Kenya has increased its budget estimates due to elections, Covid-19 expenditures and a bailout for the national carrier. PHOTO | FILE Kenya’s supplementary budget estimates presented to Parliament on Tuesday indicate fresh allocations of $231.6 million to the national carrier and other undisclosed expenditures, $217.6 million to fuel subsidy, $79.1 million to prepare for the August General Election and $74.3 million to Covid-19 vaccines.
This has seen a 3.3 percent jump in the national budget from the original plan presented in April last year, widening the budget deficit.
The Treasury had targeted to offer Kenya Airways $466.8 million in direct budget support in the year to June 2022 as well as the subsequent year, making it the largest corporate bailout.
Kenya Airways bailout, fuel subsidy and payments for Covid-19 vaccines topped the list of unforeseen expenditures that will see Kenyan taxpayers spend $944.1 million more in the budget for the financial year ending June.
Kenya’s supplementary budget estimates presented to Parliament on Tuesday indicate fresh allocations of $231.6 million to the national carrier and other undisclosed expenditures, $217.6 million to fuel subsidy, $79.1 million to prepare for the August General Election and $74.3 million to Covid-19 vaccines.
This has seen a 3.3 percent jump in the national budget from the original plan presented in April last year, widening the budget deficit.
“The overall change in the national government ministerial budget, excluding the consolidated fund services and county allocations, from the original approved budget is an increase of $1.1 billion,” Treasury Cabinet Secretary Ukur Yatani told Parliament.
He attributed the increase to expenses linked to the elections, Covid-19 expenditures, including $11.36 million for building a vaccines plant, and the bailouts.
This increased the budget deficit from the original projection of 7.5 percent of gross domestic product to 8.1 percent, signalling additional borrowing to plug the financing hole.
The Treasury had targeted to offer Kenya Airways $466.8 million in direct budget support in the year to June 2022 as well as the subsequent year, making it the largest corporate bailout.
The national carrier needs money for maintenance of grounded planes, payment of salaries and settlement of utility bills such as security, water, electricity and parking as well as to ease the effects of the virus that has obliterated global demand for travel.Without State aid, the airline risks running out of money in the near future against the background of unease among banks about lending to African carriers.The bailout […]