On Monday, President William Ruto officially signed into law the Supplementary Appropriations Bill, a legislative instrument designed to navigate Kenya’s challenging fiscal terrain.

The bill, which secured parliamentary approval on July 31, 2024, outlines the government's delicate balancing act between austerity measures and critical expenditure.

Despite the government’s financial constraints, the new law prioritises key sectors of the economy.

Agriculture, a cornerstone of Kenya’s economy, receives a substantial injection of Sh20 billion to bolster production and support farmers.

The education sector is also a focal point, with Sh120.7 billion allocated to support reforms, including the confirmation of all Junior Secondary School teachers.

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To alleviate the burden on students and their families, the Higher Education Loans Board (HELB) is granted Sh31.3 billion.

The health sector, a vital component of any nation's social fabric, is not overlooked.

The Supplementary Appropriations Act earmarks Sh16.2 billion to underwrite reforms aimed at advancing Universal Health Coverage.

In a bid to improve the welfare of security personnel, the government has committed Sh3.5 billion to enhance their remuneration, a move aligned with the recommendations of the National Taskforce on Police Reforms.

However, the fiscal prudence necessitated by the economic climate has compelled the government to implement spending cuts across various government entities.

The total reduction in recurrent and development expenditure for the national government, constitutional commissions, and independent offices amounts to a substantial Sh145.7 billion.

The Executive bears the brunt of these reductions, with its budget slashed by Sh139.81 billion.

Parliament and the Judiciary are also affected, with cuts of Sh3.7 billion and Sh2.1 billion respectively.

State House, the Office of the Deputy President, and the National Treasury have seen their allocations reduced by Sh6 billion and Sh7 billion respectively.

The Ministry of Health and the Ministry of Roads and Transport have also experienced budget cuts of Sh6.9 billion and Sh17.3 billion.