In the highly anticipated budget statement for the fiscal year 2023/24, Treasury CS Njuguna Ndung'u outlined the resource allocations that will drive the government's ambitious Bottom-Up Economic Transformation Agenda.

With a keen focus on economic turnaround and inclusive growth, the agenda aims to stimulate progress across five key sectors and improve household welfare.

i. Agriculture 

Agricultural Transformation takes centre stage as the government endeavours to achieve food and nutrition security.

Read More

  1. Government is eyeing five Adani-type PPP deals in the current financial year
  2. Kenyan banks commit Sh450 billion to empower local MSMEs over next 3 years
  3. Treasury confirms gradual employment of JSS teachers to begin in January 2024

The budget proposal calls for Sh49.9 billion to be allocated to relevant programs in the agricultural sector, enabling crucial support for this vital industry.

ii. Micro, Small and Medium Enterprise (MSME) Economy

Recognizing the importance of Micro, Small, and Medium Enterprises (MSMEs) in driving economic growth, the budget statement highlights significant commitments to bolster this sector.

CS Ndung'u recommends an additional budget allocation of Sh10 billion to the Hustlers Fund, providing affordable credit to MSMEs, women, and youth.

Furthermore, Sh300 million will be directed towards SMEs in the Manufacturing Sector, with Sh182.8 million earmarked for the Women Enterprise Fund, Sh175 million for the Youth Enterprise Development Fund, and Sh192 million for the UWEZO Fund.

These initiatives are set to empower entrepreneurs, households, and MSMEs, enabling them to contribute significantly to the nation's development.

iii. Housing and Settlement

The Housing and Settlement sector is not overlooked in the proposed budget. A substantial allocation of Sh35.2 billion is recommended for the Housing Programme, with specific allocations of Sh7.3 billion for the Kenya Urban Programme (KenUP), Sh5.0 billion for the Kenya Mortgage Refinance Company, Sh3.2 billion for the construction of affordable housing units, and Sh3.3 billion for the construction of social housing units.

These investments aim to improve access to decent and affordable housing, promoting social stability and economic growth.

iv. Enhancing Quality and Affordable Healthcare

Enhancing the quality and affordability of healthcare remains a top priority. CS Ndung'u proposes a budget allocation of Sh141.2 billion to support various programs aimed at achieving Universal Health Coverage.

This significant investment in the health sector is expected to have a profound impact on the well-being of citizens and the overall healthcare system.

v. Digital Superhighway and Creative Economy

The Information, Communication, and Technology (ICT) sector, which plays a pivotal role in the country's digital transformation, also receives substantial attention.

The proposed budget includes an allocation of Sh15.1 billion to fund initiatives in the ICT sector, with Sh600 million dedicated to Government Shared Services.

Furthermore, to accelerate the development of the Konza Technopolis City, Sh4.8 billion is recommended for the Horizontal Infrastructure Phase I, Sh1.2 billion for the Konza Data Centre and Smart City Facilities, and Sh475 million for the construction of the Konza Complex Phase 1B.

In his address, CS Ndung'u emphasized the government's commitment to restraining borrowing and utilizing projected revenues and grants.

As a result, the total programmed expenditures spending for the FY 2023/24 has been capped at Sh3.68 trillion, highlighting the government's prudent fiscal approach.

These resource allocations reflect the government's determination to drive economic growth, create opportunities, and uplift the welfare of all citizens.

The proposed budget sets the stage for a transformative year ahead, fostering a bottom-up approach that empowers sectors critical to the nation's development and ensures an inclusive and prosperous future for Kenya.