PARLIAMENTARY SERVICE COMMISSION
Parliamentary Budget Office
Operationalizing the Bottom-up
Economic Transformation Agenda
Budget Watch for FY 2023/24 and the Medium Term
September 2023 | Edition No. 16
pg. i
, Disclaimer
The Parliamentary Budget Office (PBO) is a non-partisan professional office of the Parliament of the
Republic of Kenya. The primary function of the Office is to provide professional services in respect of
budget, finance, and economic information to Committees of Parliament.
© Parliamentary Budget Office, 2023
For more information, contact:
The Director,
Parliamentary Budget Office
Parliament of the Republic of Kenya
Protection House, 10th Floor.
P.O. Box 41842 – 00100 GPO
NAIROBI, KENYA
Tel: +254-20-284-8810
Email:
pg. i
, Acknowledgement
The Budget Watch is an annual series produced by the Parliamentary Budget Office (PBO) that disseminates
the assessment of key issues regarding the implementation of the approved budget in a particular financial
year. By examining the government’s priority programmes and projects, the Budget Watch is instrumental in
holding the government to account on its promises and enhance efficiency, effectiveness, equity and
accountability in the collection and utilization of public finances. It is intended to enrich the oversight role of
the Legislature and other stakeholders on management of public resources. This 16th edition of the Budget
Watch has been prepared to facilitate the monitoring of the budget for the Financial Year 2023/2024.
The report was prepared by a team under the overall guidance of Dr. Martin Masinde (Director, PBO), Robert
Nyaga (Senior Deputy Director and Head of Budget Analysis & Expenditure Review Department) and Lucy
Makara (Deputy Director and Head of Senate Affairs & Inter-Fiscal Relations Department).
The report was prepared by staff of Parliamentary Budget Office. Chapter 1 (Introduction), Chapter 2
(Macroeconomic Outlook), and Chapter 3 (Fiscal Policy Outlook) were prepared by the Macroeconomic
Analysis and Statistics Department. Chapter 4 (National Government’s Investment in BETA) was prepared
by the Budget Analysis and Expenditure Review Department and Chapter 5 (Supporting BETA through
Counties) was prepared by the Senate Affairs and Inter-Fiscal Relations Department.
The findings, interpretations and conclusion expressed in this publication are entirely those of the authors
and do not necessarily represent the views of the Parliament of Kenya.
The document can be downloaded from www.parliament.go.ke.
pg. ii
, Table of Contents
Acknowledgement ....................................................................................................................................... ii
List of Acronyms and Abbreviations ........................................................................................................ iv
CHAPTER 0NE: INTRODUCTION ................................................................................................................ 1
CHAPTER TWO: MACROECONOMIC OUTLOOK ...................................................................................... 2
CHAPTER THREE: FISCAL POLICY OUTLOOK ........................................................................................ 5
3.1 Revenue Projections...................................................................................................................... 5
3.2 Expenditure Projections ................................................................................................................. 7
3.3 Consolidated Funds Services ........................................................................................................ 8
3.4 Financing the Fiscal Deficit .......................................................................................................... 10
CHAPTER FOUR: NATIONAL GOVERNMENT INVESTMENTS IN BETA ............................................... 13
4.1 Overview of Ministerial Expenditures for FY 2023/24 .................................................................. 13
4.2 Alignment of Expenditures to BETA Policies and Strategic Interventions .................................... 15
4.2.1 Education Sector ................................................................................................................. 15
4.2.2 Energy, Infrastructure and ICT Sector ................................................................................. 16
4.2.3 Governance, Justice, Law and Order Sector ....................................................................... 21
4.2.4 Health Sector ....................................................................................................................... 22
4.2.5 Environment Protection, Water and Natural Resources Sector ........................................... 23
4.2.6 Agriculture, Rural and Urban Development Sector .............................................................. 24
4.2.7 Social Protection, Culture and Recreation Sector ................................................................ 26
4.2.8 General Economic and Commercial Affairs Sector .............................................................. 27
CHAPTER FIVE: SUPPORTING BETA THROUGH COUNTIES ............................................................... 30
5.1 Transfers to County Governments for FY 2023/24 ...................................................................... 30
5.1.1 The County Government Additional Allocations (CGAA) ..................................................... 30
5.1.2 The Equalization Fund ......................................................................................................... 31
5.2 Alignment of County Expenditures to BETA Strategic Interventions ............................................ 33
5.2.1 County Health Services for BETA ........................................................................................ 33
5.2.2 Food Security Through Counties ......................................................................................... 35
5.3 County Spending Risks ............................................................................................................... 38
5.4 County Public Funds and Investments ........................................................................................ 39
pg. iii
Parliamentary Budget Office
Operationalizing the Bottom-up
Economic Transformation Agenda
Budget Watch for FY 2023/24 and the Medium Term
September 2023 | Edition No. 16
pg. i
, Disclaimer
The Parliamentary Budget Office (PBO) is a non-partisan professional office of the Parliament of the
Republic of Kenya. The primary function of the Office is to provide professional services in respect of
budget, finance, and economic information to Committees of Parliament.
