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Government To Cut Borrowing By Ksh.186 Billion In The 2024/2025 Financial Year

The National Assembly Budget and Appropriations Committee, led by the chair Ndindi Nyoro, has announced that there will be a significant cut down on targeted borrowing in the Finance Bill 2024/25.

Speaking on Wednesday, the chair said that the move comes in a bid to rationalize borrowing as proposed in the budget estimates.

“We also want to rationalize the amount of money we want to borrow. At the budget policy statement level the country was looking forward to borrowing around Ksh.700 billion and in this estimate we have brought down that estimate to Ksh.514 billion,” he told the press.

Nyoro further highlighted some of the reforms made in paying interest rates which he said will be clustered under the Consolidated Fund Services (CFS) which account for the payment of interest rates and pensions, amounting to Ksh.1.3 trillion.

“Kenya will be spending Ksh.1.08 trillion into payments of interest rates for our loans, what we call financial obligations. There are loans we were paying for which were taken earlier,” he noted.

“Maybe the only sunshine in that is that most of it, maybe around Ksh.750 billion will be domestic and the rest will be to foreign obligations. We will be spending Ksh.200 billion on pensions.”

He also sought to clear the air on some of the most asked questions floated by Kenyans on whether the school feeding programme will be included in the budget.

Nyoro said that consultations with the Education department and the Executive have resolved that a total of Ksh.3 billion will be availed to the National Council for Nomadic Education in Kenya (NACONEK) in support of the first phase of school feeding programmes.

“We have already considered monies that will be going to NACONEK to advance the course of school-going children in areas where they need support in terms of food. School feeding programme will continue uninterrupted,” said Nyoro.

He also stated that those under internship programmes in Junior Secondary Schools (JSS) will have their employment terms converted to permanent and pensionable.

“We do this because they have done a great job so far with very little pay and it is only fair to treat them in a manner that they have also treated our country with alot of respect,” noted Nyoro.

On supporting devolution, the budget chair said major changes have been made in the Division of Revenue Bill, adding the equitable share from the initial Ksh.375 billion to a proposed Ksh.400.1 billion which will be forwarded for approval.

The MP opined that the resources will help bolster agriculture, healthcare, water distribution and all devolved functions.

He added that the committee has also decided to amend Treasury’s proposed budget of Ksh.3.14 trillion and add additional monies.

 

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