NAIROBI, Kenya – Cabinet Secretary, National Treasury and Economic Planning Prof. Njuguna Ndung’u has said that the ruling Keya Kwanza government is banking on its fiscal policy to support the bottom-up economic transformation agenda (BETA).
“This is being done through continued implementation of a fiscal consolidation plan designed towards slowing down the growth of public debt without compromising economic growth,” CS Njuguna revealed.
CS Njuguna spoke on Thursday, June 13, during the budget highlights’ public pronouncements in the National Assembly.
The pronouncements seek to raise revenue measures for the National Government for the Financial Year 2024/025.
“This budget reaffirms the priority policies and strategies for achieving the bottom-up economic transformation agenda that is progressively improving the livelihoods of Kenyans,” CS Njuguna said in Parliament.
Kenya Kwanza’s Second Budget
Y News understands this is the second budget of the ruling Kenya Kwanza administration, which President William Ruto leads.
CS Njuguna’s statement was presented by Standing Order No.42, 41 of the National Assembly and Section 40 of the Public Finance Management Act 2012, which requires that the Cabinet Secretary or the National Treasury make a public pronouncement of the budget policy highlights and revenue-raising measures for the National Government.
“Since 2020, our economy has been unwinding from the effects of negative and persistent global and even domestic shocks that have pushed the economy to its lowest activity level,” the CS explained.
He observed that these shocks include the COVID-19 pandemic, global supply chain disruptions, the effects of climate change due to the prolonged droughts in 2021 and 222, and even the floods of 2023 and 2024.
“The failure to protect and regulate markets disrupted their development and, more importantly, curtailed further investments in those sectors such as coffee, sugar, cotton, and pyrethrum,” CS Njuguna added.
Factors that are essential for Kenya’s transformation
He reiterated that two driving factors are essential for Kenya to transition from a middle-income economy to an upper middle-income status, as envisioned in Kenya’s Vision 2030.
“There is a need to develop the country’s human capital capability and increase production and productivity,” said the CS.
CS Njuguna further said that the Kenyan economy is bearable to the ravaging impact of climate change, as demonstrated in the 2021-2022 severe drought, which was more severe and that Kenyans had not seen for the last 40 years and also the effects of floods that have led to massive property loss and lives.
“The most important thing is that these shocks have shifted budgetary resources from economic activities to saving lives and rebuilding damaged infrastructure, which calls for urgent and decisive interventions,” he explained.
According to CS Ndung’u, measures to address the adverse shocks embarked on structural reforms under the bottom-up economic transformation have been successful.
“The efforts have reduced the cost of living and created vibrancy in the economy, showing signs of strong economic recovery. Kenya has sunk into abject poverty largely because markets in the segments were interfered with or not properly governed,” said CS Njuguna.
Earlier, President Ruto chaired the financial and economic management of the country’s affairs, which he said was his government’s top agenda.
“The policies, legal and economic measures we are taking are the necessary foundation for the transformation of Kenya,” said the head of state.
Meanwhile, before heading to the National Assembly for the presentation of the national budget, a yet-to-be-identified man was arrested and whisked away after disrupting the CS’s photoshoot at the entrance of the National Treasury offices.
