By Peter Ochieng
President William Ruto on Monday assented to two Bills.
The Supplementary Appropriation Bill, and the Division of Revenue Bills are now law. The former will allow for the release of funds for government expenditure, for the financial year that is ending June 30.
Last week, the National Assembly passed the Supplementary Appropriation Bill, 2024.
“Honourable Speaker, a lot has changed when it comes to our interest rates. Therefore, we have had to revise our Cash Flow Statements (CFS) to reflect the current Dynamics in the interest rate market and the exchange rate Market for our financial obligations both domestically and externally,” declared Ndindi Nyoro, the chairman of the budget committee in the National Assembly.
“Generally speaking, in creating this Supplementary II, we are channeling funds to where the Kenyans are. That is why we have targeted agriculture through fertilizer allocation as well as giving money to the education sector, and the Security sector which is the core of any Government administration,” he added.
With President Ruto assent, the law now mandates the National Treasury to authorize the issuance of Sh102,305,909,030 out of the Consolidated Fund, and apply it towards various government departments.
The overall budget has however been reduced by 3.3percent (Sh132.46 billion) from Sh3,981.53 billion that was approved in the supplementary one estimates of 2023/24 FY to Sh3,848.07 billion. Recurrent expenditure has increased on the recurrent budget by Sh51.12 billion which negates efforts by President Ruto’s administration to reduce the huge wage bill.
Development spending has been redirected to priority areas and reduced by Sh75.29 billion, primarily due to the rationalization of donor-funded programs. Consequently, the Bill has reduced the supply by Sh32,596,382,875 to various votes.
During the Supplementary Budget II 2023/24, great focus was put on the heavy El Nino rains experienced in the past three months. The State Department for Arid and Semi-Arid Areas and Regional Development for humanitarian purposes will receive Sh4.3 billion to support those affected by floods.