National Assembly proposes budget cuts in next financial year

Members of the National Assembly want the proposed Ksh 316 billion allocation to counties in the next financial year reduced on concerns about external shocks that the economy is witnessing.

Contributing to the Division of Revenue Bill which is in its second reading, legislators projected that the Corona Virus pandemic and the desert locust invasion is likely to lead to lower revenue collection by over 30 per cent, hence the need to trim budgets.

The Kenya Revenue Authority is projected to miss its Ksh 1.8 trillion revenue collection target this financial year given the external shocks that have hit the economy in recent months.

The economic shocks comprise the desert locust invasion that is projected to hurt the agricultural sector as well as the coronavirus pandemic that has affected nearly all sectors of the economy.

Members of the National Assembly are therefore projecting a grim outlook in terms of revenue collection in the current financial year and even the next financial year.

Based on this, legislators, therefore, want the proposed Ksh 316 billion allocation to counties in the next financial year reduced.

This is however likely to spark a fight between the National Assembly and governors, who have been pushing for more allocations to counties.

There were some Members of the National Assembly who are against the reduction of the county allocation and are instead calling for more austerity measures to reduce government spending to support the proposed allocation to counties.

Although the Division of Revenue Bill sailed through to the third reading without any amendments, legislators are calling for auditing of county government allocations and conditional grants for transparency and accountability.



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