Kenya Budget 2018/2019 summary and full pdf statement (Henry Rotich speech)

Kenya’s Budget for 2018/2019 financial year summary speech was read in parliament by National Treasury CS Henry Rotich on 14 June 2018. Full pdf of the same is available for download in this page. The Kenya Budget 2018/2019 is focused on fulfilling President Uhuru Kenyatta’s big four agenda that we will highlight bellow.

Kenya Budget for Financial year 2018 2019, summary and full pdf statement of Henry Rotich speech in parliament
Kenya Budget for Financial year 2018 2019, summary and full pdf statement of Henry Rotich speech in parliament/Photo

Tax Duty in 2018 Budget

Tax increase and exemptions 2018

  • 35% tax on steel and iron products
  • 35% tax on some paper and paper board produced in the region
  • 35% tax on textiles and footwear as well as second hand clothing and footwear
  • 35% tax on particle board, on medium density fiber board, on plywood and on block boards
  • 35% vegetable oil import tax
  • 12% excise duty fees charged on money transfer services by cellular phone service providers
  • Exempted tax one equipment used in post-harvest storage
  • Exempted tax in raw materials used in making animal feeds from
  • Exempted tax on parts imported or purchased locally for assembly of computers/laptops from VAT
  • Excise duty tax of 30% on private passenger motor vehicles whose engine capacity exceeds 2500cc for diesel and 3000cc for petrol powered vehicles
  • 0.05 Robin Hood Tax on any amounts of five hundred thousand shillings or more transferred through banks and other financial institutions

Summary of Kenya Budget 2018/2019 (2.5 Trillion)

This is the first budget under president Uhuru Kenyatta’s regime in his second term since he was elected and the 6th Budget under the Jubilee government since 2013. It is geared towards achieving the Big Four Agenda which include;

  • Improving Manufacturing
  • Improving Food Security
  • Universal Health Coverage
  • Affordable housing


Theme of 2018 Budget: Creating jobs, transforming lives and driving prosperity

Kenya Budget 2018/2019 allocations expectations

 NOTE! This post was updated accordingly after delivery of CS Rotich’s budget statement in parliament on 14th June 2018. Below is a summary of it. Sections which are missing allocation will be updated.

Agriculture sector 2018/2019 Budget allocations

  • Irrigation projects (Bura and Mwea, National Expanded Irrigation Programme and Smallholder Irrigation Programme, Galana Kulalu, Turkana and micro irrigation in school): Ksh. 8.5 billion
  • crop and livestock insurance schemes: 300 million
  • subsidize fertilizer: 4.3 billion
  • strategic grain reserves: Ksh. 1.5 billion
  • lands delivery and Issuance of Title Deeds
  • Army worm mitigation: 300 Million
  • Kenya cereals enhancement: 1.9 billion
  • Mechanization of agriculture: Ksh 0.5 billion
  • Crop diversification: 0.9 billion

Under ministry of agriculture

Power/Energy Project 2018 Budget

  • rural electrification and connection of public facilities: 5.9 billion
  • Last Mile Connectivity: 6.7 billion
  • the national street lightning programme: 1 billion
  • Eastern Electricity Highway Project (Ethiopia – Kenya Interconnector): 5.5 billion
  • substation installation: 1 billion
  • installation of transformers in constituencies: 1 billion
  • Connectivity Subsidy: 1 billion
  • Loiyangalani – Suswa transmission line, land compensation and counterpart funding: 12.6 billion
  • Nairobi 220KV Ring: 3.1 billion

Construction Projects 2018 Budget allocations

  • Building Roads: 115.9 billion
  • Standard Gauge Railway (SGR) Phase 2 (two): 74.7 billion
  • Airports in Malindi, Isiolo and Lokichogio: 1.4 billion
  • Mombasa port Development project: 2.7 billion

Employment and jobs financial year 2018/2019 budget allocations

  • SRC
  • Teachers
  • Modernization of Industries to create more jobs

Devolution Kenya Budget 2018/2019 allocations

  • County Government sharable revenue: 314 billion
  • County government conditional allocations: 62 billion

Under ministry of devolution

2018/2019 budget allocations for Government Institution

  • Judiciary: 15.2 billion
  • Parliament: Ksh 36.8
  • Ethics and Anti Corruption Commission  (EACC): 2.9 billion
  • Department of Public Prosecutions (DPP): 2.9 billion
  • Criminal Investigations Services:  6.4 billion
  • Office of the Attorney General: 5.1 billion
  • Financial Reporting Centre: 587 million
  • Assets Recovery Agency: 161 million

