2012/13 Budget at a glance

Finance Minister Robinson Njeru Githae took the budget speech in parliament today/14/6/2012. The 1.45 trillion 2012/2013 budget is the biggest in Kenya since independence and it will be interesting to see how we channel funds without increasing the burden on already overtaxed Kenyans.

 In 2011 Kenya Gdp grew by a 4.5%  and it is estimated that 2012 will at least get a 5.6%.  Poverty level currently stand at 45% down from 52% fifteen years ago with rural areas having huge figures 49.1%  when it comes to poverty. A good budget there fore  should target this group, initiatives on how to improve the poor living condition should be encouraged.  Jobs creation for the youth and the unemployed should also be given a good hand. There is need to give priority to Agriculture, health, jobs creation and education.

To accelerate growth and expand the levels of employment and reduce poverty, Government’s initiatives will focus on: (i) restoring and maintaining macroeconomic stability; (ii) continuing investment in infrastructure,in particular, roads, energy, rails, ports and ICT; (iii) deepening structural reforms, including improving governance with implementation of the Constitution; (iv) enhanced regional integration and accessing new and emerging markets; and (v) targeted support for small and medium enterprises, as well as initiatives to increase value addition in agriculture to increase job creation.

This years biggest gainers were as follows,

Ksh 268.1 Billion has been set aside for infrastructure development.

Orphans and vulnerable children will receive Ksh 4.4 Billion while deserving elderly people will receive 2,000 monthly from the Ksh 1 Billion Fund.
Bright orphans were allocated Ksh 1.1 Billion for their bursary.
Kenya Youth Empowerment project will receive Ksh 490 million while the Youth Enterprise and Women Funds have been boosted by Ksh 450 million and Ksh 550 million respectively.
CCTV will be installed in the Central Business District at a cost of 4.15 Billion
Ksh 148 Billion for the county governments.
Ksh 1.8 Billion for resettlement of the Internally Displaced Persons (IDPs).
Education sector gets Ksh 233 Billion: Ksh 300 million for sanitary towels for poor girls in the country-1.8 Billion for classes
-Free Secondary education has been given 19.3 Billion

Ksh 1 Billion to enforce the Alcohol Control Act popularly known as the ‘Mututho Law’

IEBC will receive Ksh 17.5 Billion

Health sector: Ksh 85 Billion that is expected to employ 5,200 health workers and 900 doctors
Inputs for Medical Kits will be exempted from duty

 Increase in duty of galvanized wire from a zero-rating to 10% in order to protect local industries.
Agriculture: Ksh 8 Billion for irrigation
 - Ksh 10 Billion for Agribusiness
 -Duty on food supplements will be reduced from 10% to 0%
 - Ksh 1.5 Billion to write off Farmer’s debts

Roadblocks and weighbridges to be removed so as to ease trade in the region.
Ksh 1.45 Billion for rail commuter system
Ksh 83.5 Billion allocated for security

Zero-rate duty on set-top boxes that will be used in digital TV migration
KRA will embark on mapping all residential areas to ensure all landlords are brought into the tax net and all rental income taxes are paid.

Duty on secondhand cloths (Mitumba) import to be reduced.

Other things to note on the budget are; No tax exemptions by virtue of holding public office, Banks to absorb liability of omissions and commissions of their agents and recommendation of introduction of laws to regulate the scrap metal business. The government has suffered greatly from vandalism on railway lines and theft of road signs, breaking of the proposed law will lead to a fine of Ksh 1 million.


Get a copy of the 2012/13 budget at http://www.treasury.go.ke