Summary statement and full pdf report of Kenya Budget 2020/2021 financial year that was read in parliament on 11th June 2020 by National Treasury CS Ukur Yatani.
Kenya Budget 2020/2021
The Kenya Budget for the fiscal year 2020/21 was was read on Thursday 11th 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.
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)
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 full pdf report of 2020/2021 budget from : Kenya Budget Reports.
Read about Digital Service Tax which was announced during budget reading and how it will affect you if you work online.
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