The Kenya budget statement speech for the financial year 2017/ 2018 was made on 30th March 2017 by the Cabinet Secretary for the National Treasury, Henry Rotich. This year, the budget was read two months early because parliament has to be dissolved at least 60 days before the General Elections slated for August 8th 2017.
In FY 2017/18, overall expenditure and net lending are projected at KSh 2,627 billion. Development expenditure in FY 2017/18 is projected at KSh 640.3 billion. Revenue collections are projected at Ksh 1,549.4 billion. A mix of domestic & external borrowing plus aid will finance the revenue gap.
From a fiscal perspective, the budget has made proposals for amendments to various tax and related statutes. The objectives of the said amendments are to:
- Support growth and domestic production;
- Reduce income inequality;
- Promote job creation;
- Improve tax administration and compliance; and
- Enhance social security and welfare.
The proposed fiscal amendments to aid in realization of the above objectives are discussed below under each tax head. This publication incorporates changes based on the subsequent Finance Bill 2017 that was published in April 2017. Some changes may arise when the Finance Act 2017 is published later this year. Below is our analysis.
Download the A&A Finance Bill 2017 Update