Budget 2022/23: Biggest Winners and Losers

  • Treasury Cabinet Secretary Ukur Yatani poses for a photo with the famous budget breif case outside parliament buildings on Thursday, April 7 ,2022..jpg (44
    Treasury Cabinet Secretary Ukur Yatani poses for a photo with the famous budget briefcase outside parliament buildings on Thursday, April 7,2022.
    National Treasury
  • On Thursday, April 7, National Treasury Cabinet Secretary, Ukur Yattani, presented the budget estimates for the Financial Year 2022/2023.

    Yattani's Ksh3.3 trillion budget is the largest in Kenya's history, having grown by Ksh200 billion from the 2021/2022 Financial Year one. The budget saw education, transport, security and devolution sectors given priority.

    Kenyans.co.ke looks at some of the biggest winners and losers in the last budget under President Uhuru Kenyatta.

    Treasury Cabinet Secretary Ukur Yatani
    Treasury Cabinet Secretary Ukur Yatani

    The Education sector received the lion's share after it was allocated Ksh544.4 billion. This accounts for 16.48 per cent of the national budget.

    The money will be used to fund projects such as Free Primary Education and Free Day Secondary Education including National Hospital Insurance Fund (NHIF) insurance cover for secondary school learners.

    Recruitment of teachers, examinations fee waiver for Grade Six, Standard Eight and Form Four candidates, the school feeding programme and training teachers on the Competency-Based Curriculum (CBC) are some of the programmes that will be funded by the half a trillion budget allocated to George Magoha's Ministry.

    County governments came in second with an allocation of Ksh407.1 billion, out of which Ksh370 billion is the equity share and Ksh37.1 conditional allocations.

    The Ministry of Interior under CS Fred Matiang'i was allocated Ksh317.8 billion. This will cover the National Police Service (NPS), National Intelligence Service (NIS) and the provincial administration.

    Closing the Ksh100 billion allocation mark is the Teachers Service Commission (TSC) with Ksh294.7 billion, transport and infrastructure expansion with Ksh212.5 billion and the Big Four Agenda with an allocation of Ksh146.8 billion.

    "I have proposed an allocation of Ksh212.5 billion to support the construction of roads and bridges as well as their rehabilitation and maintenance," Yattani stated in his budget estimates.

    Other gainers include affordable energy (Ksh91. billion), Parliament (Ksh50.2 billion), the Independent Electoral and Bundaries Commission (IEBC) (Ksh21.7 billion), the National Youth Service (Ksh13.1 billion) and the Higher Education Loans Board (Ksh6.8 billion).
    Among the biggest losers include the boda boda and three-wheeler owners and operators, whom CS Yattani proposed must have insurance covers for themselves and their passengers.

    The CS also went hard on the gambling and alcoholic beverages sectors, terming them as hazardous habits.  Yattani introduced a 15 per cent exercise duty on the revenue paid for the running of a gambling or alcoholic drink advert.

    "To discourage the promotion of these products and these activities, I propose 15 per cent exercise duty on fees charged by TV stations, print media, billboards and radio stations for the advertisement of these activities," the CS stated.

    Manufacturers and consumers of liquid nicotine also face higher costs after the government increased the levy imposed on the product to Ksh70 per mililitre.

    Tax defaulters have also been targetted following a proposal to have them deposit 50 per cent of disputed tax revenue pending the hearing and determination of the case filed by the taxman. The money will be deposited in a special account in the Central Bank of Kenya (CBK).

    "In order to protect the disputed tax revenue, I propose to amend the Tax Appeal Review  act to require a deposit of 50 per cent of the disputed tax revenue in a special account at the CBK if the tribunal makes a ruing in favour of the Commissioner General of KRA. The amount will be refunded within 60 days," Yattani explained.

    The iconic briefcase has become the face of Budget Day in Kenya.
    The iconic briefcase has become the face of Budget Day in Kenya.
    The Standard