By James Anyanzwa and Macharia Kamau
Finance Minister Robinson Njeru Githae has scaled up budgetary allocations to the ministry of Energy with hopes of fast-tracking oil exploration and development of alternative sources of energy.
This comes just one month after the Government announced its first oil discovery in Ngamia-1 exploration well on Block 10BB, in the Turkana County.
According to the Budgetary estimates for the 2012/203 financial year tabled in Parliament late Thursday, the minister allocated Sh77.2 billion to the Energy sector, which represents 18 per cent (Sh11.5 billion) increase from Sh65.7 billion allotted during the 2011/2012 financial year.
Githae is hoping to present a trillion shillings spending plan for the next financial year, the first under the devolved system of government.
But this is subject to approval of the estimates by the parliamentarians in accordance with the new constitution.
Total Budget
According to the Budget estimates, the total budget for the fiscal year 2012/2013 stands at 1.45 trillion, more than the previous budgets under the Grand Coalition Government.
The bulk of the cash (Sh1 trillion) will go towards financing Government operations, while Sh451.68 billion will be reserved for development.
The lion’s share of development spending will go to the roads sector, which takes Sh95.6 billion for road maintenance and development.
Energy is among the sectors that have been allocated huge amounts, with the others being education, notably the Teachers Service Commission that will get a recurrent budget of Sh119 billion for teachers’ salaries and roads sector, with a Sh95 billion development spending.
Of the Sh77.2 billion allocated to the Energy Ministry, Sh2.6 billion will be spent on petroleum exploration and distribution, geothermal and coal resource exploration and development will take up Sh163 million, while Sh180 million will be spent on development of solar energy.
The funds are targeted on projects for stabilising power supply, including supporting the Kenya Energy Environmental Programme, wood fuel resources development, research, and alternative energy.
Ministry of Finance gets Sh39.8 billion to be used on public financial management reforms, subsidies to non-financial public enterprises, and setting up infrastructure for the operationalisation of the county’s county governments.
Other major beneficiaries include the Ministry of Water and Irrigation (Sh35.2 billion), Ministry of Public Health (Sh26.2 billion), Ministry of Planning (Sh25.8 billion), Ministry of Transport (Sh14 billion), and Ministry of Agriculture (Sh12.5 billion).
Recurrent expenditure jumped to Sh1 trillion, up from Sh695.5 billion in the 2011/2012 financial year, with the Teachers Service Commission taking the largest chunk of the Sh119.8 billion allocations.
