Finance Cabinet secretary Ukur Yattani has set aside sh 323 million to insure the ferries in Likoni while Mombasa port is set to receive five billion shillings in a proposed 2020/2021 economic budget proposed by the treasury
Speaking at parliamentary buildings during budget day Yattan said that the five billion shillings are meant to upscale projects at the port as the LAPSSET project too is set to be allocated six billion shillings.
There is also a ray of hope for the standard gauge railway project as it is supposed to be allocated 18.1 billion shillings.
“I have set aside Ksh 18.1 billion for SGR Phase II (Nairobi- Naivasha); Ksh 6.0 billion for the LAPSSET Project; Ksh 5.0 billion for the Mombasa Port
Development Project and Ksh 328 million for insurance of ferries for the Likoni channel.”Said Yattani
He noted that 2020/2021 total expenditures in the financial year 2020/21 are projected at Ksh 2.79 trillion or 24.7 percent of GDP from the estimated level of Ksh 2.77 trillion or 27.2 percent of GDP in 2019/20.
The recurrent expenditures in the financial year FY 2020/21 will amount to Ksh 1.82 trillion or 16.2 percent of
On the other hand, ministerial development expenditures that include foreign-financed projects,
allocation to contingencies fund and conditional capital transfers to the County Governments are projected at sh 633.1 billion in 2020/21. T,the CS pointed.
In terms of Value-added exemption, maize farmers and ambulance services will undergo exemption to cushion Kenyans from the high cost of products and services in the agricultural and health sectors.
“Food security is one of the pillars of the “Big Four” Agenda and the Government has put measures to support its implementation including food production. To further this Agenda, I propose to exempt maize or corn seeds from the Value Added Tax (VAT), in order to make them affordable to farmers. “Yattan said
“Further, I have proposed to exempt ambulance services from VAT in addition to medical, nursing and dental services which are currently exempt from VAT to cushion Kenyans from the high costs of such ” He added
He further cautioned, national government departments and county governments to clear their pending bills which will be a leeway to get the allocation of their respective funds in the anticipated 2020/2021 budget.
“We have noted that several State Corporations and Semi-Autonomous Government Agencies (SAGAs) hold significant amounts of pending bills owed to contractors, suppliers, SACCO
remittances, and other statutory deductions. This practice should not be allowed to continue.”Yattan said
In terms of allocation of funds, the CS said that the big four agendas will be allocated sh. 128 billion, the ministry of health will receive sh. 111.7 billion, the ministry of education will receive sh. 497 billion and security docket will be allocated sh. 167 billion.
Sports, culture, tourism, and arts which contribute economic development by boosting job creation for youth and generating foreign exchange will get an allocation of Ksh 14.0 billion to the Sports, Arts and
Social Development Fund sh 2.5 billion for the Tourism Promotion Fund (TPF) and sh. 3.8 billion for the Tourism Fund
“The budget for FY 2020/21 will continue with the implementation of the “Big Four” Agenda.
Thus, the targeted expenditures prioritize employment creation, youth empowerment, supporting manufacturing activities, enhancing health coverage, improving food security, and living conditions through affordable housing. To support these initiatives, I have set aside sh. 128.3 billion for the “Big Four” Agenda drivers and enablers.”Yattan said
He pointed out that the government has employed mechanisms of Economic Stimulus
Program to cushion vulnerable citizens and businesses, particularly those affected by the COVID-19 Pandemic.
The Stimulus Programme will focus on keeping the food supply chains functional while promoting the use of locally produced goods and services, thus securing the livelihoods of daily wage earners.
Consequently, the treasury has set aside sh. 56.6 billion to cater for the various thematic areas of the said Programme.