Treasury CS Ukuru Yattani presented the 2020/21 budget in Parliament on Thursday, June 11, with the theme centred around safeguarding the livelihood of Kenyans and recovering the economy which has adversely been affected by the Coronavirus (Covid-19) pandemic.
Yattani focused on the Big 4 Agenda and President Uhuru Kenyatta's 8 Points Economic Stimulus Program. He also proposed a number of taxation including digital service tax to generate income for the country.
Education and Interior Ministries were the highest beneficiaries with Ksh 497.7 billion and Ksh 167.9 billion allocated respectively to the two ministries under CS George Magoha and Fred Matiang'i. Despite the country facing the Coronavirus (Covid-19) pandemic, with a crippled health system, the Health Ministry was awarded a paltry Ksh 111.7 billion.
Below is a chronological flow of events and detailed break down of CS Ukuru Yattani's 2020/21 budget.Treasury CS Ukur Yatani (right) poses for a photo at Treasury Headquarters, Nairobi on Thursday, June 11, 2020, ahead of Budget 2020/21 presentationFile
16:35: Speaker Justin Muturi adjourns house.
16:34: CS Yattani ends his presentation as all MPs and guests asked to leave as there will be no cocktail due to Covi-19 regulations.
16:30: CS Ukur Yatani asks 5-year tax defaulters to disclose and pay the tax due. He waived penalties to those who shall volunteer in 3 years.
16:23: All production items for baby diapers will be imported duty-free to enhance local production of local diapers.
Rental Income tax 10 per cent proposed to be charged for those earning above Ksh 15 million in rent.
Imported duty for electrical material increased from 25% to 35%.
Digital service tax at 1.5 per cent
I propose to exempt maize or corn seeds from tax to make them available to farmers
Road toll introduced. Vendor driven projects: - Motorists are set to pay Ksh 600 per day to use the Nairobi Expressway linking Mombasa road to Westlands once construction is completed in December 2022
16:00: Govt spending priorities 2020/21
Total spending amounts Ksh 2.79 trillion
Big 4 Agenda - Ksh 18.3 billion
Health Sector - Ksh 111.7 billion. Ksh 50.3 billion towards universal health coverage program.
Urban Development and Public Works Sector- Ksh 15.5 billion
Local Industries - Ksh 18.3 billion
Food Security - Ksh 52.8 billion
Towards roads and upgrade in transport, including SGR and ferries and port development - Ksh 172.4 billion
Energy, including electrification and geothermal - Ksh 63.3 billion
Security agencies including, police modernisation, group insurance for NPS - Ksh 167.9 billion
Education sector under CS George Magoha, included CBC and education waivers for and HELB and supporting University students - Ksh 497.7 billion
Elderly program - Ksh 17.6 billion
CDF program - Ksh 41.7 billion
National Youth Service and Youth Empowerment Programs - Ksh 10.2 billion
Information Communication Technology Sector under CS Joe Mucheru - Ksh 14.9 billion
Konza Project - Ksh 6.3 billion
Sports Docket under CS Amina Mohammed - Ksh 14 billion
Environment - Ksh 82.7 billion
Graft- Agencies - Ksh 3.1 billion to EACC and Ksh 3.1 billion to ODPP and Kdh 2 billion. Ksh7.9 billion allocated to the office of the DCI.
Parliament Ksh 33.7 billion and Judiciary Ksh 18 billion.
Nairobi Metropolitan Services under General Mohamed Badi - Ksh 26.4 billion
15:53: Our debt remains sustainable. Debt budget is expected to decline.
15:48: "Ksh172 billion to be lost in 2020/21 through various tax incentives meant to cushion Kenyans from difficult economic times," Yattani.
15:47: "I also propose the removal of some of the existing tax exemptions," Yattani.
15:41: "Treasury is working to clear all pension payments accrued over the years," Yattani.
15:40: "We will not allow the culture of pending bills to continue. All Principal Secretaries directed to clear all pending bills. Treasury will withhold allocations to Ministries, Departments and Agencies that have not cleared pending bills," Yattani.
15:38: "By end December 2020, Govt will set up an E-procurement portal to ensure all processes are done online for accountability and transparency," Yattani.
15:31: Money Allocate to President Uhuru Kenyatta's 8 Point Stimulus Program.
Ksh 600 million to buy Kenya build Kenya.
Ksh 850 million to facilitate pumps and Ksh 450 million for tree planting
Floods - Ksh 1 billion to control floods
Tourism sector - Yattani announced a temporary lifting of bans to hold meetings in hotels by government ministries. Ksh 3 billion and Grants to wildlife services, Ksh 2 billion allocated. The government also waived landing and parking fees at all airports.
Agriculture Ksh 3 billion for farming.
Health Sector under CS Mutahi Kagwe - Ksh 1.2 billion for recruitment of health workers. Ksh 500 million to supply local beds to hospitals and Ksh 25 billion for modern walk through sanitizers.
Small Medium Enterprises - Ksh 3 billion for credit and loans and additional Ksh 10 billion.
Education Sector - Ksh 7.4 billion. The money will include the employment of teachers. Ksh 2.1 billion will go into additional construction of classrooms in secondary schools. Ksh 1.9 billion for provision of at least 250, 000 locally fabricated desks
Ksh 10 billion for Kazi Mtaani, for youth employment.
Rehabilitation of roads - Ksh 5 billion
15:17: "We are targeting a fiscal deficit of 8.3 per cent of GDP in 2020/21," Yattani. A fiscal deficit is a shortfall in a government's income compared with its spending.
15:13: Theme for Budget 2020/21 "Stimulating Economy to Safeguard Livelihood"
15:11: Among support Kenya received for Covid-19 are Kenya Ksh 78.3 Billion from IMF at zero interest rate and Ksh 108 billion from World Bank.
15:07: Yattani recalls measures stipulated by President Uhuru Kenyatta including reduction of VAT. CRB rate was also lowered from 8.25% to 5% due to the Corona Pandemic.
15:06: "Covid-19 has affected business and trade globally and Kenya has not been spared. Curfews and lockdown have affected our livelihood businesses. Floods and locust invasion also affected our economy," Yattani.
15:03: Speaker Justin Muturi welcomes Yattani to make the presentation.
14:42: Yattani arrives at Parliament.
14:30: National Assembly Speaker Justin Muturi arrives in Parliament, poses for a photo with National Assembly Majority Leader Aden Duale and other MPs.
14:26: Yattani prepares steps out of his office for a seven-minute photoshoot with the Treasury briefcase and then leaves for Parliament.
14:00: MPs start arriving at Parliament ahead of Budget reading.
Treasury Cabinet Secretary Ukur Yattani presented the 2020/2021 budget in Parliament on Thursday afternoon, June 11.
The CS read the budget at a time Kenya's economy is facing an economic recession, owing to the Coronavirus (Covid-19) pandemic.
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