The government has reduced the 2024/ 2025 overall Financial Year budget by Kes 132.46 billion from Kes 3.981 trillion to Kes 3.848 trillion, representing 3.3 percent.

 President William Ruto announced on Monday when he signed the Supplementary Appropriation Bill 2024 and the Division of Revenue Bill 2024 into law at State House, Nairobi.

The new laws unlock resources to catalyze economic performance and enhance service delivery.

The Supplementary Appropriation Act 2024 now reduces Kes 32.6 billion from various budget allocations.

The law rationalizes expenditures and authorizes spending Kes 102 billion from the Consolidated Fund for the year ending June 30, 2024.

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The education budget has been enhanced, with university education receiving Kes 4.468 billion and secondary education Kes 1.112 billion.

Further, the development spending has also been redirected to priority areas and reduced by Kes 75.29 billion, while Kes 51.12 billion has been allocated for emerging pressing needs.

The law also regularises Kes 23.67 billion in expenditures under Article 223 of the Constitution, which allows financing of emergencies and later approval by Parliament.

These expenditures include emergency interventions, such as Kes 4.3 billion to the State Department for Arid and Semi-Arid Areas and Regional Development for humanitarian support to flood victims.

Kes 3 billion has been allocated to the Department of Internal Security for El Nino disaster management and another Kes 3 billion for the fertilizer subsidy program.

Similarly, following floods that destroyed infrastructure, Kes 1 billion has been allocated for emergency rehabilitation of roads.

Furthermore, Kes 11.4 billion has been set aside for the Kenya Revenue Authority to enhance revenue collection efforts (Kes 4 billion) and pay pending bills worth Kes 7.4 billion.

In addition, Kes 2 billion has been allocated to cover the medical insurance for the National Police Service.

The approved additional expenditures are designed to address emergency interventions over destruction caused by the El Niño rains and other critical needs.

These include Kes 5.3 billion for emergency relief assistance, Kes 3.3 billion for security operations, and Kes 1.1 billion for mopping up excess milk by the New KCC.

President Ruto said the funds will help the government fulfill its commitment to dairy farmers by ensuring prompt monthly payments and increasing the price to Kes 50 a liter.