Treasury CS Henry Rotich has unveiled the state’s planning for the 2018/2019 financial year after he presented the budget in parliament. The Big Four Agenda is one of the main focuses of the budgetary plan, with healthcare, housing, manufacturing and food security all catered for in the budget, and CS Rotich said tough choices had to be made, to channel resources to the Big Four enablers.
The theme was ‘Creating jobs, transforming lives and driving prosperity,’ and the 3 trillion budget sought to not only fulfil the expectations of Kenyans but also provide a stable economic growth, although for many, loopholes still exist like the national debt. In order to reduce the cost of production for manufacturers, the CS said the cost of off-peak power has been cut by half, in what may be a boost to manufacturers. On the issue of housing, the private sector will be involved to develop low-cost housing, “This will require proper registration and adoption of low cost but quality building materials,” said CS Rotich. On the health sector, the Treasury CS said a pilot NHIF program will be conducted in four Counties, with the target undoubtedly being the achievement of universal healthcare. Farmers haven’t been left behind, with the government upscaling crop and livestock insurance for small-scale farmers, in addition to providing credit facilities.
The Treasury CS further revealed that in the financial year ending June 2018, the government estimates the fiscal deficit will be 7.2 percent of GDP, down from 9.1 percent of GDP in the previous year. This was despite the additional expenditure and requirements brought about by the long election period, the long drought experienced in the country, implementation of CBAs and a shortfall in revenue collection. However, he said in order to recoup the revenue shortfalls, a number of initiatives have been agreed between the state and KRA.