Budget Overview

The Cabinet Secretary for the National Treasury (CS) presented the 2022/2023 budget under the theme: “Accelerating Economic Recovery for Improved Livelihood”. The budget’s focus is on implementing economic policies and undertaking structural reforms geared towards improving the welfare of Kenyans. This includes accelerated implementation of the Big Four Agenda and the Third Economic Stimulus Program for sustainable growth.

The budget seeks to re-prioritize public spending towards pro-poor expenditures in health, education and supporting the vulnerable segment of the population. The Government will also leverage on the Public Private Partnerships to fund public projects, support the private sector and narrow the fiscal deficit.

The budget comes against a background of a moderate global growth of 4.4% in 2022, which is a slowdown from a recovery of 5.9% in 2021. There are some expected risks to this growth outlook largely from possible re-emergence of COVID-19 pandemic and the on-going conflict in Eastern Europe.

Kenya’s economy is projected to stabilize at 6% in 2022, supported by recovery in agriculture, industry and services sectors. To further strengthen this outlook, the Government will continue to safeguard macroeconomic stability by ensuring inflation remains within the Government target range while interest rates remain stable to support growth in private sector credit.

On the domestic front, the projected economic recovery may be adversely affected by reemergence of COVID-19 variants and possible adverse weather conditions. Externally, the ongoing conflict in Eastern Europe has created uncertainties that will affect the global economic outlook through disruption of supply chains, rising global oil prices and increased inflationary pressures.

The fiscal policy supporting the budget for the financial year 2022/23 as well as the mediumterm is designed to accelerate economic recovery for improved livelihood for Kenyans. 

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