Africa-Press – Kenya. The Kenyan economy is projected to grow by 6.1 per cent over the medium term, Treasury CS Njuguna Ndung’u has said. The CS said the figure will be an increase from a 5.5 per cent growth in the 2021-2022 fiscal period.
The CS made the remarks public hearings for the 2023-24 and the medium-term budget preparation at Kenyatta International Convention Centre on Wednesday. Ndung’u however, warned that the growth prospects could be disrupted if some situations, like the Russia-Ukraine conflict, remain constant.
“We have to be prepared for constraints. If Russia-Ukraine conflict continues to escalate, the global supply chains will continue to be affected, thereby causing supply disruptions, a surge on inflation and affect incomes for the exporters in our region,” he said.
He added that low-income countries have been hit hard by the supply disruptions, debt, surges in food and commodity prices, the devastating effects of climate change and limited access to foreign finance.
For three days, Kenyans will give their views on President William Ruto’s first Budget. The meetings will be in accordance with Article 201 (a) of the Constitution and Section 36 of the Public Finance Management Act 2012, which requires public participation in the budget-making process.
Ruto’s first budget has been set at Sh3.64 trillion, and the President has already announced austerity plans in his efforts to create jobs for Kenyans. The Sh3.64 trillion budget is an increase from an earlier estimate of Sh3.55 trillion.
In his remarks, Ndung’u said the projected growth will be reinforced by the government’s Bottom-Up Economic Transformation Agenda geared towards an economic turnaround and inclusive growth.
He said avenues of inclusive growth include creating jobs and agro-processing for export. The CS said the government will put emphasis on aggressive revenue mobilisation including policy measures to bring on board additional revenue.
“County governments are also expected to put measures in place to ensure optimisation of Own Source Revenue collection, adherence to fiscal responsibility principles and clearance of pending bills,” he added.
The chairperson of National Assembly’s Budget and Appropriations Committee Ndindi Nyoro, State Department for Economic Planning PS James Muhati and his National Treasury Chris Kiptoo also addressed the meeting.
Nyoro said the 2023-2024 budget is being prepared in a difficult economic situation. “We have disruptions of the supply chains and the drought is unprecedented and has contributed to the high cost of living and inflation,” he said.
“We are also transforming to CBC and recruiting 30,000 teachers. It comes with costs. The debt is also approaching Sh10 trillion.” Kiptoo said public hearings are meant to provide a platform for stakeholders to validate and give feedback on the Sector Budget Proposals.
“I wish to request our stakeholders to critically analyse the budget proposals and give us your inputs for incorporation in the finalisation of the National Budget,” he said.
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