, Finance Minister Uhuru Kenyatta has delivered his maiden Budget speech in Parliament.
4.40pm Mr Kenyatta proposes amendment to law that deals with registration of new vehicles
– He says this will encourage vehicle owners to migrate from old to new generation log books
– There will be a replacement fee for those who hand in old log books
– Amend Traffic Act to allow minor offenders to be fined on the spot
4.36pm Mr Kenyatta proposes to amend penal code to outlaw the operations of pyramid schemes
– He proposes to amend laws to reduce listing fee for Initial Public Offers
4.32pm Minister orders VAT withholding agents to issue VAT withholding certificates at time of making payment
– He amends banking Act to allow branchless banking to extend services through agents with wide networks
– Finance Minister amends Kenya Post Office Savings Act to allow it deal in foreign exchange transactions
4.29pm Recipients of pensions amounting to Sh25,000 and below to be tax exempt
– Mr Kenyatta announces a zero rate on taxable goods and services supplied to the Kenya Red Cross
4.27pm Minister has lowered duty on water from 10 to five percent
– Duty on carbonated soft drinks and juices from 10 to seven percent
– Reduce price of portable wines and spirits to reduce reliance on lethal drinks
4.25pm. The government has zero rated duty on bicycles in tandem with motorcycles
– Finance Minister reduces duty on skin care products from 10 to five percent
– Remove duty on jewelry products to make them affordable and accessible to Kenyan women and even men
4.23pm. He grants exemption on duty and zero rate VAT for heat insulated heat tankers to preserve milk
– Reduces import duty on second hand clothing from 3 cents per kg to 20 cents per kg
4.21pm Mr Kenyatta offers incentives for investments made in satellite towns outside of Nairobi, Mombasa and Kisumu
– Import duty exemption on equipment for licensed companies for use on oil, gas and geothermal exploration
– An imposed ban on exports of copper wire cables and aluminum to protect power firms
4.18pm Minister scraps VAT on mobile phone handsets
Mr Kenyatta: Mobile telephony has become essential aspect of day to day life
4.15pm Minister proposes to zero rate VAT taxable on goods and services offered to film makers
-Provide tax deduction of five per cent on computer software
4.12pm. Import duty on yarns zero rated from 10 percent
Mr Kenyatta: The government must be seen to care by supporting industries to continue in business
– Grants exemption of import duty on industrial spare parts
– Removes import duty on asbestos fibres used in manufacture of brake linings
– Minister reduces import duty on synthetic yarns from 10 percent to zero
Mr Kenyatta: The Tourism sector was affected by post-poll violence and ongoing global recession. To revive growth, the government grants exemption of import duty on all four wheel drive vehicles built for tourism purposes
4.08pm The Minister thanks organisations and individuals who made insightful proposals to the Budget
Mr Kenyatta: This budget will not confer tax benefits to a few Kenyans. A Tax harmomisation Task Force has been formed to spell out how to reform Kenya’s tax system.
– The Proposals to enable formulation of a business friendly tax regime for the country
3.55pm Mr Kenyatta: We are focusing on a targeted food subsidy scheme.
-Allocates Sh200m interest free revolving fund for physically disabled traders.
-Creates Sh200m cash transfer to elderly people over 60 years and mentally challenged.
3.53pm Agriculture: He says Kenya to become net food exporter by 2012.
-Sets aside Sh400 million for installation of solar technology in arid and semi arid regions
-Initiating programme to reduce reliance on raid-fed agriculture.
-Government to focus on mechanisation, irrigation, high breed seeds water harvesting to ensure food security in medium term
3.47 For clean environment Sh1.2 billion for tree planting program which covers 20 schools in every constituency
– Green Energy Facility to lower energy costs and consumption costs.
The Minister has allocated an additional Sh1 billion for primary and secondary education.
– Sh1.5 billion for construction of two primary schools in each constituency.
– Sh30 million for construction of one secondary school in each constituency as center of excellence
– Sh2m per constituency to recruit 10 teachers each on contractual terms.
An extra Sh4 billion (or Sh20m) allocated per constituency for construction and equipping health centres in all constituencies
-Sh655m to be allocated to constituencies countrywide for employment of nurses.
-Proper procurement processes at KEMSA expected.
Mr Kenyatta: Sh800m to be lent to private enterprises through KTDC to promote tourism growth
Minister says tax proposals to be made to improve cash flow in tourism sector.
– Additional measures to safeguard exports and tourism against adverse global effects.
