President William Ruto’s government has proposed the allocation of Sh69.7 billion to the Ministry of Energy to scale up the production of reliable and affordable energy.
In the budget estimates read on Thursday by Treasury CS Njuguna Ndungu, the government wants to spend Sh27.8 billion in the 2024-25 financial year on the national grid system.
A further Sh24 billion will go into the rural electrification programme while Sh14 billion will cater to geothermal energy development.
Ndungu said a further Sh2.2 billion will be for alternative energy technologies and 920 million will cater for the development of Nuclear energy
In the previous financial year of 2023-24, the government had allocated Sh62.3 billion to the Ministry of Energy to support the production of affordable and reliable energy.
The government spend Sh33.8 billion in the 2023-24 financial year on the national grid system. A further Sh12.1 billion was on the rural electrification programme while Sh11.4 billion catered for geothermal energy development.
Further Sh3.2 billion was allocated for alternative energy technologies.
As compared to last year's budget the energy sector received an additional Sh7. 4 billion and also the introduction of nuclear power funding.
This year’s budget is the highest ever in the country’s history and the second since President William Ruto came to power.
The National Treasury has proposed a myriad of ways of achieving its revenue targets to finance the Sh3.92 trillion budget including introducing new taxes in the Finance Bill, 2024.
Out of the total budget, the government wants to use Sh1.58 trillion for recurrent expenditure, Sh727.9 billion for development expenditure, Sh1.21 trillion for consolidated fund services and Sh400 billion as an equitable share for counties.