Treasury Cabinet Secretary Njuguna Ndung’u presents the 2024/25 Budget in Parliament on June 13, 2024. Image: NATIONAL TREASURY
In Summary:
- National Security: Ksh377 billion allocated to the National Police Service, Kenya Defence Forces, and National Intelligence Service.
- County Governments: Historic Ksh400.1 billion as equitable share for counties.
- Significant Funds: Allocations for education, healthcare, agriculture, and infrastructure.
On Thursday, June 13, National Treasury Cabinet Secretary Njuguna Ndung’u presented the 2024/2025 budget statement to the National Assembly, unveiling the government’s Ksh4 trillion budget for the upcoming fiscal year.
During his comprehensive address, CS Ndung’u outlined key allocations across crucial sectors.
A significant Ksh377 billion was allocated to National Security agencies including the National Police Service, Kenya Defence Forces, and National Intelligence Service, highlighting the administration’s commitment to bolstering security nationwide.
In an unprecedented move, county governments will receive Ksh400.1 billion as their equitable share, the highest allocation in 12 years.
“This substantial increase will empower counties to better serve their constituents,” CS Ndung’u remarked.
Anti-corruption efforts received a boost with Ksh4.2 billion proposed for the Ethics and Anti-Corruption Commission (EACC) and the Office of the Director of Public Prosecutions.
The State Law Office and Office of the Auditor General were allocated Ksh6.9 billion and Ksh8.7 billion respectively to strengthen legal and oversight functions.
The education sector took center stage with Ksh656.6 billion allocated, including Ksh30 billion for junior secondary school interns, Ksh36 billion for the Higher Education Loans Board (HELB), and Ksh3 billion for the school feeding program.
“Investing in our youth is investing in our future,” stated the CS.
To drive food security, Ksh54 billion was earmarked for agriculture, with Ksh10 billion for fertilizer subsidies and Ksh6 billion for agricultural value chains.
The healthcare sector received Ksh127 billion to support universal healthcare goals, including Ksh2 billion for free maternity services.
Additionally, Ksh36.6 billion was allocated for water and sewerage infrastructure.
Efforts to promote tourism, sports, culture, and recreation will receive Ksh23.7 billion to foster growth in these vital sectors.
Small businesses and youth entrepreneurship were prioritized with an additional Ksh5 billion for the Hustlers Fund and Ksh200 million for the Youth Enterprise Development Fund.
Substantial investments were made in infrastructure development, with Ksh193.4 billion for road networks, Ksh25.2 billion for railway expansion, Ksh200 million for Lake Victoria ferries, and Ksh69.7 billion for the energy sub-sector.
CS Ndung’u emphasized the government’s intent to broaden the tax base and reduce tax expenditure from the current 2.9% of GDP to create a more robust and equitable tax system.
“The government intends to create an elaborate tax system by expanding the tax base and reducing tax expenditure,” he disclosed, signaling a comprehensive approach to fiscal management.
With these comprehensive allocations, the 2024/2025 budget aims to spur sustainable economic growth, improve service delivery, and enhance the lives of all Kenyans.