• New estimates represent a 4.2 per cent drop from last year’s budget.
• Treasury CS Henry Rotich will read budget in National Assembly on June 13.
The Budget committee has approved the 2019-2020 estimates after reaching a compromise deal with Treasury in crucial talks held on Tuesday.
The approval of the estimates is a big win for Treasury CS Henry Rotich who has set June 13 as the day he will formally unveil the budget.
Rotich and Treasury PS Kamau Thugge were on Tuesday locked in marathon talks with the committee in Parliament in last ditch efforts to strike a deal on the estimates.
The pact involved allocations and reallocations in far-reaching budget adjustments that saw some ministries and departments sacrificed to balance off the figures.
Rotich finally walked away with Sh78 billion more than what was contained in the Budget Policy Statement.
The higher expenditure was accommodated by upward revenue projection of Sh35 billion, bringing the total projected revenue to Sh2.1 trillion.
The powerful committee chaired by Kikuyu MP Kimani Ichung'wa is set to table its report in the National Assembly for concurrence from the 349-member House this afternoon.
This will then set the stage for Rotich to formally unveil the national budget for the next financial year next Thursday.
In its report, the committee says the drastic budget adjustments made were necessary by the country's dark economic prospects.
The Budget and Appropriations committee says the erratic weather conditions are likely to take a toll on the country with poor performance in agriculture.
The economic situation will likely be worsened by delayed completion of infrastructure projects that should spur economic growth, the committee warns.
According to the estimates approved by the committee, the total budget for Parliament, the Executive and the Judiciary is estimated at Sh3.02 trillion.
This represents a 4.2 per cent reduction from last year’s budget.
Of this, the national government has been proposed to get Sh1.84 trillion, county governments (Sh371.6 billion), Parliament (Sh43 billion) whereas the Judiciary is tipped to get Sh18.8 billion.
The Equalisation Fund will get Sh5.8 billion while Sh805.8 billion will go to the Consolidated Fund.
Parliament’s budget will be shared by the Senate (Sh16 billion) and the National Assembly (Sh23.6 billion) – both Houses suffering cuts of Sh2.85 billion in their proposal to buy vehicles.
The lawmakers further cast doubts on whether the country will achieve its revenue projections of Sh1.877 trillion.
Revenue targets are frustrated by worsening trade balance impacting negatively on foreign exchange reserves, low credit to SMEs and unchecked borrowing by government piling up the national debt to Sh5.5 trillion.
“Our concern is that the actual budget implementation may adjust expenditure upwards as history has shown a government tendency to fail to adhere to expenditure plans, particularly recurrent estimates,” the report says.
Education has taken the lion's share of the budget at Sh492 billion of which Sh240 billion is proposed to be shared by universities (Sh113 billion), early leaning and basic education (Sh96 billion) and vocational training (Sh31 billion).
Some Sh252 billion is proposed for the Teachers Service Commission, part of which is an increase of Sh1.2 billion for hiring of 3,000 more teachers to address staffing gaps in primary schools.
The Infrastructure department followed closely with Sh186 billion spending cap, being Sh93 billion for roads, rail transport (Sh63.1 billion), marine (Sh19.9) and air transport (Sh9.9 billion).
The Maritime department has been apportioned Sh2.3 billion amid concerted efforts to have the Kenya National Shipping Line (KNSL) domiciled at the department.
Interior ministry headed by CS Fred Matiang’I will do with Sh139 billion, a chunk of which will be for police (Sh100 billion), policy coordination (Sh28 billion), NTSA (Sh2.49 billion) and Sh7.2 billion for population management – ostensibly for Huduma Namba.
MPs have also backed the National Treasury’s proposal to cap Defence spending at Sh121 billion, of which Sh1.4 billion will be expended on administrative services.
Health, which is a core pillar of the Big Four agenda, has been proposed to get Sh92 billion.
