Ksh45Bn Supplementary Budget to lower Kenya’s devpt spending target

Total revenue collections in the month of August totaled KES 101.83Bn (KES 99.98Bn in tax income and KES 1.84Bn in non-tax income).

This brings the cumulative total revenue collections in the first two months in FY17/18 to KES 189.72Bn (12.25% of FY17/18 revenue target).

Development spending in July-August period hit KES 14.45Bn (3.72 percent of KES 388.48Bn target in the current fiscal year).

With the current political impasse, we are of the view the slow absorption of development funds will protract in the near term.

In equal measure, the Supplementary Budget to be tabled in Parliament today will see a lowering of development spending target for the year to cater for the mini-budget.

The cabinet approved more than Ksh45 billion in its supplementary budget.  

Treasury data indicate that no cash was released to county governments in the July-August period.

The anomaly was occasioned as the newly-elected Senate members were yet to be sworn-in before approving the schedule of disbursement.

Treasury, therefore, advanced KES 17.90Bn (89.68% of disbursed amount to National Treasury in July-August period) to some county governments to enable salaries and essential services payments.