•This is against the projected ordinary revenue of Sh2.14 trillion. It represents 43.45 per cent of the ordinary revenue.
•However, the allocation has marginally decreased compared with the current financial year when Sh1.177 trillion was dedicated to servicing the debts.
Almost half of the revenues projected to be collected by the Kenya Revenue Authority will go towards the repayments of public debts in 2022-23, underscoring the country’s debt crisis.
According to the proposed draft Division of Revenue Bill, 2022, the National Treasury has allocated Sh930.35 billion to repay debt.
This is against the projected ordinary revenue of Sh2.14 trillion. It represents 43.45 per cent of the ordinary revenue.
However, the allocation has marginally decreased compared with the current financial year when Sh1.177 trillion was dedicated to servicing the debts.
“The bill has fully provided for all public debt-related costs,” Yatani said in the Bill tabled in the Senate on Wednesday by deputy majority leader Fatuma Dullo.
“These comprise of the annual debt redemption cost and interest payments for both domestic and external debt,” the Bill adds.
The country’ public debt is hitting Sh8 trillion.
The draft Bill by Treasury CS Ukur Yatani divides revenues collected by KRA between the national and county governments.
Both the Senate and National Assembly shall consider the Bill.
Should Parliament approve the Bill, the allocation for debt servicing will be the biggest consumer of the ordinary revenue.
Mandatory pension obligations, financing for constitutional offices including parliament and other statutory obligations are the second consumer of revenues at Sh548.8 billion up from Sh514 billion.
According to the bill, Parliament has been allocated Sh38.47 billion up from Sh37.88 billion it got in the current fiscal year.
Pensions and salaries for public officials will get Sh145.95 billion compared to Sh136.97 billion allocated in the current financial year.
Constitutional commissions will get Sh321.96 billion compared to the current allocation of Sh299.33 billion.
Judiciary’s allocation has marginally increased from Sh17.91 billion to Sh18.29 billion.
If the Bill is approved, county governments will get Sh375.65 billion – including an equitable share of Sh370 billion and a conditional grant of Sh5.65 billion.
Edited by Kiilu Damaris