CS Kagwe Loses as Uhuru Wins in Treasury CS Ukur Yattani's Budget

  • Treasury CS Ukur Yattani resding the national Budget on June 11, 2020.
    Treasury CS Ukur Yattani reading the national Budget on June 11, 2020.
  • Ministry of Treasury Cabinet Secretary Ukur Yattani presented the 2020/21 budget in Parliament which saw some sectors win while others lost.

    Perhaps the biggest winners were the Education and Interior ministries which had Ksh 497.7 billion and Ksh 167.9 billion allocated to them. 

    "The government continues to make sustained investments in the education sector in order to enhance access to quality basic and higher education. In this budget, I have set aside Ksh497.7 billion to fund programmes in this sector.

    Treasury CS Ukur Yattani (with briefcase) poses for a photo with his docket's officials before reading the Budget 2020/21 in Parliament on Thursday, June 11, 2020
    Treasury CS Ukur Yattani (with briefcase) poses for a photo with his docket's officials before reading the Budget 2020/21 in Parliament on Thursday, June 11, 2020
    File

    "To support security operations in the country, I have proposed Ksh167.9 billion in this budget to our security agencies," read Yattani in Parliament.

    President Uhuru Kenyatta was another big beneficiary of the budget, with Yattani focusing on the Big 4 Agenda and the 8-Point Economic Stimulus Program.

    Cognizant of the ongoing Covid-19 pandemic, many would have expected the Ministry of Health to be handed the lion's share pf the budget, but that was not the case.

    The Ministry of Health was one of the biggest losers in the announcement as it was handed a mere Ksh111.7 billion.

    "The government continues to prioritize healthcare by scaling up the Universal Health Coverage to all the counties. To improve health outcomes, I have proposed an allocation of Ksh111.7 billion to the health sector in this budget.

    Of the Ksh 111.7 billion, Ksh50.3 billion will be used for activities and programmes meant for the attainment of Universal Health Coverage.

    The Ministry of Sports was part of the winners as it was allocated more than double of its amount in the last financial year, when it got Ksh5.3 billion.

    "Sports, culture, tourism, and arts contribute immensely to our economic development by boosting job creation for our youth and generating foreign exchange. To support these sectors, I propose an allocation of Ksh14.0 billion to the Sports Arts and Social Development Fund," stated Yattani.

    Sports, culture, tourism, and arts has been one of the severely affected sectors of the economy due to the Covid-19 pandemic, with numerous job losses witnessed. 

    Tax cheats were other winners in the budget announcement as they were been granted a three-year grace period to disclose correct declarations and pay without facing any penalties.

    Importers of certain commodities will also be cushioned by the budget announcement, as all inputs for the manufacture of baby diapers will be imported duty-free under the East African Community Duty Remission Scheme.

    Inputs for assembly or manufacture of mobile phones will be imported duty-free on the same scheme.

    Kenyans operating online businesses will not welcome the budget announcement, as the government is planning to introduce a 1.15% digital service tax, informed by the growing number of business transactions being carried out online.

    Treasury CS ukur Yattani during his address in Parliament on June 11, 2020.
    Treasury CS ukur Yattani during his address in Parliament on June 11, 2020.