Winners And Losers Of Budget 2024/2025
With a total direct allocation of Ksh.54.6 billion in the 2024โ2025 financial budget, farmers are among the main winners.
Although less than the Ksh. 16 billion allotted last year, they will receive Ksh. 10 billion in subsidized fertilizer this year.
Ksh.12.3 billion has been set aside for the development and management of livestock resources, with additional funds going toward food security and small-scale irrigation.
These include, among others, the Food Security and Crop Diversification Project (Ksh.642 million), the National Agricultural Value Chain Development Project (Ksh.6.1 billion), the Youth and Women in Agriculture (Ksh.2.4 billion), the Emergency Locusts Response (Ksh.2.5 billion), and the Small-Scale Irrigation and Value Addition Project (Ksh.647 million).
Additionally, there is a reprieve in the money transfers; M-Pesa providers will now pay a 15% excise duty instead of 20%, which will result in cheaper transaction costs.
The excise levy on cement clinker was removed in this year’s budget, which is welcome news for cement manufacturers as it may result in lower construction component costs.
The budget has also taken vulnerable populations into account. Ksh. 18.6 billion has been allotted for cash transfers to the elderly, and Ksh. 7.9 billion has been set aside for orphans.
This year’s prizes are closed to importers of eggs, potatoes, and onions from the East African Community zone because the government eliminated the excise duty on these goods.
But as Treasury Cabinet Secretary Prof. Njuguna read the budget summary for this year in Parliament on Thursday, there are also some losers.
Wine, beer, and spirit excise duties have been raised by the government, which means that alcohol enthusiasts will have to fork out more cash. Customers will now pay more according on how much alcohol is in their preferred beverage.
The harmonized excise duty of Ksh. 4,100 per millilitre in this year’s budget is another attempt to strangle smokers. Additionally, the price of liquid nicotine has increased from Ksh. 70 to Ksh. 100 per millilitre.
Moreover, the excise tax on gaming, prize competitions, lotteries, and betting has increased from 12.5% to 20%.
In Other News: State allocates Sh13.4 billion to hire JSS intern teachers on permanent terms
Winners And Losers Of Budget 2024/2025