Kenya’s parliamentarians have successfully passed the budget estimates for the Financial Year 2023/24, marking President William Ruto’s first budget since his election last year.
This year’s budget is the largest in Kenya’s history, with a staggering Sh3.679 trillion (24 billion euros) allocated, including redemptions and appropriations-in-aid, highlighting the growing burden of debt repayments.
The Executive has been granted Sh2.1 trillion, while Parliament has been allocated Sh40 billion. The Judiciary and the Judicial Service Commission (JSC) have been granted Sh22.9 billion.
These allocations reflect the government’s priorities and the areas that require the most attention and investment.
The 2023-2024 budget is to be financed by a battery of new taxes – ranging from imported fish to beauty products to gambling, which should generate 2 billion euros in revenue.
The government also wants to introduce an unpopular payroll levy to finance a low-cost housing program.
Initially set at 3%, it has been reduced to 1.5%.
The current draft budget has further fueled the mounting criticism directed towards President William Ruto, particularly regarding the escalating cost of living.
As the elected leader who promised to champion the interests of the common people, President Ruto is now being accused of being ineffective in addressing the persistent price hikes that have plagued Kenya for several months. Some even claim that his decision to remove subsidies on fuel and maize flour has only worsened the situation.
During the budget presentation, members of the opposition coalition Azimio walked out of the room in protest of the proposed text and the timeline for the vote. This move highlights the growing discontent among the opposition and the public at large, who are demanding more concrete actions to alleviate the economic burden on ordinary citizens.
Kenya’s public debt stands at $65 billion, or around 67% of gross domestic product, and repayment is becoming increasingly costly as the shilling continues to depreciate.
