NAIROBI, Kenya, Feb 9 – The Cabinet has approved a Sh100 billion allocation in the 2017/2018 financial year to cater for salary increments for all public servants starting July this year.
While projecting that revenue will hit Sh1.7trillion up from Sh1.5 trillion, the Cabinet meeting chaired by President Uhuru Kenyatta also resolved to provide allocation for the harmonisation of public sector salaries and allowances.
Other allowances catered for include civil service pension, house and hardship allowances, recruitment of 10,000 police officers and the hiring of 5,000 teachers.
“His Excellency President Uhuru Kenyatta on Wednesday, 8th February 2017, at State House Nairobi chaired a Cabinet meeting whose main agenda was to consider and approve the Financial Year 2017/2018 budget estimates for submission to Parliament,” a statement from Statehouse Spokesman Manoah Esipisu said.
“The FY 2017/18 budget and financing proposals were presented by the Cabinet Secretary for the National Treasury Henry Rotich who gave the highlights of the budget proposals,” he further stated.
The country has seen an upsurge in the number of strikes by different sectors demanding increased wages with the latest being the industrial action by doctors which is now in its third month.
Esipisu revealed that donor commitments have been firmed up and disbursements are expected to hit Sh2561.1 billion in both grants and loans.
“To ensure pro-poor growth and sustainable development, the 2017/18 budget will continue to focus on the 2nd Medium Term Plan of the Kenya Vision 2030 and the government priorities under a five-pillar transformation agenda,” he stated.
He indicated that the proposed budget for FY 2017/18 takes into account the recommendations of Parliament on the 2017 Budget Policy Statement and the agreed priorities.
“The allocations in the FY 2017/18 budget will broadly remain the approved Budget Policy Statement 2017.”
Cabinet also approved the hosting of the 56th Session of the Asian-African Legal Consultative Organization.