
BUDGET 2024/25: The Winners and Losers As Treasury Lays The Finances Bare
Farmers are among the biggest beneficiaries of the 2024/2025 financial budget, with a total direct allocation of Ksh.54.6 billion.
They will receive Ksh.10 billion in subsidized fertilizer this year, a decrease from the Ksh.16 billion allocated last year.
Ksh.12.3 billion has been allocated for livestock resource management and development, with additional funds going towards small-scale irrigation and food security.
These include the small-scale irrigation and value-added project (Ksh.647 million), the emergency locust response (Ksh.2.5 billion), youth and women in agriculture (Ksh.2.4 billion), the National Agricultural Value Chain Development Project (Ksh.6.1 billion), and the Food Security and Crop Diversification Project (Ksh.642 million), among others.
There is also a reprieve in money transfers, with excise duty reduced from 20% to 15% for M-Pesa operators, lowering transaction costs.
#BudgetKe24 Highlights: The Gov’t believes that Micro, Small and Medium Enterprises (MSMEs) play a vital role in economic growth. To bolster enterprise, the following allocations have been made:
— The National Treasury & Economic Planning (@KeTreasury) June 13, 2024
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Cement manufacturers are also pleased with this year’s budget, which removed excise duty on cement clinker, potentially lowering the cost of the construction component.
Vulnerable groups were also considered in the budget. Cash transfers to the elderly have been allocated Ksh.18.6 billion, while orphans have received Ksh.7.9 billion.
The government removed excise duty on imported eggs, potatoes, and onions from the East African Community region, bringing the list of winners to a close for the year.
However, there are some losers in this year’s budget statement, as read by Treasury Cabinet Secretary Prof. Njuguna in Parliament on Thursday.
The government has increased excise duty on wines, beer, and spirits, so alcohol lovers will have to dig deeper into their pockets.
Consumers will now pay more depending on the alcoholic content of their favorite beverage.
This year’s budget also includes a harmonized excise duty of Ksh.4,100 per millilitre, which will hit smokers hard. Liquid nicotine is now priced at Ksh.100 per millilitre, up from Ksh.70.
Furthermore, the excise duty on betting, gaming, lottery, and prize competition has been increased from 12.5% to 20%.
The government has also noticed a shift in alcoholic beverage advertising from traditional media to online advertising and has expanded the tax base to include online advertisements.
BUDGET 2024/25: The Winners and Losers As Treasury Lays The Finances Bare