Ruto’s administration will require $24 billion to implement political promises
NAIROBI, Kenya - The Ruto's administration will now require KSH 3 trillion [$24 billion] to fully implement the election promises within the first term. This is according to a new Parliamentary Budget Office Report.
This Parliamentary Budget Office Report further states that some of the financial commitments listed in the Kenya kwanza manifesto were understated and proposed new figures to make the plan a reality within five years.
Dubbed 'An Assessment of the Cost Implications of the Bottom-Up Economic Transformation Plan 2022 to 2027'.
Kenya Kwanza government will require KSH 250 billion to transform the agricultural sector in the first term.
To scale up the growth of SMEs, the administration projects to use KSH 398 billion in five years.
The President’s manifesto contains a KSH 250 billion financial commitment for the period of his tenure that runs from the financial year 2022-2023 to 2026-2027.
These include an annual allocation of KSH 50 billion to the hustler’s fund, which will be launched on December 1, this year.
Other expenses include the establishment of 290 business development centers, one per constituency, at a cost of KSH 2 million per center, equipping 457 TVET institutions at a cost of KSH 3 million each, and construction of 457 industrial parks at an annual cost of KSH 40 million each.
On Affordable Housing projects, Ruto’s administration plans to allocate f KSH 250 billion, of which KSH 50b will be from the government through budgetary allocations and KSH .200 billion from the pension funds.
The new administration pledged to deliver 250,000 affordable units per year and grow the number of mortgages from 30,000 to 1 million through low-cost mortgages of KSH 10,000 and below.
But for Ruto’s administration to have access to the housing project fund, it will be required to allocate at least KSH 58 billion within a five-year period, to unlock KSH 200 billion from pension funds and the private sector, and an additional KSH 5 billion to establish the settlement fund.
KSH 260 will be required to make the Kenya Kwanza health plan a reality within five years.
The new government will spend an additional K SH 40 billion to implement the digital superhighway and creative economy strategy, anchored on four key pillars; digital infrastructure, digital government service, product and data management, as well as digital skills, innovation, and enterprise.
Parliamentary Budget Office says that in order for Ruto’s administration deliver quality and adequate road infrastructure, they will require KSH 200 billion.
The office further states that it will cost KSH 823 billion to complete all ongoing national government roads, including settling pending bills estimated at KSH 140 billion. The figure does not include the cost of constructing new roads.
The country’s energy sector is a key driver of economic growth, the Parliamentary Budget Office indicates that KSH 635 billion will be required to light the country and power the industries to successfully finance the education sector in five years.
Parliamentary Budget Office also projects the cost of implementing the women's agenda at KSH 12 billion, social protection at KSH 116 billion, and governance at KSH 50 billion while implementation of the environment and climate change plan will cost KSH .24 billion.
The Parliamentary Budget Office projects a KSH 2.5 trillion revenue in 2022-2023 that will rise to KSH 4.2 trillion in the 2026-2027 financial year.