Budget Bulletin 2023 24

Path to recovery, stabilisation
and growth – Tough choices

National budget bulletin
June 2023
www.pwc.com/ke
In this bulletin…
Economy 03
Tax
Tax Proposals
1 06
07
Customs and international trade 11
Other non-tax legislative updates 12
Devolution 15
Sectoral Analysis 18
Financial services 19
Infrastructure 22
Consumer business 28
Health 32
Agriculture 35
Technology and digital economy 39
East Africa highlights 41
Path to recovery, stabilisation and growth – Tough choices June 2023

PwC 2
1
Economy

PwC 3
Economic inclusivity as the way to recovery
Table 2: Expenditure allocation
• The Government has projected economic growth of 50% 44%
5.5% for FY 2023/2024. This is against a backdrop of 43%
global economic slowdown, elevated global inflation, 40%
persistent supply chain disruptions and prolonged 27% 26%
30%
drought. The total expenditure is set to increase from 20% 18%
KES 3.38 trillion in FY 2022/2023 to KES 3.67 trillion in 20%
10% 12%
FY 2023/2024 with a projected ordinary revenue
10%
increase from KES 2.19 trillion to KES 2.57 trillion.
• The Government has projected the fiscal deficit to fall
0%
Development Recurrent Consolidated Fund Service Counties
from the current KES 824 billion (about 5.8% of GDP) to
KES 718 billion (4.4% of GDP) in FY 2022/23. To 2023/24 2022/23
achieve this, KRA will need to collect KES 380 billion
more in FY 2023/2024. The deficit will be funded by
borrowing KES 587 billion from the domestic market and
• Expenditure has been projected to increase by KES • The projected deficit of KES 718 billion will have to be met
290 billion while total revenue (Appropriation in Aid through borrowing - raising the total debt ceiling towards KES
KES 131 billion from the international market.
and Ordinary) is projected to increase by KES 401 10 trillion. The Government is keen on changing the debt
billion. To ensure the fiscal deficit projections are ceiling from an absolute number to a percentage of GDP. A 2
met, the Government is keen to ensure that ordinary billion Eurobond is also maturing in FY 2023/23.
revenue targets are met. Failure to meet the targets
will result in additional borrowing. Funding of the • The Government plans to mobilise revenue by initiating
deficit from the domestic market (KES 587 billion) is reforms in tax policy and expanding the tax base. Key
likely to face a challenge or become expensive due proposed tax measures include: Increase in VAT of
to the limited market capacity as Central Bank of petroleum products from 8% to 16%; zero rating of LPG
Kenya (CBK) has warned. Access to the products from VAT; increase of turnover tax from 1% to 3%
international markets is likely to be constrained. with the upper threshold lowered to 25%; harmonization of
corporate tax for both residents and non-residents at a rate of
• Expenditure allocation has remained largely 30%; introduction of a 5% withholding tax on digital content
constant as compared to the previous year. monetization; introduction of 1.5% of employees’ gross salary
Development expenditure continues to remain below to support the affordable housing program and create
the Public Fund Management Act (PFM) requirement employment for the youth among others.
of 30%.
PwC 4
Economic inclusivity as the way to recovery
• The inflation rate in Kenya rose to 8% in May 2023, up • The Government’s Bottom Up Economic Transformation Agenda
from a ten-month low of 7.9% in the prior month. Increase (BETA) is geared towards economic turn around and inclusive Key points
in VAT of petroleum products from 8% to 16% is likely to growth. The five sectors earmarked to have the largest impact and
have an effect on inflation due to its far reaching
consequences.
linkages to the economy have been allocated as follows:
Agriculture transformation and inclusive growth – KES 49.9 billion;
• The Government is keen on stabilizing
the fiscal deficit. Revenue mobilization
Transforming the Micro, Small and Medium Enterprise (MSME)
and expenditure rationalization will be
• The monetary policy committee of the Central Bank of economy – KES 10.6 billion; Housing and settlement – KES 35.3
key to achieve that.
Kenya (CBK) raised the central bank rate to 9.5 percent in billion; Affordable healthcare to all – KES 141.2 billion and Digital
superhighway and creative economy – KES 15.1 billion.
March 2023. This coupled with improved agricultural
production as a result of easing of the prolonged drought,
• How Government will balance between
supported by the fertilizer subsidy program and the • Allocation to other thematic areas is as follows: Education – KES revenue mobilization; expenditure
importation of key food items under the duty free window 628.6 billion; National Security – KES 332.8 billion; Manufacturing rationalization; public debt management
eased domestic pressure on food items and reduced sector – KES 26.9 billion; Infrastructure development – KES 244.9 and other externalities will be key in
inflation. To further anchor inflation expectations the billion; Energy – KES 62.3 billion among others. achieving the economic growth
Government will implement the following reforms: refining projected.
macro economic forecasting frameworks, improving the
functioning of the interbank market and continued Contacts • Government should continue seeking
improvement of communication on monetary policy new ways of increasing revenue –
decisions. predictability in tax system, tax base
Dr. Benson Okundi
expansion, simplification of the tax
Partner,
• The Government is keen on addressing the issue of Government and Public Sector Leader for East Africa
process is called for.
pending bills which as of 31 March 2023 amounted to
KES 537.2 billion. Aware of the positive impact this will
+254 20 285 5241
benson.okundi@pwc.com
• Addressing of inflation and cost of living
have on the economy, the National Treasury is in the is key, the Government should
process of establishing a pending bills verification constantly keep this under watch and
committee to carry out an analysis of the pending bills and Anthony Njeeh Kelvin Wainaina manage it using fiscal and monetary
Senior Manager, Assurance Manager, Assurance
advice on settlement. Adhering of the PFM Act, 2012 on policies.
expenditure spending and clearing of pending bills as a +254 20 285 5301 +254 20 285 5569
first charge on the budget of public entities will be key. anthony.njeeh@pwc.com kelvin.wainana@pwc.com
• Debt sustainability management is key
for the Government.

PwC 5
2
Tax

PwC 6
Tax proposals anchored towards revenue mobilisation
The Cabinet Secretary (CS), National Treasury proposed to Reduction of withholding tax rate applicable to Tax administration
amend several provisions that were included in the 2023 payment to digital content creators
Finance Bill. We have extensively discussed this year’s
Provision data-management and reporting
Finance Bill in our 5 May 2023 Tax Alert. The Finance Bill The Finance Bill 2023 proposed to subject payments to
had elicited a lot of discussion due to the tax measures of data
digital content creators to withholding tax at 15%. The CS
intended to increase the tax rates and also subject certain addressed concerns raised by the content creators and has
new streams of income to tax. The CS proposed an amendment to the Tax
reduced the withholding tax rate to 5% - aligning to the Procedures Act that would require the Commissioner
withholding tax rate applicable to professional and General to provide a data management and
Below are some of the significant highlights captured in the management fees paid to residents. reporting system that taxpayers would use to
FY 2023/2024 budget.
electronically submit standardized transactional data
in real time.
Corporate taxes
This is provision will improve efficiency within the tax
system and increase the use of technology, but may
Aligning the taxation of Permanent Retained the turnover tax lower threshold at also result in penalties to the taxpayer for failure to
Establishment (PE) and subsidiaries KES 1 million comply with timelines.
The CS has proposed the introduction of tax on repatriated In a bid to expand the tax base, the Finance Bill 2023
profits at the rate of 15%.This proposal means that the proposed to lower the threshold of turnover tax to KES
effective tax rate for non resident with permanent 500,000. To cushion taxpayers earning below KES 1
establishment in Kenya will be 40.5% similar to companies million, the CS proposed to retain the current threshold of
with non resident shareholders 40.5%. KES 1 million but lowered the upper threshold from KES 50
million to KES 25 million.
The Finance Bill proposed the reduction of the corporate
tax rate of a PE from 37.5% to 30% and introduced tax on
repatriated profits. However, the tax rate of the repatriated
profits was missing from the Finance Bill.

PwC 7
Personal taxes
Current PAYE tax rates Proposed PAYE tax rates Affordable housing levy
Tax band Monthly income (KES) Tax rate Tax band Monthly income (KES) Tax rate
First
Next
Above
24,000
8,333
32,333
The CS proposes an amendment to the ITA to adjust the

10%
25%
30%
First
Next
Next
Next
24,000
8,333
467,667
300,000
10%
25%
30%
32.5%
1.5%
The CS proposes to allocate a budget of KES 35.3 billion to
individual rates of tax (commonly known as PAYE), by the housing programme to reduce proliferation of slums
introducing two additional tax bands i.e., 32.5% applicable Above 800,000 35%
and create more jobs for the youth.
to individuals earning monthly incomes between KES
500,000 and KES 800,000, and 35% applicable to To fund this initiative, the CS proposes to amend the
individuals earning monthly incomes of more than KES Employment Act, 2007 to introduce an affordable housing
The CS stated that up to 79.7% of the 3.3 million workers in
800,000. levy payable by employers and employees at an uncapped
Kenya fall below the 30% tax bracket. The two new bands
According to the National Treasury, this move is aimed at will affect approximately 26,676 employees who constitute rate of 1.5% of an employee’s gross monthly salary
making the tax bands more progressive in sharing the tax 0.8% of the total employed workers. departure from previous housing fund.
burden across different income groups.
As such, it remains to be seen how much additional tax This proposed levy will be an additional salary deduction
Overall, the proposed changes will result in additional PAYE
revenue will be generated from the two new tax bands and that will reduce the net take home pay of employees.
revenue for the Government and reduced net take home
whether the Government will achieve its objective in
pay for individuals. For illustrative purposes, individuals
making the tax system more progressive.
earning monthly incomes of KES 100,000, KES 600,000
and KES 1,000,000 will experience a reduction of
approximately 2%, 3% and 5% respectively in net pay.

