The 2024 Budget Statement for Kenya, presented by President William Ruto's administration, outlines a total budget of KSh 4.2 trillion for the financial year 2024/2025. This budget aims to balance priorities for sustainable economic growth while addressing fiscal challenges and opportunities.
Key Allocations and Priorities
Education: The education sector receives the highest allocation of KSh 666.46 billion, though this is a slight decrease from the previous year's KSh 689.61 billion.
Energy, Infrastructure, and ICT: This sector is allocated KSh 505.67 billion, an increase from KSh 494.72 billion in the previous year, emphasizing the government's commitment to infrastructure development.
Public Administration and International Relations: This sector, which includes the Office of the President, will receive KSh 351.7 billion, up from KSh 299.33 billion.
National Security: The allocation for national security increases to KSh 244.42 billion from KSh 199.3 billion.
Health: The health sector sees a boost in funding to KSh 147.6 billion from KSh 138.85 billion.
Agriculture: Despite being identified as a key sector, the allocation for agriculture decreases to KSh 87.81 billion from KSh 98.1 billion.
Fiscal Deficit and Financing
The budget anticipates a deficit of KSh 703 billion. To finance this deficit, the government plans to borrow both domestically (KSh 377.7 billion) and externally (KSh 326.1 billion). The external borrowing strategy includes issuing Panda bonds in China, Samurai bonds in Japan, Sukuk bonds in the Middle East, and exploring financing options from the Asian Infrastructure Investment Bank.
Revenue Projections
The government's revenue projections for the next fiscal year stand at KSh 3.44 trillion, which includes ordinary revenue and Appropriations in Aid (AiA). This is an increase from the current fiscal year's projection of KSh 3.07 trillion. The projected revenue is underpinned by reforms in tax policy and revenue administration aimed at broadening the tax base and improving tax compliance.
Economic Strategy
The budget is framed under the theme of sustaining Kenya Kwanza's five pillars through the Bottom-up Economic Transformation Agenda (BETA), focusing on economic recovery and improved livelihoods. The government plans to continue its pro-growth fiscal consolidation plan by restraining expenditure and enhancing revenue mobilization to slow down the growth of public debt without compromising service delivery.
This budget marks the second one prepared under President Ruto's administration and reflects a continued effort to address economic challenges while investing in critical sectors to drive sustainable growth and development.
Key Allocations and Priorities
Education: The education sector receives the highest allocation of KSh 666.46 billion, though this is a slight decrease from the previous year's KSh 689.61 billion.
Energy, Infrastructure, and ICT: This sector is allocated KSh 505.67 billion, an increase from KSh 494.72 billion in the previous year, emphasizing the government's commitment to infrastructure development.
Public Administration and International Relations: This sector, which includes the Office of the President, will receive KSh 351.7 billion, up from KSh 299.33 billion.
National Security: The allocation for national security increases to KSh 244.42 billion from KSh 199.3 billion.
Health: The health sector sees a boost in funding to KSh 147.6 billion from KSh 138.85 billion.
Agriculture: Despite being identified as a key sector, the allocation for agriculture decreases to KSh 87.81 billion from KSh 98.1 billion.
Fiscal Deficit and Financing
The budget anticipates a deficit of KSh 703 billion. To finance this deficit, the government plans to borrow both domestically (KSh 377.7 billion) and externally (KSh 326.1 billion). The external borrowing strategy includes issuing Panda bonds in China, Samurai bonds in Japan, Sukuk bonds in the Middle East, and exploring financing options from the Asian Infrastructure Investment Bank.
Revenue Projections
The government's revenue projections for the next fiscal year stand at KSh 3.44 trillion, which includes ordinary revenue and Appropriations in Aid (AiA). This is an increase from the current fiscal year's projection of KSh 3.07 trillion. The projected revenue is underpinned by reforms in tax policy and revenue administration aimed at broadening the tax base and improving tax compliance.
Economic Strategy
The budget is framed under the theme of sustaining Kenya Kwanza's five pillars through the Bottom-up Economic Transformation Agenda (BETA), focusing on economic recovery and improved livelihoods. The government plans to continue its pro-growth fiscal consolidation plan by restraining expenditure and enhancing revenue mobilization to slow down the growth of public debt without compromising service delivery.
This budget marks the second one prepared under President Ruto's administration and reflects a continued effort to address economic challenges while investing in critical sectors to drive sustainable growth and development.
Download the full Kenya Budget Statement for the Financial Year 2024 here
