Treasury reviews Budget in line with Jubilee promises

President-elect Uhuru Kenyatta (left) presents the Jubilee manifesto to Finance minister Njeru Githae in the minister’s office in Nairobi on March 12, 2013. Photo/PPS 

By GEOFFREY IRUNGU

Posted  Thursday, April 4   2013 at  21:26

IN SUMMARY

• The cash will, among others, implement the promise for free maternal healthcare, free milk to school-going children and free access to dispensaries or public hospitals immediately.
• Finance minister Njeru Githae said the promise to give a solar lap-top to each child starting school would be implemented on a pilot basis at the beginning.

The newly elected government is crafting a supplementary Budget that could cost the taxpayer as much as Sh16.4 billion, in part, to fulfil campaign promises made by the Jubilee Coalition.

The cash, required before end of the financial year, will, among others, implement the promise for free maternal healthcare, free milk to school-going children and free access to dispensaries or public hospitals immediately.

The measures will be incorporated in the Supplementary Budget planned to come later this month in Parliament, outgoing Finance minister Njeru Githae said on Thursday. He did not specify where the money will come from given the taxman is struggling to meet targets.

While announcing the Treasury had released the initial Sh20 million to each county, Mr Githae said that the promise to give a solar lap-top to each child starting school would be implemented on a pilot basis at the beginning.

Beginning July this year, the annual Budget will provide for the full implementation of the laptop supply for children entering Class One, Mr Githae said.

“The President-elect [Uhuru Kenyatta] has instructed me to ensure that we provide for the implementation of free maternal healthcare, school milk and dispensary access immediately. This will come in the Supplementary Budget,” the minister said.

On the Jubilee Coalition promises, Mr Githae said the Treasury had no choice but to implement them.

Only days after being pronounced President-Elect by the Independent Electoral and Boundaries Commission of Kenya (IEBC), Mr Kenyatta made a discreet visit to the Treasury to present to Mr Githae and his PS Joseph Kinyua the coalition’s manifesto.

“The current Budget remains the way it was done but we now have a chance to incorporate the priorities of the new government. Our aim is still to progressively increase the funds intended for development rather than raise recurrent Budget,” said Mr Githae.

The free milk, maternal healthcare and dispensaries visits could cost at least an extra Sh16.4 billion.

The manifesto proposes to partner with dairy saccos to provide the milk which probably could lower the price to about Sh60 a litre, amounting to a total of Sh12 billion considering 10 million children in primary school.

(Read: Jubilee manifesto courts private sector, youth, women)

A patient is charged Sh20 for each dispensary or hospital visit. Available data show that in 2010, there were 22.7 million reported out-patient attendance cases in both public and private hospitals around the country. Since most were in public institutions, it would cost a total of about Sh400 million.

With the population rising by roughly a million babies annually, a waiver of Sh4,000 maternity fee (as at Pumwani Maternity Hospital) would cost the government Sh4 billion annually. The three measures will immediately cost at least Sh16.4 billion, which should then be expected to be included in the Supplementary Budget.

However, when the promise for solar lap-top computer is finally implemented, it would cost no less than Sh14 billion annually, on the basis of the 1.6 million expected in Class One in 2014
.Mr Githae spoke at the Treasury as he explained that the rest of funds meant for county government spending would be released as soon as the Transition Authority gave the go-ahead.

The Sh20 million already disbursed to 47 counties amounted to Sh940 million, leaving a balance of Sh8.86 billion. The minister said the money had been held up by the fact that counties needed to open accounts at bank branches at the county level as well as two accounts – one for development and the other recurrent expenditure – at the Central Bank of Kenya.

Country representatives

At the local level, the county government were also supposed to open accounts including a petty cash account. However, Mr Githae said he could not commit himself on the increase in salaries sought by MPs, stressing that the matter was still under discussion between the Salaries and Remuneration Commission and the legislators.

“In some commissions, commissioners are earning more than the president. Perhaps there is still need for further realignment. SRC can negotiate even with the county representatives for pay. These are ongoing matters,” said Mr Githae.

Mr Githae said the delay in releasing the cash to the counties had not been intended by the Treasury as had been portrayed by some of the newly elected governors.

He said the Treasury had prepared an itemised Budget for the counties as it would have been practically impossible for the counties to prepare them in time once the newly elected governors took their oath of office.

“The Transition Authority asked us to prepare an itemised budget so that the county government can begin work as soon as the county representatives and the governor were in office. If we had left the matter to the new county governments, it would take them at least three months to prepare their own Budgets,” said Mr Githae.

girungu@ke.nationmedia.com