BUDGET

Meagre budget share casts doubts on Uhuru's Big Four Agenda

MPs warned that the concept may run into funding difficulties

In Summary

• Sectors linked to Big Four have been allocated measly sums as Health received  Sh82 billion, Manufacturing Sh125 billion, Agriculture Sh55.97 billion, and Housing Sh103 billion.

• Parliament is making decisions on how to spend Sh1.9 trillion, being the total expenditure projected for the Executive, Judiciary, and Parliament.

President Uhuru Kenyatta
President Uhuru Kenyatta
Image: FILE

MPs have cast doubts on whether President Uhuru Kenyatta will attain targets in the Big Four development agenda after its key sectors were allocated just Sh374 billion.

During a debate on the proposed budget estimates for the financial year 2019/20, MPs warned that the concept may run into funding difficulties.

Sectors linked to Big Four have been allocated measly sums as Health received  Sh82 billion, Manufacturing Sh125 billion, Agriculture Sh55.97 billion, and Housing Sh103 billion.

 

This is apart from Sh76.1 billion allocated to the drivers of the Uhuru administration development plan amid fears fresh requests for funds may arise in the course of the year.

Treasury Cabinet Secretary Henry Rotich is expected to address the nation on Thursday next week on the tax measures the ministry would take towards funding the Sh3 trillion budget.

Parliament is making decisions on how to spend Sh1.9 trillion, being the total expenditure projected for the Executive, Judiciary, and Parliament.

The concern by MPs is that the budget has barely addressed issues of pending bills, health funding shortages, revenue collection gaps, and ever-growing public debt.

The other worry is that the country’s budget is largely for recurrent expenses leaving just about 30 per cent for the development of roads, dams, electrification, among other projects.

In the ensuing debate, members have asked the National Treasury to consider reallocating some funds towards Big Four enablers.

Defence and Foreign Relations committee chairman Katoo ole Metito called for more resources to the security sector much as the amounts allocated will suffice for now.

 

He pleaded with the House to agree with the committee proposal saying the sector has been allocated Sh157 billion of which the Defence has taken up Sh121 billion.

“The allocations are below the resource allocation to the two agencies – KDF and NIS, but we believe they will live up to their mandate with the limited resources.”

However, he lamented that the funds allocated to Foreign Affairs is likely to frustrate the efforts to exert Kenya’s influence globally.

“The proposed allocation is Sh18.2 billion against the resource needs of Sh39 billion. This is not even half of the requirement. This gap is huge and may affect the operations of our foreign missions,” Metito said, calling for additional resources in supplementary budgets.

For the East Africa Community ministry, the lawmaker said the EAC remains critical but has been allocated Sh571 million against the need for Sh3 billion.

“The ministry may not participate in key forums where political, and economic decisions are made. The cuts will affect travel which is the core business of the ministry.”

The Kajiado South MP further decried low funding for regional development authorities saying the situation erodes efforts to implement Big Four.

Health committee chairperson Sabina Chege decried the lack of accountability on the conditional grants sent to counties to run referral hospitals.

She said the team would move an amendment to the Public Finance Management Act to compel the National Treasury to ensure the monies are directly paid to the hospitals.

Of concern is that Sh4.3 billion is being shared among 11 counties but without proper criteria on how the allocations are arrived at.

“Does it mean that governors are using the money for other projects that make them popular other than to the health sector,” Chege said further criticising the manner in which the Universal Health Coverage is being implemented.

“We will move an amendment so that we make sure the referral hospitals have enough personnel and specialists to provide quality healthcare.”

She says the Sh4.3 billion that was meant for implementing UHC in the other 43 counties - that were not part of the pilot, be utilised on mental health, spinal injury, vaccines, and blood services.

“We needed reallocation for these gaps to be funded to realise the true implementation of UHC,” Chege said.

Minority leader John Mbadi faulted the government over lack of public participation on key policies that have been rolled by President Uhuru Kenyatta’s administration.

He said that though there are efforts to deal with debt, the deficit remains high saying attempts to close the gap shall remain a mirage if bold steps are not taken to improve revenue collection.

The Suba South MP asked that more resources be sought to realise the Big Four agenda – adding that the lack of public participation has affected the policy.

He also decried the perpetuation of pending bills saying the multiplier effect being triggered by the bills will lead to the slackening of economic growth and development.

“It is becoming the norm that supplementary budgets are geared towards payment of pending bills. There is no justification for the pending bills to accrue to a point where it affects growth,” Mbadi said.

Kitui Central MP Makali Mulu warned that the situation in Kenya where for every Sh100 collected, Sh66 goes towards payment of loans, is not tenable.

“We know that the international indicators are showing that we are still safe, but it's important that we think of how to get out of the debt crisis,” he said.

Parliamentarians also flagged numerous cases of duplication of projects which end up being double-funded therefore creating avenues for corruption.

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