Breakdown of All 57 Budget Cuts Amid Mounting Pressure Over Contentious Finance Bill

Treasury Cabinet Secretary Njuguna Ndung'u and his team before presenting the budget at the National Assembly.
Former Treasury Cabinet Secretary Njuguna Ndung'u and his team before presenting the budget at the National Assembly.
Treasury

The National Treasury has proposed about 57 amendments to the proposed budget 2024/2025 after Kenyans took to the streets to oppose the controversial Finance Bill 2024.

In a report tabled to the National Assembly on Thursday, the Treasury Ministry warned of looming budgets should the Members of Parliament reject the Finance bill.

Treasury Cabinet Secretary Njuguna Ndung'u stated that in case the Finance bill fails to sail through then amendments would be made to the Appropriations Bill thus triggering massive budget cuts.

In his report, the Treasury CS proposed the reduction of the State House and the President's allocation by Ksh900 million. The move could also prompt a budget reduction for the Interior and Defence Ministries which would have their budget slashed by Ksh9.7 billion.

MPs in Parliament during the Budget 2024 reading.
MPs in Parliament during the Budget 2024 reading.
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Parliament

According to CS Njuguna Ndung'u, the budget allocation for internal security will be reduced by Ksh2 billion, while the funds earmarked for the modernisation of defence forces will see a cut of Ksh7.7 billion.

The education sector has also been cautioned to prepare for significant budget reductions. Tertiary institutions face a budget decrease of Ksh800 million, with the Higher Education Loans Board allocation being reduced by Ksh3.2 billion.

University infrastructure projects will also be affected, with a Ksh3.0 billion reduction in allocation. Meanwhile, funding for school infrastructure and feeding programmes will see a Ksh6.4 billion decrease.

The government has further indicated that the budgetary allocation for roads and market construction projects will be slashed by Ksh6.4 billion, while water and irrigation projects are expected to face a deficit of Ksh16 billion.

Additionally, the Treasury has proposed slashing Ksh30 billion from allocations intended for Information Communication and Technology (ICT) and sports programmes.

CS Njuguna Ndung'u has also proposed reduced allocations: Ksh3.7 billion for medical interns, Ksh1 billion for the Civil Servants Insurance Scheme, and Ksh15 billion for the National Government Constituency Development Fund (NG-CDF).

Changes in budgetary allocations for the agricultural sector were also suggested, including a reduction of Ksh1 billion for cattle restocking, a Ksh5 billion cut in fertilizer subsidy allocation, and Ksh1.7 billion less for payment of arrears to farmers.

Meanwhile, the Coffee Cherry Fund is set to see a reduction of Ksh1 billion, while County Aggregation Industrial Parks will receive Ksh1.6 billion less in allocations.

Anti-graft agencies, including the Anti-Corruption Commission and the Office of the Director of Public Prosecutions, are also slated to receive Ksh395 million less in budget allocations.

President William Ruto (right) and former Treasury CS Njuguna Ndung'u in April 2021.
President William Ruto (right) and former Treasury CS Njuguna Ndung'u in April 2021.
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Kenyans.co.ke