Nairobi
Monday, 10 June, 2024
By Felix Mogaka
On Monday, President William Ruto signed into law the Supplementary Appropriation Bill 2024 and the Division of Revenue Bill 2024 at State House, Nairobi.
The new laws unlock resources that will catalyze economic performance and improve service delivery.
The Supplementary Appropriation Bill 2024 and the Division of Revenue Bill 2024, signed into law by President William Ruto, reflect a strategic reduction of Sh132.46 billion in the national budget.
This move, aimed at stimulating economic growth and improving service delivery, marks a 3.3 percent decrease from the initial Sh3.981 trillion to Sh3.848 trillion.
The Supplementary Appropriation Act 2024 authorizes a reallocation of funds, with Sh32.6 billion trimmed from various sectors and Sh102 billion approved for spending from the Consolidated Fund for the fiscal year ending June 30, 2024.
The education sector emerges as a beneficiary, receiving an additional Sh4.468 billion for university education and Sh1.112 billion for secondary education.
Development expenditures have been recalibrated, focusing on priority areas with a Sh75.29 billion cut. However, the government has earmarked Sh51.12 billion for urgent needs.
Additionally, Sh23.67 billion has been regularized under Article 223 of the Constitution for emergency spending, subsequently approved by Parliament.
These funds are directed towards various emergency interventions, including humanitarian support for flood-affected regions, El Niño disaster management, and a fertilizer subsidy program.
“We have not only met the constitutional requirement of 15 per cent, but also increased it to 25 per cent,” President Ruto said.
This increase is expected to boost the provision of services by ensuring that county governments are adequately funded to perform their functions outlined in the Fourth Schedule of the Constitution.
The budget also allocates funds for the emergency rehabilitation of roads and enhances the Kenya Revenue Authority’s capacity to collect revenue and settle pending bills.
President Ruto’s administration has also increased the county allocation by Sh14.69 billion, ensuring that the constitutional requirement of a 15 percent allocation to counties is surpassed, reaching 25 percent.
This budgetary adjustment is a testament to the government’s commitment to prudent fiscal management, prioritizing the nation’s economic resilience and the well-being of its citizens.