News 

Sunday, December 01, 2013 

Kenya passes $1.3b extra expenditure

NAIROBI, Kenya - The Kenyan Cabinet recently approved the supplementary budget for the Financial Year 2013/2014 amounting to $1.3 billion
The focus is maintaining a stable macroeconomic environment and the government’s policy of containing non- priority and unproductive recurrent expenditure.
Treasury, which is headed by Henry Rotich, will also be shifting resources to pay for development expenditure to help attain and maintain a sustainable public debt level.
The supplementary budget will cater for salary related expenditures amounting to Ksh18 billion (just over $200 million), operations and maintenance of Ksh8.2 billion (about $92 million) and Ksh89.7 billion for ongoing and new projects
Additional Ksh44 billion (nearly $500 million) has been set aside for other projects, Ksh29.1 billion for outstanding pay and additional Ksh16.6 billion for devolved donor funds.
Cabinet statement reads in part; “Funding to cater for the additional expenditure will be sourced from budgetary rationalization, revenue measures through recovery of pay as you earn, domestic borrowing and rationalization of strategic interventions.”
Meanwhile, on the pending bills the Cabinet directed ministries to ensure all carry-overs from the financial year 2012/2013 budget amounting to Ksh15.9 billion are settled immediately, utilising the funds allocated under the financial year 2013/2014 budget.
As a way of containing expenses the Ministry of Devolution and Planning was also directed to freeze new recruitment, suspend adjustment of salaries and allowances and reclassification and creation of new State Corporations.
The Cabinet further approved the amended of the County Allocation of Revenue Act to factor the actual donor funding requirement for ongoing projects.

By Humphrey Liloba, Sunday, December 01st, 2013