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"id": 804887,
"url": "http://info.mzalendo.com/api/v0.1/hansard/entries/804887/?format=api",
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"type": "speech",
"speaker_name": "Mr. Henry Rotich",
"speaker_title": "The Cabinet Secretary for the National Treasury",
"speaker": {
"id": 13142,
"legal_name": "Henry Rotich",
"slug": "henry-rotich"
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"content": "Hon. Speaker, currently, there is no penalty or interest on payment of taxes in the Betting, Lotteries and Gaming sector, which has led to non-compliance. In order to ensure compliance and prompt payment of taxes, I propose to introduce a 20 percent penalty and 2 percent interest on late payment of tax in the Betting, Lotteries and Gaming Act. This will enhance the collection of these taxes that are meant to support sports, arts, cultural and social development activities in our country. Hon. Speaker, one of the pillars under the Big Four Plan is to promote manufacturing activities. To achieve this, it is important to support value-addition through measures to retain raw materials like scrap metal in order to protect local manufacturers and stem the tide against vandalism of public infrastructure. In this regard, I propose to introduce an Export Levy of 20 per cent on copper waste and scrap metals. Hon. Speaker, allow me now to turn to how the Government will spend the resources in this Budget. As stated earlier, total spending will increase from Ksh2.3 trillion in the Financial Year 2017/18 to Ksh2.5 trillion in the Financial Year 2018/19. In relation to Gross Domestic Product (GDP), this represents a reduction from 26.8 per cent of GDP to 26.3 per cent, consistent with our fiscal consolidation plan. Despite the planned fiscal consolidation, the resource allocation criteria were aimed at ensuring that funding for the Big Four Plan was prioritised. In total, I have allocated around Kshs460 billion to the Big Four sector drivers and enablers. We have also sustained prioritisation of resources to other pro-poor programmes such as social protection, education, access to electricity and drought mitigation measures. The specific incentives under the Special Economic Zones (SEZ) Act, and other special incentives, together with the Public Private Partnership (PPP) arrangement will draw investors into the manufacturing sector. To catalyse this, the Government will provide enabling infrastructure, including building industrial sheds. To this end, I have allocated Kshs400 million for the Leather Industrial Park development and Kshs400 million for textile development. In order to modernise facilities in Rift Valley Textiles (RIVATEX) and New KCC, we have allocated Kshs1.4 billion and Kshs200 million, respectively. In order to enhance food and nutrition security and modernise agriculture, I have allocated Kshs1.4 billion for strategic food reserves, Kshs1.9 billion for the Kenya Cereal Enhancement Programme, Kshs0.5 billion for mechanisation of agriculture and Kshs900 million for crop diversification. Hon. Speaker, the severe drought that we experienced last year underscores the importance of reducing our reliance on rain-fed agriculture. In order to reduce our vulnerability to drought and bring additional land under crop production, I have allocated a total of Kshs8.5 billion for ongoing irrigation projects in Bura and Mwea, the National Expanded Irrigation Programme and the Smallholder Irrigation Programme, the Galana/Kulalu Irrigation Project, Turkana, and micro-irrigation projects in schools. We will continue to improve accessibility of fertilizers and crop insurance. To this end, I have set aside Kshs4.3 billion for subsidized fertilizers, Kshs300 million to support crop insurance schemes in order to cushion farmers against climate related risks and Kshs300 million for foul army worm mitigation. On subsidised fertilizers, I expect the Ministry of Agriculture to reform the supply chain system and ensure better service to farmers with the ongoing registration of farmers. Hon. Speaker, to further expand access to affordable healthcare, I have allocated Kshs2.0 billion for Free Primary Healthcare, Kshs800 million for Health Insurance Subsidy Programme, and Kshs2.5 billion for the rollout of universal health coverage to four counties on a pilot basis. The electronic version of the Official Hansard Report is for information purposes only. Acertified version of this Report can be obtained from the Hansard Editor."
}