PwC 8
Value Added Tax Contacts

The CS has retained most of the proposals contained in ‘Removal’ of VAT on exported services Titus Mukora
the Finance Bill, 2023. Below are some of the new changes Partner/Director
proposed by the CS: AddItionally, the CS proposed the ‘removal’ of VAT on exported titus.mukora@pwc.com
services. Whereas this is a welcome move, we note that the
Job Kabochi
Zero rating of Liquid Petroleum Gas (LPG) term ‘remove’ used by the CS is not anchored in the VAT law
Partner
and leaves
The CS proposed to zero rate VAT on LPG. Whereas the Bill job.kabochi@pwc.com
room for ambiguity as to whether the proposed amendment
proposed to exempt LPG from VAT, it is refreshing to note that shall result to either zero rating or exemption from VAT. Edna Gitachu
the CS has appreciated the fact that VAT exemption is laden However, we note that the Bill had proposed to exempt exported Associate Director
with hidden sticking costs. services from VAT. edna.gitachu@pwc.com
Gideon Rotich
The proposal to zero rate VAT on LPG is a much welcome move This year’s proposed amendments are anchored in revenue
Associate Director
as suppliers will be eligible to deduct/claim input tax, ensuring mobilization and expansion of the tax base to create
gideon.rotich@pwc.com
that mwananchi enjoys reprieve from VAT. This move will lead a simple, broad-based and fair VAT regime.
to a reduction in the product cost, making it more affordable. Nicholas Kahiro
Additionally, LPG being a cleaner source of energy is healthy Senior Manager
and environmentally friendly. nicholas.x.kahiro@pwc.com
Shreya Shah
Introduction of VAT exemption on machinery and Senior Manager
equipment purchased locally for use in shreya.shah@pwc.com
pharmaceuticals Corazon Ongoro
Senior Manager
The CS proposed to extend exemption from VAT, on machinery
corazon.ongoro@pwc.com
and equipment purchased locally for use in manufacture of
pharmaceuticals. Currently, such exemption is applicable on Michael Wachinga
imported plant and machinery only. This is in line with the Manager
Government’s agenda to promote local manufacturers, create michael.w.wachinga@pwc.com
employment as well as ensure access to quality and affordable Ben Kangangi
healthcare. Associate
ben.kangangi@pwc.com
PwC 9
Excise Duty
Excise duty continues to feature prominently as a Reduction of excise duty rate on money Increase of excise duty rate on Betting, Gaming,
preferred measure to broaden the tax base and raise
transfer services Lottery and Prize Competition
revenue for the Government. In line with this preference,
the CS has retained most of the proposals contained in Currently, excise duty at the rate of 12% is Currently, an excise duty of 7.5% is applicable on
the Finance Bill, 2023. chargeable on fees charged for money transfer betting, gaming, lottery and prize competition. The
services by cellular phone service providers. The Bill had proposed to increase the rate to 20%.
However, the CS has proposed the below new
Finance Bill had proposed increasing the excise
amendments; However, the CS in his budget speech proposed the
duty rate to 15% as well as expanding the scope to
Reduction of excise duty rate on imported fish include fees charged by payment service providers reduction from 20% to 12.5% on betting, gaming, lottery
licensed under the National Payment System Act, and prize competition.
The Finance Bill had proposed to introduce excise duty at 2011.
the rate of 20% on imported fish. The CS has proposed to The increase in rate is in line with the Government's
reduce the rate to 10%, in a bid to align with other agenda to discourage participation in these activities by
In his budget speech, the CS has proposed to Kenyans, especially young people, school-age children
excisable products. The introduction of excise duty on reduce the rate to 10% in line with the Government’s
imported fish aligns with the Government's agenda to and vulnerable members of society.
agenda to encourage financial inclusivity,
protect local fish industries which is a major livelihood encourage retail transactions and promote
source for many Kenyans. economic activity for MSMEs.

PwC 10
Customs & International Trade
Incentives for manufacturers and farmers

Kenya is an East African Community (EAC) Partner State. Accordingly, changes to its customs laws are published through an
EAC Gazette Notice (GN) at the end of June each year and take effect on 1 July 2023. The CS highlighted some proposals
presented by Kenya during pre-budget consultations, which will be effective on 1 July 2023.
• Duty remission will apply for one year on importation of wheat, raw materials for the manufacture of parts used in auto assembly
(e.g. leaf springs and radiators, Completely Knocked Down (CKD) kits for motorcycle assembly, inputs for the manufacture of
animal feed, baby diapers, footwear products and roofing tiles). Additionally, inputs for assembly of smartphones and other
cellular phones will also enjoy duty remission.
• Stays of application of import duty rates per the EAC Common External Tariff (CET) will apply for one year on: Rice (35%),
imported iron and steel products (35%), vegetable products (35%), baby diapers (35%), leather and footwear products (35%),
paper and paper products (35%), articles of timber (e.g. plywood and particleboard USD 120/MT – USD 200/MT), furniture
(45%), articles of plastic and rubber (35%), smartphones (25%), and billets (10%). Interestingly, one of the reasons for the
introduction of a four-band EAC CET (version 2022) was to minimize the request for stays by partner states, but it seems this
trend persists.
EPZ/SEZ incentives
The CS National Treasury has proposed to amend the Export Processing Zones (EPZ) Act and the Special Economic Zones (SEZ)
Act to exempt from import duty, goods sold in the local market by EPZs and SEZs to the extent that they incorporate raw
materials/inputs from within the Customs Territory (EAC). It’s worth noting that EPZs and SEZs already enjoy tax incentives on their
raw materials that are not available to ordinary businesses. Exempting their supplies within the customs union from import duty may
result in an uneven playing field for manufacturers outside the preferential economic zones.
Counties violate free market protocol

The CS highlighted complaints emanating from EAC Partner States in relation to charges applied by Counties on inward transfers of
goods from within the Customs Union. Such charges violate the EAC law and Common Market Protocol and expose Kenya to a
trade disruption risk in case of retaliation from its partners. The CS indicated that the National Assembly is set to formulate a county
revenue bill to inter alia provide governance around revenue generation for counties – and hopefully curb potential diplomatic tiffs.

PwC 11
Other non-tax legislative reforms to consider
The National Treasury indicated that the government is considering the following non- National Rating Reforms
tax legislative amendments:
• Proposal to repeal the Valuation for Rating Act (Cap.266) and Rating Act (Cap 267)
Payment Services Reforms via the National Rating Bill, 2022 which provides for, among others, standards in the
• To modernize Kenya’s payments legal and regulatory framework in line with
way rating and valuation is conducted in the country and payment of Contribution in
Lieu of Rates (CILOR). Importantly, the Bill would also align property rating legal
emerging trends and innovations and in line with the National Payments Strategy
regime with the devolved system of governance.
2022-2025, the Central Bank of Kenya (CBK) will undertake review of the National
Payment System Act No. 39 of 2011 and the National Payment System Regulations, SACCO Reforms
2014.
• An amendment to the SACCO Societies Act No. 14 of 2008 to provide for licensing
Public Finance Reforms and supervision of Shared Sacco Services which will enable small SACCOs to
• To make debt management more sustainable, there is a proposal to
achieve economies of scale while at the same time mainstreaming regulatory
compliance in a cost-effective manner. It has further been proposed that the Act to be
amend the Public Finance Management Act No.18 of 2012 to change the public
amended to secure the financial stability of SACCOs, by providing a framework
debt ceiling from a numerical number to a debt anchor in form of a ratio of public
for appointment of trustees to the Deposit Guarantee Fund for SACCOs in Kenya.
debt to Gross Domestic Product (GDP) in present value terms. Currently, Kenya has
a debt ceiling set in absolute terms at KES 10 trillion. Insurance Reforms
• The introduction of the Public Finance Management (Disaster Management Fund) • Proposed amendment to the Insurance Act (Cap. 487) to introduce offences and
Regulations 2022 to establish the Disaster Management Fund to strengthen disaster penalties relating to the management of insurers by directors and senior
risk management in the country. management.
State Corporation Reforms • Additional amendment to enhance the efficiency of the Insurance Regulatory Authority
• There is a proposal to repeal the Privatization Act No. 2 of 2005 by introducing the
which has rolled out a macro-insurance scheme to increase penetration to individuals
with low income.
Privatization Bill, 2023 with the aim of streamlining privatization processes and to
restructure state corporations/state owned enterprises. Competition Reforms
Unclaimed Financial Assets Reforms • To support the start-up economy and digital businesses, the Competition Authority of
• Proposed amendment to the Unclaimed Financial Assets Authority Act No. 40
Kenya (CAK) will exempt MSMEs from merger notifications. The CAK will also monitor
and conduct surveillance audits in the retail, insurance, manufacturing and agro-
of 2011 to allow for claimants to designate beneficiaries of
processing sectors to protect MSMEs from abuse of buyer power.
unclaimed assets. Currently, the Act does not provide for claimants to designate a
beneficiary of their assets or to a cause of their choice and therefore any claim must • Abuse of dominance practices such as excessive pricing, price discrimination,
be paid to the claimant. predatory pricing and margin squeeze will be monitored to ensure a level playing field.

