Cabinet approves Budget estimates for 2014/2015

By Ken Mureithi

Nairobi, Kenya: The Cabinet has approved the budget estimates for the 2014/15 financial year after a special meeting Sunday. Cabinet has also adopted the austerity measures following its recent retreat that have generated over Sh27 billion into the Development Budget. The approval comes ahead of April 30, deadline when Treasury is required to table the estimates before parliament for debate.

Some of the highlights in the next financial year include plans to spend Sh10 billion to empower the National Youth Service and create youth employment initiatives. The State will also spend Sh51 billion on infrastructure projects, such as roads, airports and ports.

The government has further set aside Sh5.5 billion to support leather and textile sectors through creation of special economic zones and reduction in cost of doing business. The energy sector has been allocated Sh8 billion to initiate energy transformation programmes that will ensure drastic reduction in cost of power and new connections.

The Government also plans to restructure the National Hospital Insurance Fund, lease medical equipment and fight disease, all at a cost of Sh5 billion. The Government plans to double cash transfer to senior citizens to cover at least one million people up from 500,000.  More funds have been set aside for creation of huduma centres in all counties and digitalisation of the lands and company registries to improve efficiency and ensure issuance of more than three million title deeds.

To improve housing, the Government seeks to complete the Mavoko Housing and Konza projects targeting low-cost housing and slum upgrading. To boost Agriculture, the Government has also allocated funds that will ensure the revival of pyrethrum sector, Agriculture Development Corporation and milk coolers as well as restructure of the ailing Kenya Meat Commission. It will also invest in food security strategies, including fertiliser production to eradicate famine.

In addition, the Government plans to develop five sports stadia to improve, sports arts and ensure talent development. The State will also acquire 1200 vehicles for National Government Coordinators, County Commissioners, Deputy County Commissioners and Assistant County Commissioners and motorcycles for all chiefs.