In a decisive step to address Kenya’s pressing needs and fiscal challenges, President William Ruto has assented to the Supplementary Appropriations Bill, which promises significant investments in critical sectors while enforcing stringent budgetary reductions across government arms.
On August 5, 2024, President Ruto signed the Supplementary Appropriations Act into law, following its approval by the National Assembly on July 31, 2024. This new legislation underscores the government’s commitment to essential reforms and economic support amidst ongoing fiscal constraints.
Key Allocations Under the New Law:
- Agriculture: KSh20 billion is allocated to support farmers, aiming to enhance production and productivity in the agricultural sector, a cornerstone of Kenya’s economy.
- Education: A robust KSh120.7 billion is designated for education reforms, including confirming positions for all Junior Secondary School teachers. Additionally, KSh31.3 billion will be directed to the Higher Education Loans Board to bolster higher education.
- Health: The Act provides KSh16.2 billion to fund health sector reforms and advance Universal Health Coverage, reflecting a strong commitment to improving healthcare accessibility and quality.
- Security: Salary increases for security officers are supported with KSh3.5 billion, addressing remuneration enhancements in line with recommendations from the National Task force on Police Reforms.
Strategic Budget Reductions:
To balance these critical investments, the Supplementary Appropriations Bill also introduces significant cuts to recurrent and development expenditures across government branches:
- National Government: A total reduction of KSh145.7 billion, including KSh40 billion from recurrent expenditure and KSh105 billion from development expenditure.
- Executive Budget: Reduced by KSh139.81 billion.
- Parliament: Faced a KSh3.7 billion cut.
- Judiciary: Budget trimmed by KSh2.1 billion.
Additional reductions include:
- State House and Office of the Deputy President: KSh6 billion cut.
- National Treasury: KSh7 billion reduction.
- Ministry of Health: KSh6.9 billion reduction.
- Ministry of Road and Transport: KSh17.3 billion cut.
President Ruto’s strategic approach seeks to address Kenya’s urgent needs while managing fiscal discipline. This balanced effort reflects the government’s focus on sustainable development and responsible governance, ensuring that essential services and sectors receive the necessary support amidst economic challenges.
This comes after the withdrawal of the Finance Bill 2024.