PwC 12
Achievements in the current financial year and legislative plans for the next
financial year were cited in the 2023/2024 budget.
Digital Credit Regulations

• The CBK introduced the Central Bank (Digital Credit
Providers) Regulations in 2022 which provide the licensing and
oversight of previously unregulated Digital Credit Providers (DCPs). The
CBK will continue to work with other agencies and regulators including
the Office of the Data Protection Commissioner to ensure all DCPs are
brought into the regulatory perimeter to protect consumers.
Central Securities Depository Upgrade

• The CBK will soon launch the upgraded Central
Securities Depository (DhowCSD) to improve financial market liquidity
and enhance operational efficiency in the domestic debt market. This
will help scale services to the public, market participants and support
diaspora investors via a versatile and highly scalable digital solution
with capacity to deliver seamless investor experience and convenience.
Capital Markets Regulations

• The CS cited the introduction of the Capital Markets (Public Offers
Listing and Disclosures) Regulations 2022 which will enable MSME's to
raise debt and equity capital through the Nairobi Securities Exchange
(NSE).
• The Capital Markets (Investment-based Crowdfunding) Regulations
2022 which were gazetted earlier this year will enable start-ups to raise
capital from both local and international investors.

PwC 13
Investment REIT
• The LAPTRUST Income Real Estate Investment Trust (“I-REIT”) is the first I-REIT
Contacts:
by a pension fund at the NSE by LAPTRUST, Kenya’s oldest pension scheme. It Janet Lavuna
will provide investors with a unique opportunity to invest in a diversified portfolio of Associate Director, Tax Controversy
income-generating real estate assets. and Dispute Resolution
janet.lavuna@pwc.com
Public Investment Regulations
• The Public Finance Management (Public Investment Management) Regulations Caroline Kipkulei
were passed in 2022, providing the National and County Governments and their Manager,
entities with a standardized approach in project cycle management to enhance Legal Business Solutions
transparency. caroline.kipkulei@pwc.com
• This includes the development and rolling out of the Public
Investment Management Information System (PIMIS) that automates the Herbert Njoroge
public investment management process. Manager,
Legal Business Solutions
herbert.njoroge@pwc.com
Policy Initiatives
Finally, the 2023/2024 budget highlighted the following policy initiatives: Ronnie Sigei
Senior Associate,
• National Pension Policy: Government is working on a policy which will enhance Legal Business Solutions
portability of schemes and mitigate fragmentation in the sector. ronnie.sigei@pwc.com
• The Kenya National Entrepreneurs Saving Trust (KNEST): The National
Jade Makory
Treasury has established this scheme to facilitate voluntary pension contributions
Senior Associate,
for individuals in the informal sector.
Legal Business Solutions
• Procurement: The Government’s priority is to review procurement policy and jade.makory@pwc.com
procedures to enhance good governance and achieve efficiency given limited
financial resources. Plans to roll out its e-Government procurement program is set Lavelyne Nusu
for December 2023 to manage all government procurement and asset disposal Associate,
processes digitally. Access to Government Procurement Opportunities (AGPO) Legal Business Solutions
portal also being re-engineered to improve prompt payment and liquidity access. lavelyne.nusu@pwc.com

PwC 14
3
Devolution:
How the Counties have
been affected

PwC 15
Resourcing County Governments
Equitable Share Bottom-Up Economic Transformation Agenda (BETA)

The equitable share has increased to KES 385.4 Strategic Sectors
billion in FY 2023/24 (KES 370 billion in FY 2022/23):
KES 442.1 billion • In addition to the county allocations, investment by the National
• This being 23% of the latest audited accounts of Government in the BETA strategic sectors (Agriculture, MSMEs,
revenue (FY 2019/20) approved by Parliament. total allocations Healthcare, Housing and Settlement, Digital Superhighway and
The proposed allocation is above the 15% Creative Economy) will supplement county development plans as these
Constitutional minimum threshold ((Article 203(2)). sectors are largely devolved functions.
Conditional Allocations • Out of KES 26.9 billion allocated to manufacturing, KES 4.7 billion will
support establishment of County Integrated Agro-Industrial Parks.
The County Governments will receive conditional
allocations of KES 56.7 billion compared to KES 37.1
KES 385.4 billion
B in FY 2022/23. Own Source Revenue (OSR) Enhancement
equitable share
Equalization Fund
• Property rates account for largest share of OSR. The National Rating
Bill is under legislation in Parliament. The Bill once enacted will require
The Equalization Fund allocation is KES 10.9 billion counties to develop updated valuation rolls to facilitate levying of
compared to KES 7.1 billion in FY 2022/23. property rates at market prices as opposed to current rates based on
outdated valuation rolls developed by defunct local authorities. Use of old
Mineral Royalties valuation rolls has contributed to OSR underperformance.
Expected to be shared among the National (70%), KES 56.7 billion
County (20%) and Communities (10%): • County Governments’ (Revenue Raising Process) Bill, 2023 outlines
conditional & the process to be followed by counties in exercising their power under
• A framework submitted to Parliament to facilitate
unconditional grants Articles 209 and 210 of the Constitution to impose, vary or waive taxes,
sharing of KES 2.9 billion outstanding royalties fees, levies, Contribution in Lieu of Rates (CILOR) and other charges.
among 32 counties. This will eliminate cases of multiple charges within Counties and across
the East Africa Community borders.

PwC 16
Other policy and legislative reforms
Pending Bills - County Governments reported pending bills of KES 159.7 Transfer of Functions between National Government and County
billion (as of 31st March 2023) Governments
• Establishment of a Pending Bills Verification Committee to carry out a thorough analysis • Draft legislation to operationalize Articles 187 and 189 of the Constitution on
of pending bills and advise on how the bills will be settled. Once the outstanding pending Transfer of Functions and Cooperation between the National and the County
bills are cleared, the National Treasury will direct all entities to ensure strict adherence to Governments and amongst County Governments will be submitted for Cabinet
Public Finance Management Act, 2012 and clear pending bills as a first charge on the approval and onward transmission to Parliament.
budget of the concerned entity in the subsequent financial year.
Procurement reforms – e-Government Procurement System (e-GP) to be

rolled by December 2023 at National and County Governments.
• e-GP will enhance efficiency and transparency in the procurement functions, ease cost of
doing business with government, and has capabilities of monitoring and tracking of all
procurement and asset disposal.
Public Investment Management (PIM) Regulations, 2022 - to provide the

National and County Governments and their entities with a standardized
approach in project cycle management Contacts
• The regulations will enhance transparency, accountability, prudent use of public Dr. Benson Okundi Stella Muysawa
resources and public participation. Partner Senior Associate
Government and Public Sector Advisory
Public Investment Management (PIM) Regulations, 2022 - to provide the Leader for East Africa stella.musyawa@pwc.com
National and County Governments and their entities with a standardized benson.okundi@pwc.com
approach in project cycle management
Paul Otsola Barnabas Kiprotich
• The regulations will enhance transparency, accountability, prudent use of public Senior Manager Senior Associate
resources and public participation. Advisory Advisory
paul.otsola@pwc.com barnabas.kiprotich@pwc.com

PwC 17
4
Sectoral Analysis

PwC 18
Financial Services
Improving affordability of payment services
Resilience and stability of the banking sector
To improve quality, access and affordability of payment services, the CBK plans to:
The Cabinet Secretary noted that the banking sector remained resilient in 2022 and is ● undertake a comprehensive review of the National Payment System Act, 2011
expected to remain stable in 2023. The sector recorded growth in customer deposits, higher and National Payment System Regulations, 2014 to modernise Kenya’s
pre tax profits and improvement in the non-performing loans ratio. The presence of strong payments legal and regulatory framework, and
banking sector players has provided opportunities for consolidation and regional expansion.
● develop and implement an interoperable payments platform to unlock cost
Enhancing consumer protection effective, real time, and retail payments across the banks, payment service
providers, card schemes and other regulated financial institutions.
Following the introduction of the Digital Credit Providers Regulations, 2022, the Cabinet
Secretary stated that 32 Digital Credit Providers (DCPs) were licensed by 31 March 2023
with other DCPs at different stages of the approval process. He also noted that the Central Tax measures
Bank of Kenya (CBK) was working with other agencies including the Office of the Data
Protection Commissioner to ensure all DCPs are licenced. ● The Cabinet Secretary has retained the proposal to amend the Excise
Duty Act as introduced by the Finance Bill, 2023 to decrease the
The CS announced that the Kenya Deposit Insurance Corporation (KDIC) was in the Excise Duty rate on fees charged for money transfer services by
process of reviewing the current coverage limit of KES 500,000 in order to enhance banks, money transfer agencies, and other financial service providers
protection of depositors. In addition, KDIC has developed an Alternative Dispute Resolution from 20% to 15%. This will reduce the cost of transacting within formal
(ADR) framework to address disputes between financial institutions that have been closed financial channels which will ultimately increase the volume and value
and their respective stakeholders to fast track the release of available resources and of transactions.
winding up banks under liquidation.
● Additionally, the CS has proposed to reduce the Excise Duty rate on
To address the challenges being faced in the SACCO sector, the CS stated that the Sacco
fees charged by payment service providers licensed under the
Societies Regulatory Authority (SASRA) is working on amendments to the Sacco Societies
National Payment System Act, 2011 from 15% to 10%. The reduction
Act which will provide for licensing and supervision of shared SACCO services platform and
in the proposed rate will encourage retail transactions at a more
provide a framework for appointment of trustees to the Deposit Guarantee Fund (DGF) for
SACCOs. The cost-sharing digital platform will enable small SACCOs to achieve economies affordable rate and promote economic activity for Micro Small and
of scale, regulatory compliance in a cost-effective manner and establish a mechanism for Medium Enterprises.
financially distressed SACCOs.

