Projects take Sh100bn hit as Covid-19 shatters Yatani budget

The Covid-19 pandemic has taken a toll on government spending, cutting Sh100 billion from the development budget.

Draft estimates for financial year 2020-21 drawn by Treasury CS Ukur Yatani show only Sh584 billion will be provided for development.

This compares lowly to last year’s Sh686 billion, reduced by Sh83 billion in last month’s supplementary estimates.

Yatani has drawn up a Sh1.75 trillion budget of which Sh1.16 trillion has been aside for recurrent spending.

The government’s expenditure and net lending for financial year 2019-20 was Sh2.8 trillion.

It remains unclear how much the Judiciary and Parliament intend to spend as the Budget Policy Statement 2020 put their ceilings at Sh18.05 billion and Sh36.22 billion respectively.

Factoring the Sh904 billion to the Consolidated Fund Services for loans, the total budget is likely to come to about Sh2.7 trillion – albeit with an increase in Executive recurrent spending.

With Covid-19 slowing down economic activities, a number of non-essential projects have been carried forward.

In the current allocations, teachers' salaries have positioned the TSC for the biggest share at Sh264 billion.

Infrastructure projects will take a chunk of the development budget for roads, transport, energy and water sectors.

In the proposed budget, the Water Ministry will get Sh76 billion, Energy (Sh73 billion), ICT (Sh15.7 billion),and broadcasting (Sh5 billion).

The Infrastructure has been allocated Sh186 billion, of which Sh121 billion will be for development.

Interior has been allocated Sh134 billion with the Correctional Services set to receive Sh28.1 billion from the Exchequer next year.

Yatani has further proposed Sh115.5 billion for Defence and Sh39.1 billion for the National Intelligence Service (NIS).

The Presidency has been allocated Sh6.5 billion, of which Sh1.4 billion will be allocated to the Deputy President’s office.

The Attorney General’s office has been allocated Sh4.6 billion; Ethics and Anti-Corruption Commission (Sh3.1 billion) whereas DPP Noordin Haji’s office will get Sh3.08 billion.

IEBC will get Sh4.2 billion; National Lands Commission (Sh1.2 billion); Public Service Commission (Sh2 billion); SRC (Sh459 million) and Budget Controller (Sh622 million).

Yatani has allocated the Ombudsman Sh494 million; Sh429 million to the National Gender and Equality Commission and Sh752 million to Independent Policing Oversight Authority (IPOA).  

Public universities will getSh113 billion while Sh98 billion go basic education and Sh24.9 billion to TVETs.

National Treasury has been allocated Sh96 billion while Sh36.5 billion will go to Planning.

Transport has been allocated Sh49 billion; Maritime (Sh2.5 billion); Public Works (Sh3.5 billion) whereas Housing will be apportioned Sh14 billion.

Sh113 billion has been proposed for the Health ministry while Environment will be apportioned Sh15.8 billion.

Yatani seeks to allocate Sh32.7 billion to the department dealing with pensions and cash transfer for vulnerable persons.

Another Sh5 billion will go to the Labour department, Youth department (Sh13 billion) and Foreign Affairs (Sh15.3 billion).

Sports will receive Sh15.4 billion while Culture and Heritage will get Sh2.6 billion. Wildlife department is tipped to get Sh8.8 billion.

In the Agriculture sector, the Crops department has been allocated Sh40 billion: Livestock (Sh5.2 billion); Fisheries and Aquaculture (Sh7.5 billion); and Sh1.6 billion for Cooperatives department.

Treasury further intends to provide Sh1.7 billion to the Trade department; Sh9.7 billion to Industrialization and Sh8.9 billion to Tourism.

CS Yatani revised this year’s economic growth downwards, saying it was likely to decline to 2.5 per cent, even possibly to 1.8 per cent.

This is against the projection of 6.2 per cent after last year’s 5.4 per cent, signaling that Kenyans should brace themselves for tough times.

Edited by Henry Makori