Painful Budget To A Nation Crippled By Coronavirus Pandemic

Treasury Cabinet Secretary Ukur Yatani on Thursday afternoon, June 10, presented a Sh3.6 trillion Budget.

According to Kenyans, the Sh3.6 trillion painful budget was presented to a nation crippled by the coronavirus pandemic which made them even more disappointed and heartbroken.

Below, the budget at a glance:


  • Nicotine porches to attract excise duty of 5 per gram.
  • Equipment for generation of solar exempted from VAT.
  • VAT exemption on food supplements, laboratory reagents.
  • VAT exemption on imports used in the manufacture of ventilators.
  • Digital Service Tax: Income tax expanded to include internet and electronic products.
  • Amendments of custom duty to raise Sh8.7 billion to the exchequer.
  • Masks, sanitizers, ventilators duty-free for the next one year.
  • Imports on vegetable products to attract 30 per cent duty rate for next one year.

Education ministry given Sh202.8b in the 2021/22 budget. Sh12b channeled to free primary education programme, Sh62.2b to free day secondary education.

ICT allocated Sh20.9 billion.

Sports and Arts development received Sh15 billion.

Sh1.7 billion to tourism fund.

Corruption: EACC gets Sh3.3 billion, office of DPP allocated Sh3.2 billion and Sh7.6 billion to DCI.

Parliament allocated Sh37.9 billion, Judiciary Sh17.9 billion.

Counties allocated Sh370 billion.

Security: Sh294 billion for police, defence and NIS

Education: Sh202.8 billion to support education programmes

Infrastructure: Sh182.5 billion to build roads and bridges. Sh1.3 billion set aside for railway metro lines in Nairobi. Sh7.5 billion set aside for Mombasa Port Development.

Government Spending Priorities: Sh23.1 billion for the continuation of the economic stimulus programme, Sh3 billion for youth empowerment, Sh1.97 billion for agriculture and food security, Sh1 billion allocated to KWS for employment of community scouts.

Healthcare allocations: Sh121.1 billion to the Health sectors; Sh47billion to the Universal Health Care, Sh8.7 billion to the Kenya Covid-19 emergency response project, HIV allocated Sh5.8 billion, Sh14.3b for Covid-19 vaccines and Sh450m for cancer equipment.

Recurrent expenditure projection at Sh2 trillion, development expenditure projection at Sh669.6 billion, expenditure projection at Sh3.0 trillion, revenue projection at Sh2.1 trillion.

Insurance: New amendments proposed to regulate the foreign Insurance brokers.

Retirement Benefits: Government institute reforms which include real-time pension services in all Huduma Centres.

Credit to MSMEs: Government allocates an additional Sh2billion to the Credit Guarantee Scheme.

Jobs in healthcare: Government to recruit 5,000 diploma, healthcare workers.

Pending Bills; Ministries, State Departments and County governments directed to clear pending Bills by June 30.

PSVs: 13 motor vehicles assemblers approved so far, government working with investors to fast-track the assembly of passenger vehicles in the country.

Procurement efficiency: State has reviewed procurement policy for ICT equipment to be decentralized in ministries with effect from July, this year.

On improving the business environment, the government is exploring reforms to strengthen public institutions including universities.

Economic Growth: Global economy to grow by 6 per cent in 2021 from 3.3 per cent in 2020. Kenya’s economy expected to grow in 2021 by 6.6 per cent reinforced by a stable macroeconomic environment and favourable weather.

Cabinet Secretary Ukur Yatani pleaded with taxpayers to freely pay their taxes to fund new measures to consolidate the economic gains made since March 2020. The Exchequer has set itself an arduous target of collecting more than a trillion shillings in taxes by the end of June next year.

CS Yatani proposes to reintroduce excise duty on betting at 20 per cent of the stake amount. :Facebook.

Among the major losers in the latest changes are Learning institutions, the Nairobi Metropolitan Service (NMS) and Kenya Electricity Transmission Company.

Public universities have lost Sh17.1 billion while early education and secondary education will have to end the current financial year with a deduction of Sh2.5 billion and Sh1.4 billion less.

Nairobi Metropolitan Service (NMS) on the other hand will lose Sh2 billion in Yatani’s supplementary budget while KETRACO had its budget shrunk by Sh7.3 billion for failure to absorb funds from external lenders.

Meanwhile, Sh7.6 billion was chopped from Marine Transport, Ministry of Energy lost Sh6.5 billion and Yatani’s Treasury ministry lost Sh3.5 billion. This second Supplementary Budget for the Financial Year ending June will see the country’s total spending reduce by Sh8.7 billion.

Among the sectors that have benefited from the budget include: Youths working under the Kazi Mtaani Programme, Ministry of Health, Devolution, Sports, oil wholesalers, State House, Kenya Wildlife Service (KWS) employees and the Teachers Service Commission.

Kazi Mtaani was allocated an additional Sh3 billion in what is aimed at keeping the youths that might have been affected by the Covid-19 pandemic at work but the Treasury has not made allocations funds to Kazi Mtaani for the upcoming Financial Year.

Yatani says finished iron and steel products to be imported at 25pc excise duty to protect local manufacturers from cheaper imports. :Facebook.

Ministry of Health will receive an additional Sh6.5 billion for procurement of vaccines against Covid-19.

Devolution was allocated an additional Sh5 billion, Sports will get an additional Sh4.2 billion, oil wholesalers were allocated Sh1.49 billion, State House will get an additional Sh1.03 billion for operations and maintenance, Kenya Wildlife Service (KWS) employees got an additional Sh1.46 billion in salary increment and the Teachers Service Commission received an additional Sh1.1 billion for the recruitment of more teachers. 

This is the second budget since the beginning of the pandemic and the last full year for President Uhuru Kenyatta which is the most uninspiring with no answers for the current tough times.

Yatani said that the government had set aside Sh27.2bn for construction of SGR Phase II (Nairobi Naivasha) and Sh7.5bn for Lapsset project. :Facebook.

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