PwC 19
Financial Services
Growing capital markets access Pensions and insurance
Upgrade of the Central Securities Depository Increasing pension coverage insurance penetration through the Micro-insurance
Framework, targeted at low income individuals.
‘DhowCSD’ The Cabinet Secretary acknowledged that only 22%
Texto deste destaque of the working population was covered under a
The Cabinet Secretary noted that the CBK plans to launch an In line with the Government’s focus on key sectors,
pension scheme. The proposed reforms seek to the IRA will also seek to strengthen private insurer
upgraded Central Securities Depository code dubbed “DhowCSD”
increase the coverage by focusing on the informal role in Universal Health Coverage (UHC), crop and
which is expected to improve financial market liquidity and
sector which constitutes the majority of the livestock insurance and support insurance for
enhance operational efficiency in the domestic debt market. The
workforce. MSMEs.
Central Securities Depository is also expected to scale up services
to the public, market participants and diaspora investors.
Through the Kenya National Entrepreneurs Saving The Cabinet Secretary also submitted the Insurance
New Capital Markets Regulations Trust (KNEST), strategic partnerships and diverse (Amendment) Bill, 2023 that seeks to provide
pensions solutions, the Government is seeking to deterrent measures for offences relating to the
In order to support Micro, Small and Medium Enterprises (MSMEs) facilitate voluntary pension contributions for self- management of an insurer. The Bill also seeks to
and Kenyan start ups in accessing alternative funding, the Capital employed individuals and those in the informal strengthen IRA’s authority in regulating the industry.
Markets Authority has developed the following regulations: sector.
● Capital Markets (Public Offers and Disclosures) Regulations, The pension reforms also seek to make the
2023 which will provide a framework for MSMEs to raise debt administration of Public Service pensions more
and equity capital through the Nairobi Securities Exchange, efficient through technology and digitisation of
and services. The Cabinet Secretary indicated that the
● The Capital Markets (Investment Based Crowdfunding) National Treasury will invest in modern digital
Regulations, 2022 which will support Kenyan startups to raise solutions that will streamline the pension processes
and improve user functionality.
finance from both global and local investors.
Enhancing insurance penetration
It is expected that MSMEs and start-ups will benefit from this
expansion in the source of funding in terms of increased access The Cabinet Secretary noted that the insurance
sector has been growing consistently in the last two
and reduced cost.
years. To further enhance the growth, the Insurance
Regulatory Authority (IRA) intends to increase
PwC 20
Financial Services
Other proposals
Unclaimed Financial Assets amendment

The Cabinet Secretary seeks to amend the Unclaimed Financial Assets Authority Act
to allow claimants to designate beneficiaries of their unclaimed assets or a cause of
their choice.
Enhancement of KYC and CDD processes
The CBK has enhanced the banking sector Know Your Customer (KYC) and
customer due diligence (CDD) processes to reduce money laundering vulnerability.
Contacts
Richard Njoroge Brian Ngunjiri Daniel Kiilu
Partner, Assurance Partner, Assurance Senior Manager, Assurance
richard.njoroge@pwc.com brian.ngunjiri@pwc.com daniel.kiilui@pwc.com

PwC 21
Infrastructure

PwC 22
Infrastructure highlights
Introduction
Investment in critical infrastructure
KES 2.6 bn
The government will continue to expand
critical infrastructure in roads, railways, sea and airports to
create an enabling environment for economic recovery and KES 62.3 bn
employment creation.
CS, National Treasury and Economic Planning,
Professor Njuguna Ndung’u KES 41.5 bn
KES 244.9 bn
With uncertainty still looming in the economy, the Government has identified infrastructure as one of
the key economic enablers. Being President Ruto’s first budget, infrastructure has received a
generous allocation of KES 351.3 billion although slightly lower than the FY22/23 allocation of KES
368.5 billion.
The Government plans to continue expanding critical infrastructure in roads, railways, sea, and
airports to create an enabling environment for the economic recovery of the country. A total of KES
244.9 billion (70% of the total infrastructure budget) has been allocated to the construction of roads Road Construction
and bridges, an indication of the Government’s plans to intensify national connectivity to promote
access throughout the country in a bid to foster economic growth. Rail and ports construction
Now a common theme, Private Public Partnerships (PPPs) have been emphasized as a key tool for Reliable energy supply
funding and implementing infrastructure development - we will now see the introduction of Development in Dongo Kundu Special Economic Zone
the Project Facilitation Fund (PFF).

PwC 23
Roads, railways and ports
In a bid to boost mobility for the efficient movement of Rail and ports construction (continued)
people and goods, as well as provide accessibility to a
wide variety of commercial and social activities, the • Development of Nairobi Railway City – KES 0.9 bn
Government plans to continue to intensify its • Acquisition of ferries for Lake Victoria – KES 0.3 bn
investment in the construction of roads, railways, and
ports.
The budgetary allocation for roads has increased from
KES
212.5 billion in FY22/23 to KES 244.9 billion in
FY23/23. Below is the breakdown of the allocation on
roads, railways and ports:
Roads Funding
•
•
•
Construction of roads and bridges – KES 113.9 bn
Maintenance of roads – KES 50.9 bn
Rehabilitation of roads – KES 80.1 bn
244.9 bn
Funding for roads and bridges
Rail and Ports Funding
construction, maintenance, and
• Standard Gauge Railway– KES 37.4 bn
rehabilitation of roads
• Nairobi Bus Rapid Transport Project – KES 1.1 bn
• Rehabilitation of roads – KES 80.1 bn
• Construction and expansion of airports and airstrips Kenya Airways (KQ)
– KES 0.7 bn Long reliant on Government support, KQ is poised to
• Rehabilitation of Locomotives – KES 0.6 bn be (re)positioned as a Pan-African carrier to help it
reduce dependency on the exchequer. It is expected
• Smart driving license – KES 0.5 bn that this will see the continued effort to arrive at a
merger with South African Airlines (SAA), though the
CS did not share the details of this plan.

PwC 24
Energy
Liquified petroleum gas, power distribution and reliable energy supply
Reliable and affordable energy • Reduction of system losses from the current 22.4% to 14.4% by end of June
2025
As promised in the Kenya Kwanza manifesto, the CS proposed measures to lower the cost
of Liquefied petroleum gas (LPG) to the consumer. Apart from zero rating, the Government
• Establishment of a governance framework at KPLC that gives the private sector
fair representation
also proposed to remove Import Declaration Fees (IDF) and Railway Development Levy
(RDL) fees and levies from LPG. It also aims to continue to attract private sector investment There should be clear guidelines on how these reforms can be achieved, to ensure
into the sector which will see the implementation of a common user bulk storage and successful implementation, without transferring the burden from one institution to
handling facility for LPG to help enhance price and market stability. another.
The Government has also entered into a Memorandum of Understanding (MoU) with
Governments of oil producing countries for the supply of petroleum products on extended
credit periods of up to 180 days. This MoU is expected to:
• ease the monthly demand on the US dollar given the current high demand in relation to
Reliable energy supply
40
KES 62.3 bn
petroleum products 33.8
has been allocated to reliable energy
35
• reduce the cost of petroleum products by leveraging on the economies of scale due to supply in the FY23/24 budget
longer supplier contracts 30
• reduce currency speculation as there will be time to activate the interbank foreign
KES in billions
25
exchange market
• reduce supply disruption; and 20
• allow for restructuring of the fuel pricing which will be dependent on market conditions. 15
12.1 11.4
The Government has also suggested a number of reforms to Kenya Power and Lighting
Company (KPLC) to improve its efficiency, increase their revenue and reduce their costs. 10
These reforms include: 3.2

5
• Transfer of transmission assets to Kenya Electricity Transmission Company (KETRACO)
• Settlement of the outstanding Rural Electrification Schemes (RES) operations and -
National grid system Rural electrification Geothermal generation Alternative Energy
maintenance costs deficit of KES 19.4 billion as of June 2022 Technologies

PwC 25
Affordable housing
Affordable housing
The Government has been very vocal on turning around the housing challenge in Kenya,
and has allocated a total of KES 35.2 billion for the housing program in FY24. The
housing gap will be reduced by facilitating delivery of 250,000 houses per annum and
enabling affordable housing mortgages. To actualize this, the Government plans on
putting in place policies and administrative reforms to lower the cost of construction and
improve access to affordable housing finance while creating jobs, while funding the
exercise through the implementation of a 1.5% affordable housing levy of employee pay,
payable by both the employee and employer.
To ensure the success of the initiative the following allocation has been recommended to
the National Assembly.
Affordable housing programme
8 KES 7.3 bn
7
6
KES 5.0 bn
KES in billion
5
4 KES 3.2 bn KES 3.3 bn
3
2
1
-
Kenya Urban Programme (KenUP)
Kenya Mortgage Refinance Company
Construction of Affordable Housing Units
Construction of Social Housing Units

PwC 26
Public Private Partnerships
Private sector participation in infrastructure development
Public Private Partnerships The National Treasury has embarked on developing a 10 y

ear Infrastructure Plan to support delivery & prioritisation of
As part of measures to manage the Government’s fiscal
deficit, the Government has strengthened the public-private
partnership (PPP) framework to leverage on the private
KES 100 bn projects - an estimated KES 100 billion in private sector
capital will be mobilised.
sector expertise and financing in infrastructure

developments.
Private sector capital to The National Treasury will also leverage on local private
sector participation through pension funds, capital markets
The Government intends to operationalise the project

be mobilized to support and commercial bank in scaling up private sector capital
into infrastructure projects, while also encouraging local
content into these developments.
facilitation fund (PFF). This fund will support project
preparation through the provision of viability gap funding
delivery of priority
These investments will help in the delivery of projects
which will ensure bankability of the PPP projects and
provide the necessary security to the private sector. This
infrastructure projects across sectors, including housing for the security forces
under PPP arrangements.
fund will also cover any contingent liabilities that may arise
from these PPP projects and provide the much-needed
liquidity to meet payment obligations. Contacts Mose Kombo
Associate
The Government will also attract the private sector to invest Mose.kombo@pwc.com
Isaac Otolo
in the construction of bulk water supply, which is
Partner
estimated to increase water supply by 200,000 cubic Peter Kiprono
Isaac.otolo@pwc.com
meters per day. Associate
Edward Kerich Peter.kiprono@pwc.com
The National Treasury in conjuction with the Ministry of
Partner
Water have developed a Water Purchase Agreement
Edward.kerich@pwc.com
which will enable private sector participation in the water
sector, perhaps to the great strides with independent
Gideon Rotich
power producers (IPPs), where its seen as regional model.
Associate Director
Gideon.rotich@pwc.com

