 Trillion budget that has grown by about 10.83% from
the 2017/18 financial year which was Ksh2.77Trillion

Entity                                  Allocations (Board One)
National Government                Ksh. 1.6Trillion
Consolidated Fund Service        Ksh. 962Billion
County Allocation                     Ksh. 372Billion
Parliament                               Ksh. 42Billion
Judiciary                                  Ksh. 17Billion(Proposed to be slashed by Ksh2.5Billon)

Budget Expenditure of the National Government

Recurrent Expenditure             61.01%

(The wage bill (salaries) estimated at Ksh416.86B. This figure represents 32.42% of total allocation towards national government)

Development                           38.99%

Key Development spends:

Department of infrastructure Ksh112.99Billion

Department for Transport Ksh90.42Billion

Department for Energy Ksh59.89Billion

Public Debt Obligations

-Ksh870billion shillings has been set for debt repayment
-This representing a 25.79% compound growth from 3years ago
-This will lead to a worsening in the debt service-to-revenue ratio to 51.56%
-Debt service ratio threshold is 30%(Sustainable debt)
-Kenya’s debt obligation expected to hit an historic Ksh5Trillion by June
2019

Financing the budget

Ordinary Revenue (mainly tax generated) is expected to be at Ksh1.74 Trillion
To achieve this, Rotich has proposed Income Tax Bill2018 to do the
following

i). increase in individual tax rate to annual income above Ksh9million from 30% to 35%;

ii). increase incorporate tax rate to companies with annual taxable income exceeding KES500million from 30% to 35%

iii). Presumptive rate of 15% of the single business permit fee issued by a County government (This targeting small business)

iv). the bill also seeks to move some items from zero rate to exempt. This is likely to push the cost of a number of basic goods up: largely medicine, fuel, and wheat and maize flour products

Deficit Financing

All revenue accounted for the budget still has a Ksh562Billion deficit.

-This will require more borrowing to fund.
-Foreign and domestic borrowing will be put to use to bridge the gap.

County Allocations

County Governments will be allocated Ksh372Billion. This broken down as follows;

I. Equitable Share                          Ksh314Billion
II. Conditional (Natl Govt rev)        Ksh17Billion
III. Fuel Levy Fund(15%)               Ksh8.2Billion
IV. Conditional (loans & grants)       Ksh33.2Billion