© Parliamentary Budget Office, 2023
For more information, contact:
The Director,
Parliamentary Budget Office
Parliament of the Republic of Kenya
Protection House, 10th Floor.
P.O. Box 41842 – 00100 GPO
NAIROBI, KENYA
Tel: +254-20-284-8810
Email:
pg. i
, Acknowledgement
The Budget Watch is an annual series produced by the Parliamentary Budget Office (PBO) that disseminates
the assessment of key issues regarding the implementation of the approved budget in a particular financial
year. By examining the government’s priority programmes and projects, the Budget Watch is instrumental in
holding the government to account on its promises and enhance efficiency, effectiveness, equity and
accountability in the collection and utilization of public finances. It is intended to enrich the oversight role of
the Legislature and other stakeholders on management of public resources. This 16th edition of the Budget
Watch has been prepared to facilitate the monitoring of the budget for the Financial Year 2023/2024.
The report was prepared by a team under the overall guidance of Dr. Martin Masinde (Director, PBO), Robert
Nyaga (Senior Deputy Director and Head of Budget Analysis & Expenditure Review Department) and Lucy
Makara (Deputy Director and Head of Senate Affairs & Inter-Fiscal Relations Department).
The report was prepared by staff of Parliamentary Budget Office. Chapter 1 (Introduction), Chapter 2
(Macroeconomic Outlook), and Chapter 3 (Fiscal Policy Outlook) were prepared by the Macroeconomic
Analysis and Statistics Department. Chapter 4 (National Government’s Investment in BETA) was prepared
by the Budget Analysis and Expenditure Review Department and Chapter 5 (Supporting BETA through
Counties) was prepared by the Senate Affairs and Inter-Fiscal Relations Department.
The findings, interpretations and conclusion expressed in this publication are entirely those of the authors
and do not necessarily represent the views of the Parliament of Kenya.
The document can be downloaded from www.parliament.go.ke.
pg. ii
, Table of Contents
Acknowledgement ....................................................................................................................................... ii
List of Acronyms and Abbreviations ........................................................................................................ iv
CHAPTER 0NE: INTRODUCTION ................................................................................................................ 1
CHAPTER TWO: MACROECONOMIC OUTLOOK ...................................................................................... 2
CHAPTER THREE: FISCAL POLICY OUTLOOK ........................................................................................ 5
3.1 Revenue Projections...................................................................................................................... 5
3.2 Expenditure Projections ................................................................................................................. 7
3.3 Consolidated Funds Services ........................................................................................................ 8
3.4 Financing the Fiscal Deficit .......................................................................................................... 10
CHAPTER FOUR: NATIONAL GOVERNMENT INVESTMENTS IN BETA ............................................... 13
4.1 Overview of Ministerial Expenditures for FY 2023/24 .................................................................. 13
4.2 Alignment of Expenditures to BETA Policies and Strategic Interventions .................................... 15
4.2.1 Education Sector ................................................................................................................. 15
4.2.2 Energy, Infrastructure and ICT Sector ................................................................................. 16
4.2.3 Governance, Justice, Law and Order Sector ....................................................................... 21
4.2.4 Health Sector ....................................................................................................................... 22
4.2.5 Environment Protection, Water and Natural Resources Sector ........................................... 23
4.2.6 Agriculture, Rural and Urban Development Sector .............................................................. 24
4.2.7 Social Protection, Culture and Recreation Sector ................................................................ 26
4.2.8 General Economic and Commercial Affairs Sector .............................................................. 27
CHAPTER FIVE: SUPPORTING BETA THROUGH COUNTIES ............................................................... 30
5.1 Transfers to County Governments for FY 2023/24 ...................................................................... 30
5.1.1 The County Government Additional Allocations (CGAA) ..................................................... 30
5.1.2 The Equalization Fund ......................................................................................................... 31
5.2 Alignment of County Expenditures to BETA Strategic Interventions ............................................ 33
5.2.1 County Health Services for BETA ........................................................................................ 33
5.2.2 Food Security Through Counties ......................................................................................... 35
5.3 County Spending Risks ............................................................................................................... 38
5.4 County Public Funds and Investments ........................................................................................ 39
pg. iii