PwC 27
Consumer Business

PwC 28
Manufacturing
The Government has adopted a value chain approach through the Bottom-Up initiative that will address the bottlenecks that
impede the growth of the manufacturing sector.
Allocations to promote enterprise and revival of key business sectors
Key Allocations Revival of Cash Crops Policy Interventions

A total of KES 26.9 billion has been allocated The Government is making further ● Kenyans will import inputs for the
under various implementing Ministries, investments towards the revival and manufacture of animal feeds duty-free
Departments and Agencies. Key allocations enhancement of output of various cash under the EAC Duty Remission scheme
include: crops, whose budget allocations are as for one year.
● KES 4.7 billion – Establishment of follows:
County Integrated Agro-Industrial Parks ● Imported iron and steel products shall
● KES 3.1 billion – Supporting Access to ● KES 120 million – Cotton continue to attract a duty rate of 35% with
Finance and Enterprise Recovery Project ● KES 62 million – Coconut the corresponding specific rates for a
● KES 3.0 billion – Construction of six ● KES 35 million – Cashewnut further one year for Kenya.
Export Processing Zones flagship ● KES 150 million – Pyrethrum
● Raw material and capital goods to be
projects Other Allocations imported duty-free; imported intermediate
● KES 1.8 billion – Construction of an ● KES 300 million – Kenya Youth goods to attract duty at a rate of 10%;
Effluent Treatment Plant (Kenanie) Employment and Opportunities while finished goods not available in the
● KES 1.5 billion – Kenya Industry and ● KES 332 million – Construction of region will attract a 25% import duty. All
Entrepreneurship Project Industrial Research Laboratories finished goods available in the region in
● KES 500 million – Development of ● KES 182.9 million – Constituency sufficient quantities to attract a common
Special Economic Zones (SEZ) Textile Industrial Development Centres external tariff rate of 35%.
Park, Naivasha
It is important to address the issue of pending bills, which stands at a value of KES 537.2 billion as at March 2023 (KES 79.3 billion of which are
under Ministries, Departments and Agencies). The delay in settling payments of pending bills has led to the deterioration of financial positions of
businesses in particular Micro, Small and Medium Enterprises, including businesses owned by Women, Youth and Persons with disabilities.

PwC 29
Micro, Small and Medium Enterprises (MSMEs)
The Government considers SMEs as one of the five strategic pillars envisaged to Competition Authority of Kenya (CAK) incentives
have the largest impact and linkages to the economy. to ease the cost of doing business and minimise
compliance costs for MSMEs
1
The Financial Inclusion Fund (The Hustler Fund)
MSMEs exempted from merger notifications, thus
The Financial Inclusion Fund, commonly known as the Hustler Fund, was set up in November 2022 to provide enabling startups, digital businesses, among
affordable credit to individuals and MSMEs. KES 11 billion has already been invested in the fund, and the Cabinet others. Monitor and conduct surveillance audits
Secretary (CS) proposed the allocation of an additional KES 10 billion to the fund. specifically in manufacturing and agro-processing
to protect MSMEs from incidences and abuse of
Since its launch, 43.5 million transactions have been made on the Hustler Fund by an estimated 16.07 million buyer power.
customers, of which 7.1 million are repeat customers. Individuals and MSMEs have borrowed a total of KES 30.8 billion
from the Fund, saved KES 1.5 billion as mandatory savings, and KES 17 million on a voluntary basis.
On 1 June 2023, the Government launched the second product of the Financial Inclusion Fund, aimed at access to
finance via lending groups such as chamas and saccos, who can now borrow loans of KES 20,000 – KES 1.0 million. 2 Implement codes of practice to ensure that MSMEs
in the retail and insurance sectors are protected
from powerful buyers.
Additional MSME Interventions
The National Treasury has reengineered the Access to Government Procurement Opportunities (AGPO) portal to
enable real-time registration and monitoring, alongside directed all procuring entities to ensure prompt payment of all
contracts successfully implemented under the AGPO. This is with an aim of facilitating access to Government
procurement opportunities, empowering MSMEs and enabling businesses owned by the target groups to access
3 Screen and investigate infractions such as
suspected cartels or abuse of dominance conducts
such as excessive pricing, price discrimination,
predatory pricing and margin squeeze to ensure a
liquidity promptly. level playing field.
To further support MSMEs, the Government has allocated the following in the current budget:
●
●
●
●
KES 300 million – SMEs in manufacturing
KES 182.8 million – Women Enterprise Fund
KES 175 million – Youth Enterprise Development Fund
KES 192 million – Uwezo Fund
4 Actualize the initiative earlier started with the
National Assembly to address the issue of price
fixing by professional services to make the fee
competitive and improve quality of services.

30
Tourism and Air Travel
The tourism sector has recovered significantly since the onset of the COVID-19 pandemic. While the previous budget focused on
the recovery of the sector, the current budget focuses on a job-creating tourism industry.
Tourism
While the FY 2022/23 budget focused on the recovery of the
tourism sector in light of the effects of the COVID-19 pandemic, the
FY 2023/24 budget focuses on a Bottom-Up, job-creating tourism
industry. To this end, the CS proposed an allocation of KES 4.1
billion for the Tourism Fund and KES 2 billion for the Tourism
Promotion Fund; a 28% and 11% increase, respectively, when
compared to the allocations in the FY 2022/23 budget.
Air Travel
KES 727 million has been allocated for the construction and
expansion of airports and airstrips.
Contacts
The Government aims to turn around Kenya Airways by improving Michael Mugasa
efficiencies, reducing costs and increasing revenue in order to Partner, Assurance
position the airline as a profitable Pan-African carrier, thereby michael.mugasa@pwc.com
reducing the airline’s dependence on budgetary support.
Alex Murage
Associate Director, Consulting
alex.murage@pwc.com
Shanice Obong’o
KES 6.1 billion Management Consultant, Advisory
Amount allocated to the tourism sector – KES 4.1 shanice.obongo@pwc.com
billion for the Tourism Fund, and KES 2 billion for the Gakenia Siika
Tourism Promotion Fund Management Consultant, Advisory
gakenia.siika@pwc.com

PwC 31
Healthcare
Access to quality and affordable healthcare remains critical for socio – economic development
Highlights of healthcare budget
In the FY 2023/2024 budget, Government continues to prioritize

investments towards achieving Universal Health Coverage by
ensuring; The health sector
• National Health Insurance Fund (NHIF) coverage for all has been allocated
Kenyans through a bottom up approach and by reforming
NHIF and National Social Security Fund (NSSF) to level the KES 141.2 billion
playing field among all Kenyans in terms of health and old to enhance
age security;
• Investment in primary healthcare systems through
healthcare
establishment of stakeholder managed primary health care services across
funds as strategic purchasers at each level 4 facility;
the country.
• Build up of supply management systems;
• Management of healthcare workforce and harmonize working
conditions and terms;
-5
• Investment in health products and integrated information
communication and technology systems to enhance
telemedicine and health management information systems;
• Establishment and operationalization of emergency medical
Budget decline to KES 141.2 billion from KES 148
billion in FY 2022/2023
fund and establishing a fund to bridge the financial gaps in
the wake of diminishing donor funding in support of key
programmes including HIV/AIDS, TB, Malaria, RH/FP,
vaccines and nutrition.
%
PwC 32
Healthcare
Government aims to revitalize and sustain the aspirations of Universal Health Coverage (UHC)
The key sector programme priorities for

the FY 2023/2024 – FY 2025/26 include: Health care remains a core
thematic area of the
Preventive, Promotive and Reproductive, Maternal,
Newborn, Child and Adolescent Health (RMNCAH) government
Services; National Referral and Specialized
Services; Health Research and Development;
General Administration and Support Services; and
Health Policy, Standards and Regulations. The FY 2023/2024 national budget is within the
current Government’s Bottom-Up Economic
The prioritized programmes and projects
Transformation Agenda (BETA).
aim at achieving improved accessibility,
affordability of health services, reduction The Agenda is geared towards economic
of health inequalities and optimal turnaround and inclusive growth, and aims to
utilization of health services across the increase investments in at least five sectors
sector. envisaged to have the largest impact and
linkages to the economy as well as on
household welfare.
The Government will therefore promote Allocations in healthcare budget

investment in five core thematic areas that are • Curative and reproductive health – KES 21 billion
expected to have the highest impact at the • Health research and innovations – KES 4.9 billion
bottom of the economy; • Preventive and promotive health services – KES 7.3 billion
• Medical services – KES 116.6 billion
These include: Agricultural Transformation;
Micro, Small and Medium Enterprise (MSME); • Health policy, standards and regulations – KES 1.8 billion
Housing and Settlement; Healthcare; Digital • National referral and specialized services – KES 63.5 billion
Superhighway and Creative Industry. • Health resources development and innovation – KES 15 billion
.
PwC 33
Healthcare
Specific allocations for various activities and programmes
include:
● KES 1.7 billion for medical cover for elderly and severely disabled
persons in the society
● KES 24.8 billion to lower cases of HIV/AIDS, malaria and tuberculosis
proposed under The Global Fund
● KES 4.6 billion to enhance vaccine and immunization program
To promote early diagnosis and management of cancer

