Kenya is set to unveil an all-time high budget of Sh3.07 trillion for the 2018/19 financial year to be tabled before Parliament. In the 2017/2018 budget, Kenya spent Sh2.6 trillion.
The government will be forced to borrow an additional Sh562.74 billion to the new budget due to deficit in revenue collection. This will add to current state debt of over Sh4 trillion, which has raised concerns from both locally and international financial experts and institutions such as International Monetary Fund (IMF).
Under the 2018/18 budget estimates, Sh870 billion will go to debt-related payments (interest and redemption payments) alone, while President Kenyatta’s Big Four Agenda of affordable housing, manufacturing, food security and universal healthcare will get Sh1.25 billion.
The Ethics and Anti-corruption Commission (EACC) will receive Sh 75 million for the acquisition of new headquarters and operating expenses.
An additional Sh30 million has be allocated to the state department of Interior for police housing program, while Sh200 million has been set aside for the Office of the deputy inspector general Kenya Police Service’s policing services program.
Sh100 million has been allocated for criminal investigation services while an extra Sh8.7 billion will be used for the repair of the infrastructure destroyed by recent flooding. Sh1 billion has been allocated to the Office of the Auditor General for personnel emoluments, outsourcing of audits and other consultancies bringing its total allocation to Sh6 billion.
State department for Energy has received Sh68 billion budget, with Sh13 billion going towards power generation and Sh53 billion towards power transmission. State department for Irrigation will get Sh17.97 billion while Sh5.56 billion will go to the state department for Agriculture and Research.
Industrialization has been allocated Sh6.91 billion while the National Intelligence Service (NIS) gets SH31 billion.
Others are Sh24 billion towards ICT infrastructure, Sh2 billion to youth training and development, Office of the Director of Public Prosecutions (Sh2.91 billion), Ethics and Anti-Corruption Commission (Sh2.92 billion) and Sh 32 billion to the department for housing, urban, development and public works.
Source: mwakilishi
The good thing about national debt is that ordinary citizens can walk away from it. It’s somewhat an illusion. I say we borrow some more, steal some more, and build Kenya some more.
Singapore has a trillion-dollar debt, we need one too to go from 0 to 100. Then who will pay the debt? I don’t see my American and Bri-iish kins worrying about their trillion-pound debt. Why should I?
Enzi zake Kuna siku i used to drive a beer truck in a classified location very near Nairobi, on a day like this the local tycoons who owned most of the bars in the town would come and buy all the beer in the depot coz its always a surebet that bei ya the frothy drink itapanda.
ata leo itapanda.
Hint of classified location: coffee plantations that are disappearing one by one
Naaah fam, don’t be cliché. Don’t be the kind that works hard to accumulate wealth for future generations.
Neither my kids nor their kids’ kids will pay for our debt because we’ll accumulate it till Armageddon comes.
But if they’ll pay, that’s unavoidable. Do you think the 1886 moms and dads had any say in America’s debt? But their descendants are paying (that is if they’re paying at all, because I’m sure they pay 100 billion, borrow 400 billion, and finance wars to help them rob oil from the gulf).
Nikama tu strike za high school. Mmoja anachoma shule, mnalipa nyote.
Thou shall not stress over the future, live in the moment. :D:D
Tell that to the government that is willing to raise the price of unga to ensure that the body which REALLY promotes corruption in this nation gets a new office. Hapa ni bila lube kapsaa
Usually when using examples, it’s not a good idea to use the US to compare for anything. Simply no comparison. There’s a tonne of reasons why on top of it being the most advanced and dynamic economy almost since inception. I can suggest 2/3 countries almost close or somewhat similar in structure to Kenya and the effect of over reliance on borrowing. Try Greece and Argentina. Maybe even Puerto Rico. They didn’t or haven’t collapsed btw but read about the effect of debt on the citizens.
The debt you refer to on Singapore is not actual debt essentially. Singapore is a major international banking and financial center. Its a hub for numerous major banks. The debt you are reffering to is in fact, deposits kept in Singapore banks by overseas banks and depositors. These huge deposits are counted as debt.
CS Rotich proposes 0.05% tax on cash transfer of more than Sh 500,000 betw financial institutions. A further increase of excise duty on mobile money transfer from 10% to 12%
Same thing, different direction.
You choose to look at the mundane side of the spectrum and I choose the brighter one. I respect your perspective.
But Puerto Rico share’s a president with the U.S. So basically, you’re asking me not to compare Kenya to the U.S, but to a part of the U.S.
hata hio 430 billion from that article bado sio debt. It’s those borrowed investment funds from those foreign accounts just circulating in the market. Singapore operates on a surplus. Wako na sovereign fund ingine mwenda sana. Two sovereign funds, Temasek and GIC:
On top of that Singapore’s balance sheet is so good the govt. gives back money to the citizens:
“All Singaporeans aged 21 and above this year (2018) will receive S$100 to S$300, depending on their income. This will cost the government S$700 million in total.”
I’m not sure what you’re going on about, but their Goverment government just clarified they’re not 1.63 trillion in debt. The actual figure is $438B. So, I’m not sure whether to believe you or their facts.
But I kinda get the point. Their debt is backed with assets. And they borrow to invest not to spend.
Can you imagine Rotich and Thugge telling Kenyans, “this year 2018 we have a surplus and we’d like to reward every Kenyan of 21 years and above with kshs. 7,550 upeleke mpendwa out this weekend.”
Soma hio kizungu vizuri. The 430 billion is money borrowed from banks which in turn was stored there by foreigners. These monies are in turn in form of govt. bonds and securities. kizungu muhimu.