– Diversity of products and value addition important for the tourism sector
– Building Kenya requires a healthy population
He has allocated Sh500 million to Youth Development Fund and another Sh500 for Women Enterprise kitty
– Ministry of Special Programmes to initiate re-settlement of communities in Uasin Gichu and Molo
– 19,000 low cost farm houses to be constructed with special preference given to female headed households
Mr Kenyatta: CDF allocation increased by 80 percent through additional funding through roads maintenance levy
– Minister says the measure is to ensure budgetary resources reach people at the constituency level
– CDF has achieved progress in taking development to the people
– To continue benefit, allocating resources amounting to Sh12 billion making each constituency to receive Sh60 million each
– To promote amendment to allow for 22 percent of road maintenance fund for maintenance of constituency roads
– To encourage purchase of laptops through campaign to enable people take advantage of broadband
Mr Kenyatta: The government aims to focus on renewable energy sources to reduce high cost of energy.
-To expand rural electrification programme with Sh7 billion
-To focus on alternative energy sources
-President Kibaki to commission undersea fiber optic cable in Mombasa on Friday
Mr Kenyatta: Fuel levy to be channeled through the Constituency Development Fund.
– Cargo clearing system facing challenges; documentation procedures largely manual.
– Government to establish a single window port system to ensure faster, efficient clearance of cargo.
– Construction of second container terminal to be accelerated.
– New standard gauge railway line to be built from Mombasa to Western, and Uganda.
-As part of stimulus programme, budget aims to allocate resources to infrastructure projects to enhance competitiveness.
-Sh140 billion to be spent on roads, rail ports and energy.
Mr Kenyatta: Treasury has allocated Sh2 billion for reforms under Agenda 4.
– Fast tracking reforms in Judiciary to expedite resolution of commercial and cases. Sh3.1 billion earmarked for Judiciary.
– Sh250m to fund pilot phase of automation of courts and employ 20 commissioners of Assize.
– To enhance community policing by engaging youths in collaboration with chiefs.
– Allocated funds to support this to purchase motorised bicycles of chiefs and youths in community policing.
Mr Kenyatta: The government to monitor project performance in ministries.
– To introduce electronic monitoring project.
– Treasury to monitor project performance at every stage including CDF.
– KRA to be strengthened and integrity to be emphasised.
Mr Kenyatta: I am directing that all Cabinet Minister and other officials entitled to public vehicles shall be allowed one vehicle whose engine capacity shall not exceed 1800 CC.
Mr Kenyatta: I have put a moratorium on purchase of new vehicles unless only under very special circumstances. We will reduce amount of money government is spending on fuel.
Mr Kenyatta: Raising taxes not a prudent option. We have a programme of responsible borrowing.
– Minister allays fears following concerns raised over borrowing from domestic market, saying the government can comfortably borrow in the short term without compromising macro-economic object.
Mr Kenyatta: Our total public debt to peak at 44.5 pc of GDP and dip in subsequent years.
Mr Kenyatta: We will continue to pursue fiscal policy and structural reforms. Budget to stimulate growth, create employment; protect jobs and the poor.
– It is in response to challenges and prevents a slide in economy; provide stimulus designed to cover all parts of the country.
– Expand irrigation based agriculture to ensure food security
– Construct wholesale and fresh produce markets to be constructed countrywide
Mr Kenyatta: The stimulus program is designed to cover all parts of country. A part of the program will construct wholesale and retail markets countrywide
Mr Kenyatta: Theme of the 2009/10 Budget: overcoming today’s challenges for a better tomorrow
Mr Kenyatta: Budget premised on the need to overcome challenges. We must try to return the economy back to growth. It marks the first and bold step towards this.
Mr Kenyatta: We must confront the challenges that continue to constrain our growth.
Mr Kenyatta: We should find strength unity of purpose while focusing on our goal and objectives in line with Vision 2030.
Mr Kenyatta: Outlook is only slightly better in the face of the global economic recession. We project a modest recovery of three percent.
2.48pm Mr Kenyatta lauds President Kibaki and Prime Minister Raila Odinga for their support since he took up the Treasury docket.
2.47pm Mr Kenyatta begins reading the budget speech.
2.38pm Mr Kenyatta enters the Chambers.
2.35pm President Mwai Kibaki arrives in Parliament.
2.25pm Mr Kenyatta arrives at Parliament buildings.
2.20pm Mr Kenyatta leaves his Treasury Building offices.