● KES 1.9 billion for construction of cancer centre at Kisii Level 5
Hospital
● KES 500 million to strengthen cancer centre management at Kenyatta
National Hospital
● KES 155 million for establishment of regional cancer centres
To improve health service delivery

● KES 21.6 billion - Kenyatta National Hospital
● KES 12.8 billion - Moi Teaching and Referral Hospital
● KES 8.8 billion - Kenya Medical Training College (KMTC)
● KES 3.3 billion - Kenya Medical Research Institute
● KES 2.4 billion - Construction of Kenya national Hospital banks and
pediatric Centres
● KES 1.4 billion - Equipping of laboratories and classrooms for KMTC
Contacts
● KES 1.1 billion - Renovation of Kenyatta National Hospital
● KES 1.0 billion - Procurement of family planning and reproductive Stella Githinji Joseph Kagiri Virginia Maneno
health commodities Associate Director, Senior Manager, Manager,
● KES 1.0 billion - Procurement of equipment for the National blood Government & Public Sector Government & Public Sector Government & Public Sector
transfusion Service stella.githinji@pwc.com joseph.kagiri@pwc.com virginia.manenoi@pwc.com
● KES 352 million - Digital Health Platform

PwC 34
Agriculture

PwC 35
Revamping agriculture through subsidy, value chain
development and other interventions
Overview Proposed interventions and allocations

Agriculture allocation in FY
The agricultural sector remains the backbone of Kenya’s The proposed interventions intended to improve
economy contributing an average of 21.4% of the GDP agricultural productivity over the medium term include 2023/2024 - KES 49.9 Billion vs
directly and up to 33% of GDP indirectly. As a result the among others:
agricultural sector continues to play a fundamental role in • access to credit for working capital to farmers through FY 2022/2023 63.9 Billion
Kenya’s economy contributing approximately 65% of cooperatives
Kenya’s total exports. • deployment of modern agricultural risk management
instruments that guarantee minimum returns
It continues to have the highest employment contribution; • input finance and intensive agricultural extension
employing more than 40% of total population and 70% of support projects
the rural population. • enhanced productivity of key value chains (maize 8 -
15 bags an acre, dairy 2.5kg- 7.5kg a cow a day)
Despite this, agricultural productivity of the country has • reduction of dependence on basic food imports by
been declining. This has been occasioned by the 30%
prolonged droughts as well as the doubling of the global • revamp underperforming and collapsed export crops
fertilizer prices due to appreciation of the dollar and while expanding emerging ones
disruption of the supply chain.
As one of the cornerstones of the Kenyan economy, The major funding has been channelled to:
development of the agriculture sector is a key focus area. National Agricultural Value Chain Development Project –
There should be an urgent but gradual shift in Kenyan KES 8.6 billion, Blue Economy Priority Projects – KES 4.5
agriculture towards technology, information and knowledge billion, Fertilizer Subsidy Programme – KES 4.5 billion,
management systems for farming systems, integrated Kenya Cereal Enhancement Programme – KES 2.1
value chains and favorable policymaking. billion, National Agricultural and Rural Inclusivity Project
KES 2.7 billion, Emergency Locusts Response – KES 4.5
billion and Improve Livestock Production – KES 4.5 billion

PwC 36
Government focus
The government aims at ensuring food security and through interventions that will circumvent
the challenge of climate change and create jobs through direct and indirect involvement in
agriculture. Rolling out specific interventions to this end will require synchronization of
agriculture strategy and food security to harness maximum benefit from the combined
allocation of KES 87.9 billion. In particular, the focus on the critical pillars below will significantly
impact positive outcomes.
● Productivity – the government should continuously focus on high yield crops, improved
agriculture, land reforms etc to enhance productivity. Irrigation allocated KES1.4 billion and
will require further financing given the capital intensive nature.
● Governance – extensions services and the reach to the farmers is currently close to
collapsing and will require stimulation. This will help in dissemination of the required
information on both crop and animal husbandry.
● Climate smart agriculture – the continued decline in productivity has lately been attributed
largely to the vagaries of climate change. Acceleration of climate smart agriculture,
especially through adoption of resistant crop varieties and water management measures,
will enhance the ability to counteract effects of climate change.
The other critical focus area on creation of aggregation centres in the 47 counties will enhance
market linkage and reduce post harvest losses. However, concerted effort will be required in
synergism of the county interventions with the national government focus areas in order to
achieve the intended results.
Value chains are also anchored in the agriculture strategy like in prior year but with the
allocation of KES 8.6 billion it remains to be seen how National Agricultural Value Chain
Development Project will link up with other interventions under different strategies - particularly
fast tracking agro-processing.

PwC 37
We note that many policies and schemes have been set up to tackle the challenges The budget statement emphasizes agricultural
faced by various stakeholders in the agricultural sector. However, certain areas need transformation and inclusive growth
further intervention and attention from policymakers across various sub-sectors:
• There is a need to increase agri-exports by strengthening the registration and
regulation process. Greater focus on research and development, and innovation is
necessary in the face of climate change. Agriculture infrastructure also needs to be
modernised and improved, considering the requirements. The Kenyan agriculture
sector is yet to reach its mechanisation potential. Hence, it is necessary to promote
the inclusion of technology on a larger scale while reducing the dependency on
rainfall through the widespread adoption of irrigation, especially micro-irrigation.
• Access to agriculture finance and insurance also remains a challenge for many
farmers who lack awareness and infrastructure. The last-mile delivery of these
services needs to be strengthened along with the development of more customised
products suited to farmer needs and a more robust and effective agricultural
extension service.
• Agriculture marketing and linkages play a crucial role in farmer remuneration and
profitability. Gaps in the value chain linkage hinder price realisation by farmers.
Another area of improvement is farmers’ access to market information and technical
support. Agro-processing needs to be promoted to strengthen linkages.
• A key aspect of overall growth in the sector is going to be innovation and public-
private partnerships (PPPs). Policies and incentives that are oriented towards the
promotion of private sector participation and innovation need to be in place. Thus, it is Contacts:
necessary to build a conducive policy environment, which would support the holistic
Simon Mutinda Titus Rotich Nelly Muriungi
and sustainable growth of the agriculture sector.
Partner Senior Manager Manager
simon.mutinda@pwc.com titus.rotich@pwc.com nelly.muriungi@pwc.com

PwC 38
Technology and Digital Economy
Doubling down on increased digitisation and automation
In support of the government’s bottom-up economic transformation agenda, the current budget has
earmarked investments towards digitisation and automation to spur productivity and Digitisation Platforms
competitiveness, reducing information asymmetry and easing access to markets. The budget also
seeks to boost revenue collection through automated Value Added Tax (VAT) systems. Kenya continues to benefit from digitisation of Government services in
service delivery. Some of the key implementation initiatives highlighted in
Allocation Initiatives the budget are as follows:
KES 600 million Government Shared Services • digitisation of 3,750 government services so far and targeting to
onboard a total of 5,000 services by the end of 2023
KES 755 million Digitisation of Land Registries • development of digital platforms to streamline public service pensioner
processes and improve service delivery
KES 352 million Digital Health Platform • digitisation of land registries
• development of a digital health platform, and;
KES 400 million Digital Literacy Program and ICT Integration in Secondary Schools • Digital Literacy programme and ICT integration in secondary schools.
KES 4.8 billion Konza Technopolis - Horizontal Infrastructure Phase 1
KES 1.2 billion Konza Technopolis - Data Centre and Smart City Facilities
KES 5.7 billion

Konza Technopolis - Construction of Kenya Advanced Institute of ICT Initiatives
Science and Technology
KES 475 million
KES 1.3 billion

Konza Technopolis - Construction of Konza Complex Phase 1B
National Optic Fibre Backbone Phase II Expansion Cable

16.1bn
KES 583 million Last Mile County Connectivity Network. FY 23/24

PwC 39
Technology and Digital Economy
Digitisation Platforms Perspective
• Kenya Revenue Authority (KRA) - electronic The Government is keen on digital transformation to improve citizen
submission of standardised data and reporting. service delivery through infrastructure development and digitisation
• Central Bank of Kenya (CBK) Payment System: of its services.
– Review National Payment System Act With increasing digitisation, service delivery will evolve how citizens
2011 and National Payment System interact with Government. Digitally enabled transformation will drive
Regulations 2014 tremendous value for economic transformation.
– Development of interoperable payments
platform for retail payments across banks, Successfully harnessing large scale government digital
payment service providers and card transformations can however be an overwhelming proposition.
schemes and other regulated financial Transformations are undertaken amidst a myriad of concerns around
institutions fit-for-purpose implementations, navigating cybersecurity, and data
privacy risks, and ensuring business continuity.
• CBK Central Securities Depository (CSD) -
digital platform (DhowCSD) for enhanced An outcome driven and citizen centric approach to leveraging digital
investor experience and convenience. is imperative to improve public services and create a better
• Sacco Societies Regulatory (SASRA) - experience for citizens and businesses.
Licensing of cost-sharing digital Shared
Services platform to support digitisation of Connect the government "why" with the technology "how" and align
smaller SACCOs. regulation, policy, modern platforms, operating model and workforce
design, security and risk, and digital product innovation to drive
sustained outcomes.
Contacts
Conrad Siteyi Jane Muli
Laolu Akindele Senior Manager, Manager,
Partner, Technology Advisory Technology Advisory Technology Advisory
laolu.x.akindele@pwc.com conrad.siteyi@pwc.com jane.muli@pwc.com

