One of the major challenges for the Kenya budget 2011-12, presented by the Finance Minister Uhuru Kenyatta, will be poverty reduction.
Kenya Budget 2011-12: Highlights and Possible Impact
The 2011-12 Kenya budget has been valued at 1.155 trillion Kenyan shillings, which is the biggest amount ever in the East African economy s history.
The infrastructure sector will be allotted at least 220 billion shillings, which is the biggest sector-wise allocation for the present budget.
The elections for the upcoming fiscal will see expenditures of approximately 5 billion shillings.
The Kenyan government will spend 0.3 billion shillings on sanitary pads.
The 2011-12 budget will aim to bring down the increasing costs of living and improve the infrastructural facilities.
The budget has brought down the maize, rice and wheat duties and totally removed the kerosene duty.
The 2011-12 budget has reduced the diesel duty. It has also made several provisions for improving the farming infrastructure in the rural and urban sectors.
A major part of this is a program based on organic sack gardening.
The budget has allotted 10.2 billion Kenyan shillings for creating good irrigation facilities and implementing effective measures for water harvesting.
The funds allotted to infrastructure development for the 2011-12 fiscal have gone up by 34 percent.
This will cover important domains like roads, energy and railways. 2.9 billion Kenyan shillings will be used for setting up a commuter railway network in Nairobi.
The allocation for the energy sector has increased by 100 percent in the 2011-12 Kenya budget.
The government is slated to up its expenditures for developing the geothermal facilities.
The duty applicable for solar raw material has been removed and it is expected to help improve the national alternative energy sector. This will also help increase the sales of domestic solar panels and get them up to the level of the international products that are already exempted from such taxes.
The Kenya Youth Empowerment Project has been provided an extra amount of 210 million Kenyan shillings.
Kenya Economy: Present Situation
Kenya, at the present moment, is facing rather high costs of living. The prices of essential products such as cooking oil and sugar have gone up. As of now, a big slice of the money spent by the economically backward people in Kenya is done for food items. So, according to economic analysts, if the food prices go up even slightly, the poor will be hit hard.
The high rates of youth unemployment are another critical problem for the Kenyan economy. The fact that important projects such as Kazi Kwa Vijana, which were supposed to address employment-related problems, have not been totally effective has further pulled the Kenyan economy back.
This has meant that the Kenyan youth have not been getting sufficient jobs and the outlook for this particular sector is not too bright as well. It is expected that the new budget will deal properly with these issues and also reduce the poverty levels. The 2011-12 budget is also supposed to help the East African economy generate sufficient wealth.