Nairobi, Kenya – In a historic move, the Kenyan Parliament has approved the budget estimates for the Financial Year 2023/24, paving the way for President William Ruto’s highly anticipated budget announcement. Since assuming office last year, this will be President Ruto’s first budget, carrying significant weight as the nation grapples with mounting debt repayments.
The proposed budget for the upcoming fiscal year is set to reach a staggering Sh3.679 trillion (approximately 24 billion euros), making it the largest in Kenya’s history. However, this hefty figure takes into account redemptions and appropriations-in-aid, which shed light on the growing burden of debt repayments.
Key allocations within the budget include Sh2.1 trillion for the Executive, Sh40 billion for Parliament and Sh22.9 billion for the Judiciary and the Judicial Service Commission (JSC). These distributions reflect the government’s priorities and objectives for the coming year.
To finance the ambitious budget, the government has introduced a range of new taxes, encompassing various sectors such as imported fish, beauty products, and gambling. These tax measures are projected to generate approximately 2 billion euros in revenue, aiming to alleviate the financial strain.
Additionally, the government aims to implement a contentious payroll levy to fund a low-cost housing program. Originally proposed at 3%, the levy has been reduced to 1.5% in response to public concerns. Finance Minister Njunguna Ndung’u defended the decision, stating on national TV, “We have to make sacrifices in the short term to succeed in the long term. We have to sacrifice for the future.”
Critics argue that this budget exacerbates the growing frustration with President William Ruto, particularly regarding the rising cost of living. Since his election in August 2022 as the champion of the “resourceful” ordinary citizens, President Ruto has faced mounting criticism for allegedly being unable to curb the inflationary pressures that have plagued Kenya for months. Furthermore, his removal of subsidies on fuel and maize flour has been accused of exacerbating the situation.
During the budget presentation, members of parliament from the opposition coalition Azimio staged a walkout to express their disagreement with the proposed budget and the voting timeline. This act of dissent highlights the deep divisions and conflicting opinions within the political landscape.
Kenya’s public debt currently stands at $65 billion, equivalent to approximately 67% of the country’s gross domestic product (GDP). The burden of repayment is becoming increasingly onerous as the Kenyan shilling continues to depreciate, exacerbating the financial challenges faced by the government.
As the nation braces itself for President Ruto’s inaugural budget address, all eyes remain fixed on the proposed allocations, tax measures, and their potential impact on the economy and the lives of Kenyan citizens.