National Security Kenya Budget 2018/2019 allocations

  • Leasing of police vehicles: 9.2 million
  • police and prison officers medical insurance scheme: 6.5 billion
  • enhanced security operations: Ksh 8.9 billion
  • police and military modernization: Ksh 29.8 billion
  • securitizing our borders: Ksh 3.0 billion

Under ministry of internal security

 Social Welfare Kenya Budget 2018 allocations

  • persons with severe disability: 1.2 billion
  • Orphans and vulnerable children: 7.9 billion
  • Cash Transfers Elderly persons: 17.3 billion
  • Children Welfare Society: 1.2 billion
  • Presidential Secondary School Bursary Scheme: 400 million
  • Kenya Hunger Safety Net Programme: 4.5 billion
  • Equalization Fund: 8.5 billion
  • Affirmative Action Fund to promote equity and for social development: 2.3 billion

Youth and women Kenya Budget 2018/2019 allocations

  • National Youth Service (NYS), youth empowerment programme and Women Enterprise Fund have been consolidated (NOTHING!!).

Under ministry of Public Service, Youth and Gender Affairs

Cabinet Secretary of Ministry of National Treasury, Henry Rotich in parliament
Cabinet Secretary of Ministry of National Treasury, Henry Rotich during the Budget day/Photo


Health Care allocations (universal Health Coverage)

  • Free Maternal Healthcare programme and and leasing of medical equipment: Ksh. 13.7 billion
  • Doctors/Clinical Officers/Nurses internship programme: 2.9 billion
  • Cancer Services (leasing of Computed Tomography Scanners Equipment): 7 billion
  • Free Primary Healthcare: 2 billion
  • Health Insurance Subsidy Programme (Elderly and Disabled): 0.8 billion
  • Roll out of Universal Health Coverage: 2.5 billion
  • Establishment of Cancer Institute: 400 million
  • Kenyatta National Hospital: 11.7 billion
  • Moi Teaching and Referral Hospital: 7.7 billion
  • KEMRI: 2.2 billion
  • KMTC: 4.7 billion

Under ministry of health

Education sector 2018/2019 budget allocations

  • free Day Secondary education: 59.4 billion
  • Free primary education: 13.4 billion
  • School Feeding Programme: SH2 billion
  • recruitment of additional teachers: 5 billion
  • technical, vocational education and training: Sh16 billion
  • University Education: 91.1 billion
  • Higher Education Loans Board (HELB): Ksh 9.6 billion
  • fee waiver for all class eight and form four candidates: 4 billion

Under ministry of education

Environment Sector 2018 Budget alocations

  • Water Resource Management: 7.2 billion
  • Water and Sewerage Infrastructure Development: 33.7 billion
  • Forests and Water Towers Conservation: 10.8
  • Integrated Regional Development: 8.3
  • Meteorological Service: 2.2 billion
  • environmental management and protection: 2.9 billion

Other 2018 Annual budget allocations

  • construction of affordable/social housing units by the Government: 3 billion
  • Exploration of Geothermal: 12.7B
  • Oil and Gas Exploration: 4.8B
  • Last mile connectivity: Sh 6.7 B
  • digital literacy programm: Sh11.9 billion
  • presidential digital talent programme: 100 million
  • digital migration: Sh310 million
  • rehabilitation of Nairobi river: 800M
  • Digital Migration (KBC): 310 million
  • restoration of Fort Jesus: 325 million
  • Constituency development fund (CDF): 35.7 billion
  • To support blue economy: 575 million
  • capital lending for hoteliers: 350 million
  • Konza City: Sh 8.9 Billion
  • leather industrial park development: 0.4 billion
  • textile development: 0.4 billion
  • RIVATEX: 1.4 billion
  • New KCC: 200 million
  • construction of housing units for police and Kenya prison officers: 1.5 billion
  • Civil Servant Housing Scheme Fund: 1.5 billion
  • support the servicing of land in various towns: 18.4 billion
  • Single Window Support Project: 300 million
  • continued roll out of IFMIS to counties: 0.7 billion

Download  PDF 2019/2019 Kenya Budget full statement


You can also read  Tuskys Takes Over Prime Location in Kisii, formerly occupied by Nakumatt and Uchumi

Do not miss all our latest analysis on Kenya’s financial year 2018/2019 budget

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