Kenyans set for tough year as Treasury cuts budget by Sh386 bi*lion over Covid-19, locust invasion

By , K24 Digital
On Wed, 29 Apr, 2020 09:31 | 2 mins read
Ukur Yatani
National Treasury Cabinet Secretary Ukur Yatani during the release of Kenya Economic Survey on April 28, 2020. PHOTO | TWITTER
National Treasury Cabinet Secretary Ukur Yatani during the release of Kenya Economic Survey on April 28, 2020. PHOTO | TWITTER

Kenyans are set to endure a tough year as the global pandemic forces government to institute austerity measures that will affect Judiciary, Parliament, Big Four projects and constituencies kitty.

Key government arms are staring at significant budget cuts of up to Sh386 billion in the current financial year linked to the Covid-19 pandemic.

Among austerity measures the government has implemented is the halt of purchase of vehicles this year while the budget for training and procurement of furniture has been halved.

Also hit is the Nairobi Metropolitan Services which has not been allocated any funds because no request was made, according to documents seen by People Daily.

Out of the total Sh2.72 trillion budget, Sh1.8 trillion will be for recurrent expenditure while Sh551.9 billion has been allocated for development.

The deep budget cuts have also been attributed to the locust invasion which devoured vegetation and crops in at least 20 counties, raising concerns about food security.

“These extraordinary happenings include drought witnessed at the beginning of the current financial year, unusually heavy rains during the period between October 2019 to January 2020, invasion of desert locusts in over 20 counties and the emergence of the coronavirus across the world towards the end of December 2019,” Treasury Cabinet Secretary (CS) Ukur Yatani says in the document ahead of the tabling of the Finance Bill in Parliament on Wednesday, April 29.

The National Assembly’s budget has been revised by Sh4 billion from 39.2 billion to Sh35 billion, while the Judiciary has lost Sh1 billion, from Sh19.2 billion to Sh18 billion.

Equally affected will be the Executive, which has lost more than Sh250 billion.

President Uhuru Kenyatta's Big Four agenda has also suffered a downward revision from Sh232 billion down to Sh126.5 billion.

Treasury CS Yatani said the cuts are designed to fill the fiscal deficit inclusive of grants projected at Sh812.5 billion in the 2020/21 financial year.