2018/19 budget:losers and winners,this is how it will affect your daily life

2018/19 budget:losers and winners,this is how it will affect your daily life

BY KORIR JUMA,NAIROBI,14TH JUNE 2018-Just as expected treasury cabinet secretary Henry Rotich has officially presented the 2018/2019 budget  estimates in parliament outlining  measures on how to raise the cash to fund the same as well as   the expenditure.

However we losers and winners with   importation of vehicles with a capacity of 3000 cc  being scrap off. cash transfers for the poor enhanced,education which includes free primary and secondary school education,universal health care   will have the largest expenditure.

Here are some big beneficiaries.

Support for education especially TVET institutions having been allocated more towards technical training institutes.

Power generation is another big beneficiary

However the cs says the agenda is to reduce the budget deficit.

Aiming at transforming the economy through housing , health and job creation

The country  will spend approximately Ksh2.55 trillion.

Losers

private passenger vehicles whose capacity is more than 2500cc for diesel and 3000 cc for petrol vehicle they have  been increased exercise duty  of 20% to 30%.

Mobile money transfer service MPESA users have  to dig deeper into their pockets to pay for the service after transaction cost was increased from 10 to 12  % .This is  a proposed  0.05% tax on cash transfer of more than Sh 500,000 between financial institutions.

Reading the budget, Rotich noted that the country’s economy is likely to grow by 5.8% in 2018. Th CS further noted that Key drivers will be agriculture, favourable weather and increase in exports. He further says that the economy generated 898,000 jobs in 2018.

He has also announced an increase from 25% to 35% taxation on imported iron material, in order to increase local consumption, same to paper products. On textile products, the minister proposed an import duty of 5USD or 35%, whichever is higher. In order to encourage locally manufactured clean energy sources, the government will levy 100% import duty on imported stoves.

The CS has allocated  Ksh3 million for securing Kenyan borders, Ksh9.2 billion for leasing of police vehicles and Ksh6.5 billion for police and prison officers medical insurance scheme.

To cater for the deficit of teachers in the country, the CS has set aside Ksh5 billion.

The government will use Ksh115.9 billion for building of roads, Ksh74.7billion for phase two of SGR, Ksh2.7 billion for Mombasa port, Ksh1.4 billion for airports in Malindi, Isiolo and Lokichogio.

In a bid to boost the energy sector, the government has allocated Ksh12.7 billion for geothermal energy and Ksh4.8 billion for oil and gas exploration.

In this year’s budget, counties will receive a total sum of Ksh376.4 billion.

The government will use Ksh800 million in the next one year to clean the Nairobi river.

Matters tourism, the CS has allocated Ksh340 million to tourism efforts in sustaining new markets, Ksh380 million to capital lending for hoteliers and Ksh325 million for restoration of Fort Jesus.

In order to promote internal trade, the CS has directed that all procurement officers shall be required to procure items made in Kenya to promote ‘Buy Kenya,Build Kenya’. A procurement officer shall write a report with regards to items that cannot be sourced in Kenya.

To promote transparency, all procurement officers will be required to publicize tenders on their portals indicating names of contractors, tender evaluation members, name of suppliers to whom tender is given, names of directors, contract price and contract period.

The CS says there was an elaborate plans on how to fund this budget with  the government intended to leverage on local sectors to generate income.

 

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