- The National Treasury published the FY23 Supplementary Budget documents last week, which will be tabled in the National Assembly today (14 February, 2023).
- Subsequently, the Budget & Appropriations Committee will table its recommendation report before a Supplementary Appropriations Bill is introduced and approved by the National Assembly
- The FY23 Supplementary Budget was presented to the Cabinet at the end of January 2023, in line with the IMF programme’s structural benchmark
- Although President Ruto had hinted at an ambitious KES 300.0bn slash in budget spending by the national government, the published documents show a modest KES 13.3bn reduction in spending by the national government
- While there is still policy inertia around the unsustainable fuel subsidy, the government is weaning its extraordinary support to two SOEs; Kenya Power and Kenya Airways.
- Although the undisbursed KES 29.6bn as equitable revenue to counties portends some legal challenges, we do not see the bicameral Parliament making a big fuss out of it.
- The fiscal deficit target in the revised FY23 budget narrows from 6.2% to 5.7%, but we opine this is cosmetic based on an ambitious upward FY23 nominal GDP revision
- We are likely to see investors piling up on duration as the presumed KES 300bn spending cut, hitherto government’s open mouth operations, has not materialized in the FY23 supplementary budget.
DownloadsDownload Full Report