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Pro poor budget analysis Kenya 2019 by Development Initiatives

The Development Initiatives (DI) has released their latest report on pro poor budget analysis Kenya 2019.

Having read the the state of housing in Kenya report, I came up with the following summary:

  • The DI analysis has zeroed-in on budgetary allocations to “the big four agenda” – universal healthcare, affordable housing, manufacturing and food security.
  • As a bonus, the DI analysis also covers budgetary allocation to education and social protection programmes.
  • Under health sector, a total of KES 36.67 billion was allocated which is only 73% of the required resources.
  • The Health Policy, Standards and Regulations programme which has a mandate of achieving UHC, was allocated Ksh. 16.1 billion in the financial year (FY) 2019/20; DI noted that this is a 31% increase from the previous financial year but still is just 57% of the resources required.
  • Social and Affordable Housing Programme was allocated Ksh. 7 billion. DI further notes that this funding was allocated towards the Kenya Mortgage Finance Company.
  • An additional Ksh. 2.1 billion was deposited with the KMFC by the banks and SACCOs out of which International Finance Corporation (IFC) and Shelter Afrique are expected to contribute Ksh. 400 million.
  • Manufacturing as one of the Big Four Agenda was allocated Ksh. 1.1 billion which is just 12% of the resources required;
  • In FY 2019/2020 food security received a total of Ksh. 7.3 billion which is a decline from Ksh. 9.3 billion allocated in FY 2018/2019. It is important to note that food security agenda received all the resources that was required in FY 2018/2019;
  • The 40% budget cut is likely to worsen the situation considering that Kenya largely depends on rain-fed agriculture;
  • The Housing Levy Fund whose regulations were suspended by the High Court is expected to contribute Ksh. 4.4 billion in case it see the light of the day after the court tussle;
  • The Housing Levy Fund will see workers being deducted 1.5 percent of their gross salary to contribute towards the provision of 500,000 housing units in Kenya;
  • Development Initiatives made an important observation that the Ksh. 35 billion credit line by World Bank and AfDB has not been factored in the national budget;

Recommendations made by Development Initiatives (DI): 

  1. DI called upon the government to increase her resource mobilization efforts in order to provide efficient basic services;
  2. Called upon government to ensure quality and harmonized data is provided from various government agencies;
  3. Called for proper coordination between national and county governments and address the lacuna because the Constitution is silent on whose mandate is industrialization;
  4. Called upon the national government to create laws and regulations to govern the newly created Public Investment Management Unit to legitimize its activities;

Access the complete DI budget analysis Kenya 2019 report here.

Read More: Treasury CS Henry Rotich budget Statement on FY 2019/2020

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