2022 Elections Force Change in Budget Process

  • The National Treasury has confirmed the budget making process for the 2021/22 financial year will start in August as opposed to it’s usual starting time in September.

    The notice revealed Treasury’s view that it is imperative for the process of preparing the 2022 Finance bill to begin early enough to ensure that the Finance Act.2022 is enacted before Parliament breaks in preparation for the General Elections.

    Controller of Budget Dr Margaret Nyakang'o.
    Controller of Budget Dr Margaret Nyakang’o.

    This means that Kenyans will have a view of the next proposed taxes by the end of January 2022.

    According to estimates contained in the 2021 Budget Policy Statement (BPS), next year’s budget will sit at a record Ksh3.9 trillion surpassing the just adopted Ksh3.6 trillion spending plan for the 2021-22 financial year.

    Net spending in the period is projected at Ksh3.2 trillion while debt redemption stands at Ksh715.7 billion.

    The budget is expected to be financed from Ksh2.4 trillion in total revenue and Ksh775.3 billion in net loan financing.

    Subsequently, the Planning Ministry has also opened for proposals from the public and private sectors on economic policy measures, to be integrated in the upcoming budget cycle.

    The Recommendations to be embedded in the budget require to resonate with the Economic Recovery Strategy (ERS) which aimed at steering post pandemic recovery plans.

    Deadline for submitting the proposals is August 30th 2021.

    A file iumage of the National Treasury
    The National Treasury offices at Harambee Avenue, Nairobi