Treasury Secretary Ukur Yatani presents his budget of 3.6 trillion shillings for the year starting July 1 today.
It will announce tougher tax compliance measures and revisions to laws to raise funds to partially fund the budget.
Fiscal year 2021-22 budget is expected to cement the legacy of President Uhuru Kenyatta’s 10-year tenure in a difficult economic environment clouded by depressed corporate and household profits amid uncertainties over the Covid-19 pandemic .
Here are the highlights:
VACCINES: The government is setting aside 14.3 billion shillings for the purchase of Covid-19 vaccines.
PENDING INVOICES: Government departments and agencies have until June 30, 2021 to pay all pending audited invoices to alleviate the cash shortage for small businesses.
PROCUREMENT ICT services to be decentralized as of July 1, 2021, the State services acquiring their own equipment.
MORTGAGE: The Kenya Mortgage Refinance Company will issue an infrastructure bond to provide more money for cheap loans to Kenyans for the purchase of homes.
SME: The government is allocating an additional 2 billion shillings for the credit guarantee program. This will be in addition to the 10 billion shillings allocated in the year 2020/21.
PENSION PLANS: An informal national pension scheme targeting at any time network that will be set up and rolled out in July 2022.
- Economic stimulus program (including street work): 23 billion shillings
- Big Four Agenda – health, food security, affordable housing and manufacturing: 142.1 billion shillings
- SMEs to ease liquidity shortage: 1.9 billion shillings
- Dongo Kundu Special Economic Zone, as well as the industrial parks of Kenanie and Athi River: 8.3 billion shillings
- Nairobi Metropolitan Service: 27.2 billion shillings
- Agriculture and food security: 1.97 billion shillings
- Recruitment of interns in health care: 1.2 billion shillings
- Kenya Wildlife Services to engage community scouts: Sh1 billion
- Construction of SGR Phase II (Nairobi Naivasha): 27.2 billion shillings
- Lapsset project: 7.5 billion shillings
- Free primary education: 12 billion shillings
- Skills-based curriculum: 1 billion shillings
- Hiring of teachers: 2.5 billion shillings
- Teachers’ service commission: 281.7 billion shillings
- Exams: Sh4 billion to cover the exam waiver for KCSE and KCPE candidates.
Finished iron and steel products will be imported at an excise duty of 25 percent to protect local manufacturers from cheaper imports.
Diaper manufacturing: entry duty free for an additional year.
Imports of leather and footwear products – 25 percent
The excise tax on bets will be reintroduced to 20 per cent of the amount of the stake.