This is a summary post for budget analysis for the 2018/19 budget read by CS Henry Rotich. The budget focuses on financing Uhuru Kenyatta’s Big 4 Agenda. Thus, ways of raising the tax revenues and where the expenditures will go are highlighted.
1. The total direct financing for the Big 4 financing will be Sh. 73.75 billion split between manufacturing (2.4 bn), food and nutrition security (20.25 bn), UHC (44.6 bn), and housing (6.5).
2. The Big 4 enablers will take up Sh. 997.3 bn split between county governments (314 bn), education (200.6 bn), infrastructure (275.8 bn) among others.
3. The budget deficit is Sh. 558.9 bn which is expected to be met through project loans (235.8 bn), commercial financing (298.9 bn), programme support (2.5 bn), net domestic financing (271.9 bn).
4. Excise duties:
a) Sh 20 per Kg on sugar confectionaries and chocolates.
b) 12% on cellular phones money transfer fees.
c) 30% on private passenger motor vehicles whose engine capacity exceeds 2500cc for diesel and 3000cc for petrol powered vehicles.
d) 0.05% on any transfer of amounts of Ksh 500,000 or more by banks/ financial providers (Robin Hood tax)
5. Income tax – replaced the turnover tax with a presumptive tax based on the business permit or trading license fees at a rate of 15%.