PwC 40
5
East Africa Highlights

PwC 41
East Africa highlights
Tanzania
Summary of growth in FY 2022/2023 2023 economic constraints Revenue policies

Despite the economic challenges caused by the Like many other countries, Tanzania suffered from The government is keen to increase revenue in FY
Ukraine-Russia war and resurgence of COVID-19 in shortage of US dollar, caused by four major factors: 2023/2024 using the following strategies;
China, the economy performed satisfactorily in 2022. ● Ongoing conflict between Russia and Ukraine
● Improve investment and business environment
Real GDP growth was 4.7% compared to 4.9% in 2021. which led to an increase in the prices of goods
and continue amending various laws to
and services globally;
In 2023, Tanzania’s GDP is projected to grow by 5.2% increase private sector participation in business
reinforced by growth of credit to the private sector, ● Tightening of US monetary policy which and investment;
improving business and investment conditions, focused on raising interest rates that influenced ● To widen the tax base by registering
rebounding of tourism activities as well as prudent investors to direct their capital to the US and businesses and new taxpayers as well as
monetary and fiscal policies caused US dollar shortages in other countries; continue implementing various measures to
reduce tax evasion and create awareness on
● Resumption of economic activity after the voluntary tax payment;
Economic drivers in FY 2022/20233 effects of COVID-19 pandemic, which increased ● To strengthen and encourage the use of ICT
The growth of the GDP was mostly driven by agriculture the demand for US dollars compared to the systems for the collection of Government
(15.6%), construction (11.8%), manufacturing activities amount available in the financial markets revenue;
(8.1%), arts and entertainment (19%), mining and ● Effects of climate change which reduced
● Continue to encourage the use of the
quarrying (10.9%), finance and insurance (9.2%), Government Electronic Payment Gateway
production especially in developing countries,
lodging and food service (9.0%) and power supply (GePG) system by ministries and other
and increased demand for importation of goods
(7.6%) are among the economic activities that government institutions and ensure usage of
and services using US dollars.
registered rapid expansion. control number in all government transactions;
● Ensure proper use of Electronic Fiscal Device
(EFD) to increase efficiency in tax collection.

PwC 42
Tanzania
Revenue Policies (Cont’d)

● To limit tax exemptions below 1% of GDP by assessing
the legal framework used to provide and manage tax
incentives and sensitise investment using non-tax
incentives such as land, provision of water, roads and
energy infrastructure;
● Conduct research aiming at strengthening the collection
of Government revenue;
● Continue to strengthen the systems and management of
public institutions, agencies and entities to increase
efficiency and ensure eligible contributions are timely
submitted to the consolidated fund;
● Continue to raise public awareness to encourage
investment in the domestic government bonds market;
● Strengthen cooperation with development partners
including implementing contractual agreements to
facilitate access to grants and loans as planned;
● Utilise opportunity resulting from credit rating exercise to
raise additional resources from international financial and
capital markets for investing in strategic development
projects; and
● Continue to implement the Strategy to Finance
Development Projects using Alternative Project Financing
(APF) to increase the scope of access to funds for the
implementation of development projects.

PwC 43
Tanzania
Government priorities for FY 2023/2024

The Government will continue to implement the flagship projects that are expected to have large multiplier effects in the economy. In the FY 2023/2024 budget the government has
specifically focused on five priority areas as presented below:

PwC 44
Tanzania
Key tax highlights
Income Tax ● VAT Exemptions include:

Value Added Tax
● Exclusion of (i) issuance of shares and (ii) transfer
of shares in a Tanzanian entity from change in ● Increase the threshold from TZS 100 million to TZS - Inputs used to manufacture
control provisions (Section 56) i.e. the same will 200 million and gradually increase to TZS 500 insecticides and acaricides under HS
not result in a deemed disposal of assets and million. The measure is intended to reduce code 2916.32.00
liabilities of that company at market value. compliance burden to SMEs while increasing - Imported prefabricated structures
government revenue by lessening TRA’s used by the poultry farmers under HS
● Exemption from Capital Gains Tax on internal
administration on small players and increasing focus code 9406.20.90
restructuring of the mining companies in
on large players. - Sale and lease of aircraft, aircraft
accordance with the Framework Agreement
● Expansion of the VAT deferment scheme to capture engine or parts by a local operator of
entered into between the Government and the
domestically manufactured capital goods and cease air transportation
investor to form a partnership entity.
VAT deferment on importation after 3 years (i.e. by 1 - Supply of precious metals, gemstones
● Capital gains derived by small property sellers to July 2026). The intention is to attract manufacturing and other precious stones at buying
be taxed based on sale value (at a rate of 3%) and ensure availability of capital goods locally at centres, mineral markets and gem
rather than profits (which were taxed at 10%). affordable prices. houses designated by the Mining
● Capital gains derived by small property sellers to ● Amendment of the exemption schedule under the Commission under the Mining Act or
be taxed based on sale value rather than profits VAT Act to align with the HS codes in the current refinery situated in Mainland Tanzania
version of the Custom External Tariff (CET) - Inputs used to manufacture packaging
● Removal of the requirement for individual tenants handbook of 2022. materials under headings 3902 and
to withhold tax on rental payments unless such ● Zero rate VAT on textile products manufactured using 3907
payments are made in conducting business. domestically produced cotton for a period of one - Moulds used solely by pharmaceutical
● Introduction of income tax at a rate of 2% of year. manufacturers; and
payments to Artisanal and Small Miners (ASM) ● Extension of zero rate on locally manufactured - Inclusion of gaming odds and gaming
fertiliser for another year.
● Income tax on Verified Emission Reduction (VER) software as part of gaming supply that
scheme at 10% qualifies for exemption

PwC 45
Tanzania
Key tax highlights – Cont’d
Excise Duty Other levies and taxes ● Transfer the mandate to collect billboard fees
● Proposed inflationary adjustments on specific ● Proposal to exempt refinery centres from payment of from the commissioner general of TRA to the
excise duty tariffs for non-petroleum products as the clearance (or inspection) fee of 1%. The aim is to president’s office regional administration and
follows: promote small-scale refining of minerals in Tanzania. local government aimed at increasing
- 20% excise duty increase on both efficiency.
imported and locally manufactured beer ● Change in gaming tax rates including a reduction of
and tobacco products; and tax rate to 18% (from 25%) on gross gaming revenue ● Integrate property tax and land rent to be paid
- 10% excise duty increase on all other for forty machines site operations. through one control number and revenue
non-petroleum products with the collected be remitted to the consolidated fund.
exception of domestically manufactured ● Increase road and fuel toll by 100 shillings per litre (of
wines, spirits and confectionery products petrol and diesel). ● Empower the Minister responsible for local
due to the national strategy to enhance government to collect service levy (0.3% of
growth of the industrial economy. ● Increase property taxes to reflect the actual value of turnover) from Electronic Money Issuance
the property as highlighted below. Licenses (EMI) on behalf of the local
● The Government proposes to freeze the excise - from TZS 12,000 to TZS 18,000 for a normal government authorities and distribute the
duty fixed tariffs on non-petroleum products for building, and collected amount to the respective councils.
the next 3 years from 1 July 2023 (i.e. up to 30 - from TZS 60,000 to TZS 90,000 per each
June 2026). The aim is to improve the investment storey building. ● Removal of mobile money transaction levy on
climate and enhance economic stability. sending and receiving monies electronically
● Reduce billboard fees on non-illuminated boards but also to increase the levy on withdrawals
● Amendment of the Excise (Management and from TZS 10,000 to TZS 7,000 per square feet; and by 50% of the current rates (i.e. to a minimum
Tariff) Act to harmonise and align to the HS codes on illuminated, from TZS 13,000 to TZS 10,000 per of TZS 15 and a maximum of TZS 3,000).
in the current version of the Custom External square feet.
Tariff (CET) handbook of 2022.
● Billboards with business names and placed within the
respective commercial areas will not be subject to
billboard fees.
PwC 46
Uganda
Summary of growth in FY 2022/2023 • Agriculture has also performed strongly growing by

5.0%, despite the dry spell in the first quarter of the
• The economy is projected to grow by 5.5%
financial year. In particular, food crops, livestock and
compared to 4.6% last year. This year’s performance
fishing performed well.
compares favourably with the average growth rate
for Sub-Saharan Africa estimated at 3.6% for
calendar year 2023. The size of the economy is
• Industry grew at 3.9%, driven largely by
manufacturing and construction activities, especially
estimated at UGX 184.3 trillion, compared to UGX
in the oil and gas industry.
162.9 trillion last year. This is equivalent to USD 49.4
billion compared to USD 45.6 billion last year.
Government priorities for FY 2023/2024
• Inflation has significantly decreased since October
• Urgent completion of key public investments with
2022 when it peaked at 10.7%. Last month, the pace
higher multiplier effects on the attainment of National
at which prices were rising slowed down to 6.2%.
Development Plan III targets and the National
• Total private sector credit increased from UGX 19.5 Resistance Movement 2021-2026;
trillion in May 2022 to UGX 20.5 trillion in April 2023,
representing annual growth of 4.8%. The growth in • Enhanced revenue mobilization and collections;
lending to industry and agriculture was 6.2% and
3.3%, respectively. Trade and personal lending • Full-scale operationalisation of the Parish
recorded annual growth of 14.1% and 19.1%, Development Model (PDM); and
respectively.
• Enhanced government's efficiency and effectiveness
Economic drivers in FY 2022/2023 through rationalisation of public expenditure, payroll,
audit etc.
• Economic growth is accounted to good performance
of the services sector which grew by 6.2%,
compared to 4.1% in 2022.

