Highlights - National Budget 2014/15

Cabinet Secretary for the National Treasury Henry Rotich. [PHOTO: FILE]

NAIROBI, Kenya: Following are highlights from the budget speech by Kenya's Cabinet Secretary for the National Treasury, or Finance Minister, Henry Rotich for the 2014/15 fiscal year starting in July.

The budget announcement is coordinated across the East African Community, which also includes Tanzania, Uganda, Rwanda and Burundi.

GROWTH

"On the domestic front, growth prospects remain strong and resilient due to continued implementation of bold economic policies and structural reforms as well as sound economic management."

"Prudent economic policies have helped anchor the conditions for strong and stable growth."

"We have been able to anchor inflation expectations down."

"We forecast our economy to grow by 5.8 percent and 6.4 percent in 2014 and 2015 respectively."

SECURITY

Rotich said enhancing the nation's security was vital for the economy to grow and create jobs. He outlined spending on the security forces and intelligence services.

"Without security the economy will not grow."

DEFICIT

Outlining revenues and spending, taking into account commitments from international development partners, the minister said: "This will leave a deficit of 190.8 billion Kenyan shillings ($2.18 billion) equivalent to 4.1 percent of GDP, which will be financed by net borrowing from the domestic market."

"The government's borrowing plan remains anchored in the medium-term debt management strategy."

"The government will ensure that the level of domestic borrowing does not crowd out the private sector given the need to increase private investment."

HIGHLIGHTS

Duty rates increased for Iron products
Budget deficits to be financed through domestic borrowing
The government projects to increase revenue by 15.5% which is 1.18 trillion
226 billion allocated to County governments
8.1 billion allocated for the training of youth at National Youth Service
Credit access for the youths to be improved
5.5 billion for the promotion of teachers
300 million allocated for the rehabilitation of street families
13.5 billion allocated for free primary education
Free tuition for secondary schools increased by 33%
8.2 billion allocated for water pans and dams
1.65 billion allocated for the construction and improvement of various airports
Rotich: Reducing corruption will lower cost of doing business
E-registry to be made fully operational
All government procurement to be done electronically
Rotich: To reduce wastage we intend to nationalize expenditure and role out e-procurement
More money to be used for leasing vehicles to improve surveillance by the security agencies
The budget will increase allocation for security
More resources to be used to enhance health services
Economy expected to grow
Inflation has gone down
Promotion of local tourism to cost the exchequer 2.4 billion