The Kenya’s 1.4 Trillion Shilling Budget

Categorized | News

Kenya’s 1.4 Trillion Shilling Budget

Posted by | Posted on 20 June 2012

By Dennis Lubanga

Will this budget help ordinary Kenyans?

Kenya’s Finance Minister Robinson Njeru Githae yesterday in Parliament delivered the 2012/2013 national budget a few months after he took over the docket from Deputy Prime Minister Uhuru Kenyatta.
In the budget that was read out to the nation yesterday 14th May afternoon, it was noted that, Kenya’s 2012 economic growth forecast stands at 5.2 per cent as allocations to infrastructure was raised to meet the country’s economic blueprint of Vision 2030.
The country is struggling to shoulder its weakening economy reflecting the high economic upheaval. The country is also up in arms to maintain its territorial integrity and security challenges from neighboring Al-Shabaab infested state of Somalia which is a contributing factor of the huge budget in Kenya’s history.
Githae said the economic prospects for 2012 are favorable, but risks still remain. Real GDP is expected to grow by 5.2 percent in 2012. Over the medium term, growth is expected to pick up to about 6.0 percent.

The Ndia MP stated that the economic growth would be generated by expansion of key national economic sectors that is, agriculture, tourism, construction, transport and communications and also in the ICT sector. The economy tremendously grew by 4.4 percent last year, down from 5.8 percent in the previous year, a move that is seen to have been brought about by the investor confidence.
The Sh1.5 trillion ($17.7 billion) budget is the highest in the country’s history compared to the previous Sh1.2 trillion of the year ending at June 31st. Analysts argue that the government is preparing itself for a massive devolution which comes hand in hand with the elections to be held in March 2013.
However, Kenya will increase its GDP by 72 percent to 106.7 billion shillings next year and also raise sh143.6 billion shillings from external sources. Githae said Revenue is forecast to increase 19 percent, helping to finance rising spending.
Many Kenyans have praised the budget terming it as, “Budget ya Masufferer”(budget for the hopeless). And they hope it will meet all the needs of Kenyans as the country warms up to welcome the County governments after the next elections.

 

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