PwC 47
Uganda: Key tax highlights
Income Tax Excise Duty

Value Added Tax
• Winnings derived from sports betting and pool betting • Extending the exemption of excise duty to
• Expansion of electronic services and digital services to
deleted from the definition of property income incoming calls from The United Republic of
include all services supplied through an online or digital
Tanzania (USD 0.09 per minute)
network and to introduce new services such as streaming • 15% withholding tax (“WHT”) will not apply to gaming
platforms, subscription-based services, cab-hailing however, the gaming tax has been revised from 20%
• Decrease of excise duty on opaque beer (from
services and cloud storage services to 30%
20% to 8% for the ad valorem rate or Shs. 230 to
• Removal of a limitation on interest deductibility for Shs. 150 for the fixed rate)
• Additional restrictions for claiming input VAT
microfinance deposit taking institutions and tier 4
microfinance institutions • Exemption from excise duty, undenatured spirits
• Non-residents providing electronic/digital
used in manufacture of sanitizers
services in Uganda will not be entitled to input • Repeal of 50% and 20% initial allowance on eligible
VAT credits; property and buildings respectively
• Reduction of the threshold for investment capital
• Input VAT incurred on gyms, sporting
• Multilateral Competent Authority Agreement on for strategic projects from USD 50 million to 35
associations or on recreational activities is now million USD for non-residents and to USD 5 million
Automatic Exchange of Financial Account information
categorised as entertainment and thus not
(“MCAAA”), with effect from 1 January 2024, a USD for citizens.
claimable; and
reporting financial institution must conduct a due
• Claims for input VAT can only be made against
diligence and annually submit a return to the Uganda
the related business generating the taxable
Revenue Authority on its existing and new customer
supply
reportable accounts held by non tax residents.
• VAT on auctioned goods to be charged by the auctioneer;
• Introduction of VAT on diapers. These were previously
VAT exempt;
• Expansion of the scope for exemption of animal feeds to
include concentrates.

PwC 48
Uganda: Key tax highlights
Tax Administration changes

• Introduction of a requirement for local authorities,
government institutions or regulatory bodies to demand
for Tax Identification Numbers where persons lodge
instruments liable to stamp duty with such bodies
• Clarification on the order of payment of tax, all tax
payments to be applied to the principal tax first until it’s
fully paid up
• Powers of the Minister to waive tax due to be subject to
Parliamentary approval
• Waiver of interest and penalties outstanding as of 30
June 2023 if the taxpayer pays all tax due by 31
December 2023
• Information relating to the past three financial years
requested for by the URA and not provided by the
taxpayer will not be considered at objection and
alternative dispute proceedings
• Introduction of penalties for unauthorised interference
with digital tax stamps machines
• Introduction of a penalty on fixing tax stamps on wrong
goods, brands or volumes

PwC 49
Rwanda
Summary of growth in FY 2022/2023 • Easing inflation; and • Promotion of digital technologies to improve service
delivery;
• The Rwandan economy grew by 6.2% in 2022/2023
• Investing in agriculture
• Eradication of malnutrition and stunting; and
compared to an 8.2% growth in 2021/2022. This is
attributed to economic uncertainties such as high Government priorities • Strengthening disaster preparedness and
inflation and supply chain issues caused by the Russia- management among others
Ukraine war as well as climate change. The economy is The government’s key priorities for 2023/24 will be
expected to grow by 6.7% in 2023/2024. focused on its economic transformation, social
• Inflation increased to 19.3% in 2023 from an average of transformation and transformational governance pillars
13.9% in 2022. which include:
Economic drivers • Strengthening the health system;

• Increasing agriculture and livestock productivity;
The key economic drivers for the year identified by the
government include:
• Scaling up social protection coverage;
• Prioritising fiscal consolidation through:

• Improving the quality of education,
✔ streamlining and gradually reducing subsidies

• Creating employment opportunities through investment
in public works;
particularly those related to energy and fuel; and
✔ new Organic Budget Law (OBL) - reforms to budget
• Support to micro, small, medium and large enterprises
affected by COVID-19 through the economic recovery
processes, including a new Pre-Budget Outlook
fund and manufacture to build and recover programs;
Paper that sets expenditure ceilings for spending
ministries earlier in the process • Support for Made in Rwanda;
• Focusing on continued economic recovery through
supporting businesses affected by Covid-19;

PwC 50
Contacts
Kenya Rwanda Tanzania Uganda
Titus Mukora Frobisher Mugambwa David Tarimo Pamela Natamba

Partner/Director Associate Director Partner/Director Partner/Director
+254 20 285 5395 frobisher.mugambwa@pwc.com +255 (0) 22 219 2600 +256 771 010881
titus.mukora@pwc.com david.tarimo@pwc.com pamela.natamba@pwc.com
Victor Omurunga
Associate Director
Nelson Ogara Ali Dawoodbhai Richard Marshall
victor.omurunga@pwc.com
Associate Director Associate Director Associate Director
+254 20 285 5001 +255 (0) 22 219 2620 +256 785 288893
nelson.ogara@pwc.com ali.dawoodbhai@pwc.com richard.marshall@pwc.com
Jonia Kashalaba Trevor B. Lukanga

Nicholas Kahiro
Associate Director Senior Manager
Senior Manager
+255 (0) 22 219 2617 +256414236018
+254 20 285 5788
jonia.k@pwc.com trevor.b.lukanga@pwc.com
nicholas.x.kahiro@pwc.com
Johnson John Juliet Najjinda
Manager Senior Manager
+255 (0) 22 219 2642 +256 782 054856
johnson.o.john@pwc.com juliet.najjinda@pwc.com

PwC 51
www.pwc.com/ke
This publication has been prepared for general guidance on matters of interest only, and does not constitute professional advice. You should not act upon the information contained in this publication without obtaining specific
professional advice. No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this publication, and, to the extent permitted by law, PwC does not accept or
assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this publication or for any decision based on it.
© 2023 PricewaterhouseCoopers Limited. All rights reserved. In this document, “PwC” refers to PricewaterhouseCoopers Limited which is a member firm of PricewaterhouseCoopers International Limited, each member firm of
which is a separate legal entity.
PwC

Budget Bulletin 2023 24

Uploaded by

Document Informationclick to expand document information

Document Informationclick to expand document information

Copyright:

Available Formats

Budget Bulletin 2023 24

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Budget Bulletin 2023 24

Uploaded by

Copyright:

Available Formats

Path to recovery, stabilisation

and growth – Tough choices

East Africa highlights 41

Path to recovery, stabilisation and growth – Tough choices June 2023

Path to recovery, stabilisation and growth – Tough choices June 2023

Path to recovery, stabilisation and growth – Tough choices June 2023

Path to recovery, stabilisation and growth – Tough choices June 2023

Path to recovery, stabilisation and growth – Tough choices June 2023

The CS proposes an amendment to the ITA to adjust the

Path to recovery, stabilisation and growth – Tough choices June 2023

Value Added Tax Contacts

Path to recovery, stabilisation and growth – Tough choices June 2023

Incentives for manufacturers and farmers

Counties violate free market protocol

Path to recovery, stabilisation and growth – Tough choices June 2023

Path to recovery, stabilisation and growth – Tough choices June 2023

Digital Credit Regulations

Central Securities Depository Upgrade

Capital Markets Regulations

Path to recovery, stabilisation and growth – Tough choices June 2023

Path to recovery, stabilisation and growth – Tough choices June 2023

Path to recovery, stabilisation and growth – Tough choices June 2023

Equitable Share Bottom-Up Economic Transformation Agenda (BETA)

Path to recovery, stabilisation and growth – Tough choices June 2023

Procurement reforms – e-Government Procurement System (e-GP) to be

Public Investment Management (PIM) Regulations, 2022 - to provide the

Path to recovery, stabilisation and growth – Tough choices June 2023

Path to recovery, stabilisation and growth – Tough choices June 2023

Path to recovery, stabilisation and growth – Tough choices June 2023

Unclaimed Financial Assets amendment

Enhancement of KYC and CDD processes

Path to recovery, stabilisation and growth – Tough choices June 2023

Path to recovery, stabilisation and growth – Tough choices June 2023

Investment in critical infrastructure

Path to recovery, stabilisation and growth – Tough choices June 2023

Path to recovery, stabilisation and growth – Tough choices June 2023

These reforms include: 3.2

Path to recovery, stabilisation and growth – Tough choices June 2023

Affordable housing programme

Path to recovery, stabilisation and growth – Tough choices June 2023

Public Private Partnerships The National Treasury has embarked on developing a 10 y

sector expertise and financing in infrastructure

The Government intends to operationalise the project

Path to recovery, stabilisation and growth – Tough choices June 2023

Path to recovery, stabilisation and growth – Tough choices June 2023

Allocations to promote enterprise and revival of key business sectors

Key Allocations Revival of Cash Crops Policy Interventions

Path to recovery, stabilisation and growth – Tough choices June 2023

Path to recovery, stabilisation and growth – Tough choices June 2023

Path to recovery, stabilisation and growth – Tough choices June 2023

Highlights of healthcare budget

In the FY 2023/2024 budget, Government continues to prioritize

The key sector programme priorities for

The Government will therefore promote Allocations in healthcare budget

To promote early diagnosis and management of cancer

To improve health service delivery

Path to recovery, stabilisation and growth – Tough choices June 2023

Path to recovery, stabilisation and growth – Tough choices June 2023