Prior to today’s (Friday, June 16, 2023) reading of President William Ruto’s first budget since he was elected president last year, Kenyan lawmakers approved the budget projections for the Financial Year 2023–24.
If redemptions and appropriations-in-aid are taken into account, this year’s budget, which is the largest in Kenyan history, would total Sh3.679 trillion (24 billion euros), illustrating the growing difficulty of debt repayments.
The Judiciary and the Judicial Service Commission (JSC) received Sh22.9 billion, the Executive Sh2.1 trillion, and the Parliament Sh40 billion.
A slew of new taxes, including those on imported fish, beauty items, and gaming, are supposed to raise 2 billion euros in income to fund the 2023–2024 budget.
In order to fund a program for affordable housing, the government also plans to enact an unpopular payroll tax. It was originally 3% but has since been lowered to 1.5%.
“We have to make sacrifices in the short term to succeed in the long term. We have to sacrifice for the future,” explained Finance Minister Njunguna Ndung’u on national TV on Thursday (June 15, 2023).
The growing disapproval of President William Ruto, particularly in light of the rising expense of living, is fueled by this draft budget. The head of state, who was chosen in August 2022 to represent the “resourceful” little people, is accused of being helpless in the face of price increases that have been plaguing Kenya for months, and even of having made matters worse by eliminating subsidies for petrol and maize flour.
MPs from the opposition coalition Azimio exited the room during the budget presentation to protest the content and the voting schedule.
Kenya’s governmental debt is currently $65 billion, or roughly 67% of its GDP, and repayment is getting more and more expensive as the shilling weakens.
