June 2 01 6

SUS TA I NIN G P R O S P E R I T Y IN A VOL AT IL E GL OBAL ECONOMY

Government Spending on Programmes Overall Budget and Financing
Overall Government expenditure and net lending for the Financial Grants
Year 2016/17 is KSh 2,265.0 bn.
Total Revenue
KSh 1,500.6bn KSh 72.7bn
Of which:
• KSh 854.0 bn : ministerial recurrent expenditure
• KSh 817.0 bn allocation for development expenditure
• KSh 310.9 bn for interest payments and pensions
• KSh 284.8 bn for county transfers (includes level v hospitals)
• KSh 5 bn for contingency fund
• KSh 2.1 bn for net lending
bn
6 4.8
Ministerial Expenditures includes Judiciary (KSh15.8bn) and 2,2
Parliament (KSh 28.4bn) KSh
Sources of the KSh 1,500.6bn Total Revenue
Deficit (KSh 691.5bn)

Deficit Financing

Project Loans KSh 348.3bn

Commercial Financing KSh 153.8bn
Program Support KSh 3.9bn
Foreign Repayment (KSh 43.6bn)
KSh 4bn
KSh 225.3bn

Government Spending on Programmes

KSh 20.9 bn on General Economic & Commercial Affairs
KSh 33.7 bn on Social Protection

KSh 60.3 bn on Health

KSh 69.6 bn on Agriculture, Rural & Urban Development

KSh 92.9 bn on Environmental Protection

KSh 122.3 bn on Energy
KSh 181.6 bn on Transport

KSh 202.7 bn on Infrastructure & ICT

KSh 232.3 bn on General Public Service

KSh 312.1 bn on Defence, Public order & Safety

KSh 339.3 bn on Education

MAY 2016 The NATIONAL TREASURY 1

 Conducive Business Environment for Job Creation
ENHANCED SECURITY FOR INVESTMENT, GROWTH AND EMPLOYMENT

T
he Government recognizes the importance
of creating and sustaining a conducive
business environment for growth and creating
employment.

This shall be done through: maintaining macroeconomic

stability and improving security so as to encourage
investment opportunities in the country.

improving general welfare of the disciplined forces

by financing police Medical Insurance Scheme and
construction of Police Stations and Houses.

Over 30 ultramodern Kenya Police Service armored

vehicles. KSh.10 bn has been allocated for Modernization
Programme

A National Police Service Vehicle on Patrol on Kenyan Road

A refurbished National Police Service Chopper. KSh. 8.1 bn has been allocated for lease financing of Police motor vehicles,
and aircraft

President Uhuru Kenyatta conducts a tour of low cost housing

development project in Athi-River. KSh. 2.9bn has been allocated
for Construction of Police Stations and Housing

Kenya Police Pass Out Parade. KSh. 13.2 bn have been

allocated for enhanced security operations

2 The NATIONAL TREASURY MAY 2016

 Conducive Business Environment for Job Creation
The Government recognizes the importance of creating
and sustaining a conducive business environment for
growth and creating employment.

This shall be done through: maintaining macroeconomic

stability and improving security so as to encourage
investment opportunities in the country.

The policy in this year’s budget focuses on reducing

incidences of crime and insecurity throughout the
country through continued investment in, among others;

99military modernization , Ksh 15.6 bn

99police modernization programme, Ksh 10 bn
99enhanced security operations; Ksh 13.2 bn
99securitization of borders; Ksh 2.0 bn
99improving general welfare of the disciplined forces President Uhuru commissioning 30 new armoured police
by financing police Medical Insurance Scheme (Ksh vehicles in February 2016
5.1 bn) and construction of Police Stations and Ksh 8.1 bn has been allocated for financing the Leasing of
Houses (Ksh 2.9 bn) motor vehicles and aircraft for better surveillance.

Investing in Sectoral Transformation for Sustainable Economic Growth

The Government recognizes the role that agriculture
plays in enhancing food security, employment creation,
income generation, industrialization and ultimately,
economic transformation through stimulating growth
of related sectors of the economy such as agro-
processing; storage and transport; wholesale and
retail; construction; financial services as well as export
diversification and growth.

Tourism Recovery
Maize ready for harvest at the Galana/Kulalu farm.
The government has allocated KSh 12.2 billion for on-
going irrigation projects countrywide and transformation
of agriculture from subsistence to productive commercial
farming covering about 1 million acres.

MS Nautica Cruise ship from United State of America
docks at the port of Mombasa.
The Government recognizes the vital role tourism,
culture, sports and art play in sustainable development.
The Government therefore will facilitate tourism
promotion and marketing to increase international
arrivals.
Manufacturing
manufacturing sector is a catalyst for moving our economy
up the value chain and in particular in the agriculture
sector for growth of exports and job creation.
An industrial transformation programme has been
developed to build a network of competitive SEZs
which will attract new investments, expansion of
infrastructure, reform of the regulatory environment,
adoption of innovative, more efficient technologies with
the participation of the private sector to exploit business
opportunities in regional and international markets.

MAY 2016 The NATIONAL TREASURY 3

 Investing in Infrastructure to Spur Economic Growth

T
he Government is committed to continue funding the
ongoing public investments in road, rail, energy and
water supplies in order to unlock the constraints to
growth.
Road Construction

T
he president commissions the construction of
Thika Dam Water Project.
To enhance and sustain measures to control
floods and harvest rain water, KSh 48.4 bn has been al-
located for: construction of water pans and dams (KSh
2.5 bn); water supply and infrasture (KSh39.1 bn); wa-
ter storage and flood control (KSh 6.4 bn ); and water
resource conservation (KSh 2.9 bn)

Standard Gauge
Railway Construction

President Uhuru Kenyatta launches the upgrade works on the

Mosobeti-Kebirigo Road to bring it up to bitumen standard. KSh
30 bn has been allocated by the Government for construction
of 3,800km of low volume seal roads across the length and
breadth of the country to open up rural areas and farmlands. ongoing SGR construction

Construction of SGR is on course. KSh 154.4bn has been

allocated for the ongoing construction works.

The first phase of the LAPSSET Corridor Projects

to provide sustainable, cost effective and quality energy,
government has allocated : KSh 2.0 bn for Geothermal
Development; KSh 6.0 bn for Power Transmission; KSh 5.1
bn for Rural Electrification Programme; KSh 5.9 bn for Last
Mile Connectivity; KSh 3.1 bn for National Street lighting
Programme; KSh 7.6 bn for Electrification of Public Facilities;
and KSh 3.4 bn for Exploration and Distribution of Oil and Gas
has commenced. KSh 10 bn has been allocated
for the LAPSSET project. Implementation
of other infrastructure facilities covering
railways, roads, and port operations, including
construction of container terminal will
commence in the course of the MTEF period
under PPP arrangements.

4 The NATIONAL TREASURY MAY 2016