Uhuru signs Bill freeing up to Sh1.4 trillion govt cash

Treasury building. FILE PHOTO | NMG 

By GEORGE OMONDI

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Summary

• The funds will pay for public goods and services before MPs can approve the 2018/19 budget.
• The money is in addition to Sh398.5 billion which is expected to be generated internally by the government agencies and departments.
• Move by Uhuru is necessary to avoid counties and national government shutdown when the next financial year begins on July

The National Treasury is free to start disbursing cash to government departments and agencies from Monday after President Uhuru Kenyatta signed into law the Appropriation Bill 2018.

The Bill signed today clears Treasury Cabinet Secretary Henry Rotich to draw up to Sh1.4 trillion from the Consolidated Fund to pay for public goods and services before the MPs can approve the 2018/19 budget.

The money is in addition to Sh398.5 billion which is expected to be generated internally by the government agencies and departments, technically called Appropriation in Aid (AIA).

The move by Mr Kenyatta is permitted under the law. It is necessary to avoid counties and national government shutdown when the next financial year begins on July 1 as the MPs are yet to begin debating the 2018/19 spending plan.

National Assembly Speaker Justin Muturi, Senate Speaker Ken Lusaka and Treasury CS Henry Rotich attended the signing ceremony at Statehouse Nairobi.

Budget

The Sh3.072 trillion budget includes a deficit of Sh562.75 billion. It allocates Sh1.6 trillion to the national government for the whole year, Sh14.8 billion to the Judiciary and Sh36.8 billion to Parliament. The 47 counties have a total allocation of Sh372.74 billion.

The 2018/2019 budget, the first to be prepared and approved in Mr Kenyatta’s second term, is geared towards achievements of the four pillars of growth namely manufacturing, food security, health coverage and affordable housing.

Eyes are on Parliament as it begins to debate the budget which has proposed reclassification of a number of foodstuffs, medicaments and farm inputs from zero Value Added Tax (VAT) to exemption status, setting up households for hard times.

Services such as transfer of a business as a going concern by a registered person to another registered person and supply of natural water – excluding bottled water – are also set to become expensive if MPs do not change the budget proposals.

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