Treasury Unveils Sh4.1 Trillion Budget in Bid to Bolster Economic Recovery

In a move aimed at propelling Kenya's post-pandemic economic resurgence, the National Treasury has unveiled a Sh4.1 trillion spending plan for the 2024/25 financial year. This marks a significant increase from the current budget of Sh3.3 trillion, underscoring the government's commitment to investing in key sectors and stimulating growth.

"This budget prioritizes economic recovery, job creation, and social protection," Cabinet Secretary for the National Treasury said during a press briefing in Mombasa.

The proposed budget allocates substantial resources to infrastructure development, with Sh1.2 trillion earmarked for roads, bridges, and other critical projects. This investment is expected to improve connectivity, enhance rural development, and attract private sector investment.

Education and healthcare also receive a significant boost, with Sh1 trillion and Sh800 billion allocated respectively. The education sector will see increased funding for early childhood development, technical and vocational training, and higher education. Meanwhile, the healthcare budget will prioritize primary healthcare services, maternal and child health, and access to essential medicines.

To address the rising cost of living, the government has proposed measures to ease the burden on households. These include targeted subsidies for fuel, cooking gas, and other essential commodities. Additionally, the Treasury plans to reduce taxes on essential goods and services, providing some relief to consumers.

Despite the increased spending, the government remains committed to fiscal discipline. The budget targets a budget deficit of Sh700 billion, which will be financed through a combination of domestic and external borrowing. The Treasury also plans to implement austerity measures to control recurrent expenditure and improve efficiency in government spending.

The Sh4.1 trillion budget proposal has been met with mixed reactions. While some economists laud the increased investment in key sectors, others express concerns about the sustainability of the proposed borrowing levels. Civil society organizations have called for greater transparency and accountability in the allocation and utilization of public funds.

The National Assembly is expected to debate and vote on the budget proposal in the coming weeks. The finalization and implementation of the budget will be closely watched as it holds significant implications for Kenya's economic trajectory in the coming year.