Kenya Budget 2020/2021 Summary Statement and full report pdf

Summary statement and full pdf report of Kenya Budget 2020/2021 financial year that was read in parliament on 11^th June 2020 by National Treasury CS Ukur Yatani.

Summary statement of Kenya budget for fiscal year 2020/2021 and full pdf report/Photo

Kenya Budget 2020/2021

The Kenya Budget for the fiscal year 2020/21 was was read on Thursday 11^th June 2020 at 3:00 pm by National Treasury Cabinet Secretary Ukur Yatani.

Covid-19 Economic Recovery Actions

Tax Reductions due to Covid-19

Income tax Reduction: 16 % to 14%
Co-corporation tax Reduction: 30% to 25%
Turnover Reduced from: 3% to 1%
Tax relief: Persons earning Ksh. 24,000 and below to get 100% relief

Funds to Due to Covid -19

10 billion for vulnerable people in the society
400 million for food and non-food commodities for affected households

Covid-19 funding and Grants

78.3 billion From IMF
108 from World Bank
22.5 African development bank
6.5 European development bank inform of grants

Allocations Geared towards Economic Recovery

The economic recovery plan includes providing jobs to Kenyans and credits to businesses totaling to Ksh. 56.6 billion as distributed below:

Repair of Damaged Access Roads and Foot Bridges which will offer jobs to youths: Ksh. 5 billion
Kazi Mtaani for unemployed youths in Urban settlements: 10 billion
Education Allocations to intern teachers and local artisans: 7.4 billion
Micro Small and Medium Enterprises: Ksh. 3 billion seed capital and Ksh. 10 billion VAT refund claims owed to businesses.
Health: Ksh. 1.2 billion for recruitment of additional health workers for 1 year, Ksh. 500 million to supply beds and beddings to hospitals, Ksh. 25 million supply walk through sanitizers to boarders
Agriculture: Ksh. 3 billion for subsidize farming inputs, Ksh. 3.5 billion for community irrigation schemes, Ksh. 1.5 billion for flower and horticultural farmers.
Tourism: Ksh. 3 billion for renovation of industry facilities and Ksh. 2 billion for grants to conservancies
Environment: Ksh. 1 billion to support flood control using local labour and 850 million rehabilitation of wells and 450 million for tree planting program.
Manufacturing: Ksh. 600 million to purchase locally assembled vehicles, 712 million to provide credit to micro and SMEs in the manufacturing sectors.

National Treasury CS Ukur Yatani reading 2020/2021 Kenyan budget in parliament/Photo Source

Health Budget Allocation (2020/2021)

Health sector will be allocated a total of ksh. 111.7 billion Which will be distributed as shown below:

Universal Health Coverage: 50.3 billion
HIV, Malaria and Tuberculosis: 19.2 billion
Managed Service Equipment: 6.2 billion
To transform health care systems: 5.3 billion
Free Maternity: 4.1 billion
Medical Cover for the Elderly and Severely Disabled people: 1.8 billion
Kenyatta Hospital: 15 billion
Moi Teaching and Referral Hospital: 10 billion
KEMRI: 2.5 billion
KMTC: 7.2 billion
Mathare Hospital: 1.2 billion
Level Five Hospitals in THE Counties: 4.3 billion (conditional grant)

Manufacturing allocation

A total of 18.3 billion will be allocated to the manufacturing sector to promote local industries:

1.4 billion: Kenya Industrial and Entrepreneurial project
3.5 billion: Development of Special Economic Zones
843 million:Modernization of Rivatex
800 million: Development of SMEs
715 million: Kenya Youth Empowerment and Opportunities Project
500 million: Dairy Processing
3 billion: Dongo Kundu Special economic zone

Food and nutrition Security

Total of 52.8 billion allocation to food security is distributed as follows:

10.6 billion: Kenya Climate Smart Agriculture project
5.5 billion: National Agricultural and Rural exclusivity project
4.1 billion: Kenya Cereal enhancement programme
730 million: Food security and crop diversification project
10 billion: For irrigation and land reclamation

Education Budget Allocation 2020

497.7 billion has been allocated to the education sector as follows for fiscal year 2020/2021:

59.4 billion: Free Day secondary education Programme
12.4 billion: For Free Primary Education programme
2 billion: Recruitment of 5k Teachers
1.8 bilion: School Feeding Programme
6.3 billion: For Construction and EQuipting Technical Institutions
4 billion: KCSE and KCPE exam fee waiver of respective candidates
800 million: Digital Literacy programme and CBC
323 Million: Nationa Research Fund
94.9 billion: To Support University Education
16.8 billion: for HELB

Housing Budget Allocation (2020/2021)

Housing, urban development, and public works sector has been allocated 15.5 billion distributed as follows:

Affordable Housing Programme: 6.9 billion
7.5 billion for the Kenya Urban Programme
1.1 billion: Construction of Gikomba, Githurai, Chaka, Kamukunji and Dagoretti Market

Total: The total spending for the financial year 2020/21 amounts to a total of Ksh. 2.79 trillion.

NOTE: To get all details, download the full pdf report of 2020/2021 budget report.

Read about Digital Service Tax which was announced during budget reading and how it will affect you if you work online.