Treasury Cabinet Secretary (CS), Njuguna Ndung’u on Thursday June 13, 2024 tabled the 2024/2025 budget before the National Assembly.
According to the Treasury CS, Kenya’s GDP grew by 5.6% in 2023, up from 4.9% in 2022, surpassing the global average.
He said that the domestic growth in 2023 was driven by enhanced funding in Agriculture.
“We are seeing a strong economic recovery of 5.6%,” he said.
The CS also pointed out that Kenyans played a key role in the budget making process during the intense public participation stage, as most of them suggested they wanted better health, as well as calling on the government to address flood effects in the country.
At the same time, the Treasury CS noted that natural disasters like floods, drought, covid led to redirecting budget for economic development to saving lives and property
Ndung’u noted that sectors like sugar, cotton and pyrethrum industries have seen a significant boost in the Kenya Kwanza government.
The FY 2024/25 budget represents the second budgeting cycle of the Kenya Kwanza government.
In line with the Administration’s fiscal consolidation strategy, which seeks to reduce government borrowing, and in pursuit of the aspiration to achieve a balanced budget by 2027, the proposed budget consolidates these efforts by reducing the budget deficit by nearly 50%.
This is realized through reduction of the deficit from Ksh1 trillion in FY 2021/22, Ksh925 billion in FY 2023/24 to Ksh597 billion in FY 2024/25.
The budget policy is designed to accelerate the implementation of policies, programs, projects, and interventions outlined in the administration’s Blueprint the Bottom-Up Economic Transformation Agenda (BETA).
The Key highlights of the proposals include the advancement of the realization of economic and social rights, such as; universal health coverage, freedom from hunger, education, clean water, and sanitation.
The budget further positions the economy for export- led growth while allocating additional resources to facilitate production and completion of ongoing infrastructure projects.
Additionally, the Budget honours the government’s commitment to nurture devolution and promote equitable and inclusive development through enhanced allocations to County Governments, which is now at a record Ksh. 400.1 billion.
