Finance Cabinet Secretary John Mbadi has announced that the Treasury will disburse Ksh 48.8 billion for school capitation next week and Ksh 31 billion to counties, before releasing Ksh 75 billion payment for salaries.
Speaking in Kakamega, Mbadi urged schools, teachers, and school managers not to panic, assuring them that 50% of this year’s budget is dedicated to funding the education system. He emphasized the importance of education as a critical social function, saying, “We believe that education is a vital foundation for social and economic development.”
Mbadi explained that the delay in disbursements was due to the government’s repayment of Ksh 70 billion in external debt, a burden stemming from heavy borrowing, particularly in 2014.
“We, as a country, have borrowed a lot of money, which is choking the government. While we are not out of the woods yet, we are taking steps to ensure all funds are accounted for and used effectively,” Mbadi said.
He further reassured Kenyans that there will be no over-taxation. Instead, the government plans to broaden the tax base by:
- Ensuring tax compliance from entities that have previously evaded taxes.
- Streamlining the Kenya Revenue Authority (KRA) to enhance efficiency.
- Sealing corruption loopholes to generate sufficient revenue.
As of July 2024, Kenya’s external debt stood at approximately Ksh 6.1 trillion, equivalent to around 55% of the country’s total debt. This marks an increase of Ksh 1.4 trillion since December 2022, underscoring the urgency of the government’s efforts to navigate out of the current debt trap.
Mbadi concluded by reaffirming the government’s commitment to transparency and efficiency, emphasizing that accountability in public finances remains a top priority.