Out of this, Sh36 billion will cater for the national referral hospitals and Sh27 billion for regulations and enforcement of standards.
Some Sh37.6 billion has been proposed for the National Intelligence Service whereas the Presidency is proposed for Sh11.3 billion of which Sh4.8 billion will cater to operations at Deputy President William Ruto’s office.
Also part of this is Sh3.4 billion for management of Cabinet affairs by President Uhuru Kenyatta’s office whereas Sh910 million will be spent on running State House and Sh2.1 billion in advisory services.
The National Treasury ceiling has been set at Sh115 billion while their Planning counterparts are proposed to expend Sh55 billion.
Prisons will get Sh27 billion for correctional services in the face of the squalor and dilapidation that characterize the department's facilities.
Pushed by the need to expand Kenya’s presence in 151 states, the Foreign Affairs ministry has been allocated Sh19.2 billion of which Sh15 billion has been proposed to be spent on diplomacy.
Plagued by a water crisis, the government intends to spend Sh62 billion at the Water ministry towards expansion of sewerage infrastructure (Sh42 billion), flood control (Sh10 billion) and management of water reservoirs (Sh8 billion).
Lands ministry, on the other hand, is due to get Sh6.6 billion while its ICT counterpart is proposed to get Sh28.2 billion.
Another big spender in the proposed estimates is the Energy ministry at Sh77 billion, mony intended for power generation (Sh11 billion), transmission (Sh64 billion) and Sh875 million to bolster growth of alternative energy.
The State Law Office has been proposed to get Sh5.3 billion; the IEBC Sh4.8 billion for management of elections (Sh4.3 billion) and Sh533 million for delimitation of boundaries.
Auditor General Edward Ouko’s office has its budget capped at Sh5.7 billion, EACC (Sh2.9 billion), DPP (Sh2.9 billion) and the Registrar of Political Parties (Sh1.29 billion).
In a bid to have all elderly persons included in the government social protection programme, the Budget committee approved allocations of Sh34 billion to the drive, inclusive of children's services.
The Public Service Commission is proposed to get Sh2.2 billion, National Land Commission (Sh1.3 billion), Salaries and Remuneration Commission (Sh545 million), Commission on Revenue Allocation (Sh469 million), National Police Service Commission (Sh736 million), Judicial Service Commission (Sh565 million), KNCHR (Sh384 million) and the Witness Protection Agency (Sh481.6 million).
Other independent agencies, namely Commission on Administrative Justice, National Gender and Equality Commission and IPOA have their budget ceilings set at Sh565 million, Sh492 million and Sh892 million respectively.
Immigration department gained an additional Sh300 million to bolster the ongoing digitization of records, pushing its spending to Sh3.5 billion.
The Devolution ministry will be allocated Sh8.3 billion whereas another Sh4.9 billion would go towards development of ASAL areas.
Uhuru’s housing plan - also a critical item in the Big Four plan - will get Sh31.5 billion of which Sh13 billion will be set aside for construction of houses, Sh17 billion for urban development and Sh1.7 billion for government buildings.
The Ichung’wa team has proposed that Sh17 billion be allocated to the Forestry ministry and national tree planting devolved.
State departments for Livestock will get Sh6.9 billion; Fisheries (Sh3.9 billion), Crop Development (Sh22.1 billion), Irrigation (Sh9.4 billion), Agricultural research (Sh6.3 billion), Cooperatives (Sh4.5 billion), Trade (Sh2.1 billion), Labour (Sh6.2 billion), Industrialisation (Sh9.2 billion), Mining (Sh1.2 billion), Petroleum (Sh5.7 billion), Wildlife (Sh9.1 billion) and Public Service (Sh9.9 billion).
The committee further approved Sh17 billion spending for Youth empowerment whereas the Gender department was proposed to get Sh4.3 billion for related activities.
The EAC and Northern Corridor departments will be apportioned, if the estimates are approved by the National Assembly, Sh671 million and Sh5.3 billion respectively.