Kenya’s 2023/2024 Budget: Highlights of the allocations

  • 19 Jun 2023
  • 4 Mins Read
  • 〜 by Annette Muindi

On Thursday 15th June, the Budget for the financial year of 2023/2024 was read before the National Assembly, highlighting the government’s Bottom-Up Economic Transformation Agenda. This was pursuant to Standing Order No. 241 of the National Assembly and Section 40 of the Public Finance Management Act, 2012 which requires the Cabinet Secretary for the National Treasury to make a public pronouncement of the budget policy highlights and revenue-raising measures for the national government.

In his speech, Prof Njuguna Ndung’u, the Cabinet Secretary for the National Treasury, placed a special focus on interventions that the government wishes to accomplish with this budget. These include: reducing the cost of living; increasing employment; incentivizing investment and production; achieving a more equitable distribution of income; enhancing social security, expanding the tax base for more revenue; and increasing foreign exchange earnings. In this regard, Ksh 278.7 billion has been allocated in the Financial Year 2023/2024.

The agenda aimed to increase investments in at least five sectors envisaged to have the largest impact and linkages to the economy as well as on household welfare. These include

1)  Agricultural Transformation and inclusive growth;

2)  Micro, Small and Medium Enterprise (MSME);

3)  Housing and Settlement;

4)      Healthcare; and

5)  Digital Superhighway and Creative Industry

Agricultural transformation and inclusive growth

This intervention aims at ensuring food security in the country through climate change mitigation and adaptation. This intervention is also aimed at creating. Ksh 49.9 billion has been allocated to meet this end. Key allocations in this budget include:

  •         Ksh 4.5 billion Fertilizer Subsidy Programme;
  •         Ksh 1.4 billion Small Scale Irrigation and Value Addition Project;
  •         Ksh 2.1 billion Kenya Cereal Enhancement Programme;
  •         Ksh 2.7 billion National Agricultural and Rural Inclusivity Project;
  •         Ksh 8.6 billion National Agricultural Value Chain Development Project (NAVCDP)
  •         Ksh 2.8 billion Emergency Locusts Response;
  •         Ksh 1.5 billion Climate Smart Agricultural Productivity Project;
  •         Ksh 1.3 billion Enhance Resilience for Food Production and Nutrition security Programme;
  •         Ksh 8.1 billion Blue Economy Priority Projects;
  •         Ksh 7.5 billion to Improve Livestock Production;
  •         Ksh 350 million Development of the Leather Industry Park;
  •         Ksh 1.2 billion Processing and Registration of Title Deeds
  •         Ksh 893 million Digitization and construction of Land Registries;

Micro, Small and Medium Enterprise (MSME)

Under this sector, the government aims at correcting market and institution failure problems through schemes that will ensure that the benefits of growth are fairly distributed. This will promote access to affordable credit to most Kenyans at the bottom of the pyramid through the Hustlers Fund.  Key allocations here include:

  •         Ksh 10.0 billion Hustlers Fund
  •         Ksh 175 million Youth Enterprise Development Fund
  •         Ksh 182.8 million Women Enterprise Fund
  •         Ksh 300 million Provision of Finances to SMEs in the Manufacturing

Housing and Settlement

This intervention aims at reducing the proliferation of slums. Additionally, it aims to create quality jobs for over 100,000 youths. This will be done by facilitating the delivery of 250,000 houses per annum and enabling low-cost housing mortgages.

Ksh 35.3 billion has been allocated for the housing programme. This includes:

  •         Ksh 5.1 billion Construction of Markets
  •         Ksh 5.0 billion Kenya Affordable Housing Project (Kenya Mortgage Refinance Company)
  •         Ksh 3.2 billion Construction of Affordable Housing Units
  •         Ksh 5.6 billion Kenya Informal Settlement Improvement Project – Phase II
  •         Ksh 1.0 billion Construction of Housing Units for National Police and Kenya Prisons
  •         Ksh 7.2 billion Kenyan Urban Programme (KenUP)
  •         Ksh 3.3 billion Construction of Social Housing Units


Under this sector, the government is focused on promoting access to quality and affordable healthcare through the Universal Health Coverage programme. The sector has been allocated Ksh 141.2 billion. Key allocations to the sector include:

  •         Ksh 18.4 billion Universal Health Coverage
  •         Ksh 5.9 billion Managed Equipment Services
  •         Ksh 4.1 billion Free Maternity Health Care
  •         Ksh 1.7 billion Medical Cover for the Elderly and Severely Disabled in our Society
  •         Ksh 21.6 billion Kenyatta National Hospital
  •         Ksh 12.8 billion Moi Referral and Teaching Hospital
  •         Ksh 8.8 billion Kenya Medical Training College
  •         Ksh 4.6 billion Vaccines and Immunizations
  •         Ksh 2.4 billion Kenya National Hospital Burns and Pediatrics Centre
  •         Ksh 2.5 billion Construction and Strengthening of Cancer Centers
  •         Ksh 24.8 billion Global Fund (HIV, Malaria, TB)

Digital Superhighway and Creative Industry

The government anticipates that digitization and automation will increase productivity and competitiveness through eliminating information asymmetry in market access and risk management.

To achieve these aspirations, Ksh 15.1 billion has been allocated to fund initiatives in the ICT sector. This includes:

  •         Ksh 4.8 billion Horizontal Infrastructure phase 1 – EPCF for Konza
  •         Ksh 1.2 billion Konza Data Centre and Smart City Facilities;
  •         Ksh 5.7 billion Construction of KAIST at Konza Technopolis
  •         Ksh 600 million Government Shared Services
  •         Ksh 475 million Construction of Konza Complex Phase 1 B.
  •         Ksh 1.3 billion National Optic Fibre Backbone Phase II Expansion Cable
  •         Ksh 583 million Last Mile County Connectivity Network

Other key allocations

Other key allocations include:

1)      Ksh 338.2 billion has been allocated to support operations of the National Police Service, Defence, the National Intelligence Service and Prison Services.

2)      Ksh 26.9 billion has been allocated for various implementing Ministries, Departments and Agencies.

3)      Ksh 244.9 billion has been allocated for road infrastructure.

4)      To improve reliability and bring down the cost of power, the sector has been allocated Ksh 62.3 billion.

5)      Ksh 114.9 billion has been allocated to support environment and water conservation and respond to climate change.

6)      Ksh 628.6 billion has been allocated for Social Services.

7)      Ksh 38.2 billion has been set aside for social protection and affirmative actions.

8)      County Governments have been allocated Ksh 442.1 billion to aid in the provision of services at the county level.