Budget 2018: The highlights
Treasury secretary Henry Rotich has presented this year’s Sh 3 trillion budget, including the taxation measures expected to finance it. The budget focuses on the Big 4 development agenda, whose key priority areas will be funded while keeping the already high debt sustainable. This, according to Mr Rotich, is expected to propel growth to seven per cent in the next financial year. These are some of the highlights of the budget speech:
* On affordable housing, Mr Rotich to amend the Employment Act. employers to contribute 7.5 per cent for housing while employees to give 0.5 per cent from their salaries
* On manufacturing, import duty on iron ore and steel, paper and paper products increased from 25pc to 35pc, increase meant to make local products more competitive.
* Further, Treasury has allocated Sh3 billion for construction of affordable housing.
* Excise duty on private vehicles above 2500cc diesel and 3000cc petrol goes up from 20pc to 30pc to promote local assembly.
* Tax on mobile money transfer charges increases from 10pc to 12pc, proceeds to fund universal health care. Treasury has further allocated Sh2 billion for primary health care and Sh7 billion for cancer diagnosis equipment and Sh400 million for cancer institute.
* Kisumu, Nyeri, Isiolo and Machakos to participate in a health survey to enable the roll out of a comprehensive health programme.
* On education, technical education gets Sh16 billion to get more instructors and develop curriculum, Sh91 billion for universities. Sh2 billion has been allocated for school feeding programme and Sh5 billion to get more teachers in the basic education sector.
* On ICT, Sh11.9 billion for the digital literacy programme and Sh310 million for digital migration.
* To support for disadvantaged persons: Sh7.9 billion has been allocated for orphans, the elderly to get Sh17.3 billion. –
Source: Daily Nation.