25 December 2012

Kenya: Govt Approves Supplementary Budget

Photo: The East African
Nairobi shoppers (file photo): Consumers still suffering despite inflation going down.

The Kenyan cabinet last week approved an additional $870 million supplementary budget to ease government functions ending months of speculation and anxiety.

The fate of most government operations lay in the balance following a decision by members of parliament to free any supplementary budgets if their demand for a $25,000 gratuity allowance was not granted by President Mwai Kibaki.

In unexpected turn of events, the president refused to sign the gratuity request prompting furore and anger from members of parliament who swore to ground the all important Finance Bill.

Out of the total amount, 70 per cent will be used for recurrent expenditure while the rest will cater for development expenditure.

The Kenyan government is currently struggling with a bloated wage-bill at a time when employees in various sectors and cadres of the economy are calling for enhance perks among other goodies to cash-in on the populist campaigns currently ongoing in readiness for the general election due in two months.

Finance Minister Njeru Githae has time and again been accused by parliament of sitting on crucial bills aimed at increasing the allowances of members of the Kenyan parliament. But the executive decision is in tandem with most Kenyans who reason that the Kenyan economy could hardly handle another pay hike for the already overpaid members of parliament.

Just last week, President Kibaki, known for not succumbing to parliamentary pressure made his last address to parliament where he highlighted the highs and lows of the Kenyan economy under his stewardship. Ironically, members of parliament from across the political divide were united in praising him.

Copyright © 2012 East African Business Week. All rights reserved. Distributed by AllAfrica Global Media (allAfrica.com). To contact the copyright holder directly for corrections — or for permission to republish or make other authorized use of this material, click here.

AllAfrica publishes around 2,000 reports a day from more than 130 news organizations and over 200 other institutions and individuals, representing a diversity of positions on every topic. We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons. Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct.

Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica. To address comments or complaints, please Contact us.