Kirunda Kivejinja presents modest $100M EAC budget

On infrastructure, the minister informed the House of the completion of the Taveta – Mwatate road, which is part of the multinational Arusha – Holili/Taveta – Voi road and its commissioning in July, 2017. On the side of Tanzania, the dual construction of the14 Km long Sakina – Tengeru section, was completed while the construction of the 42-km long Arusha Bypass is in progress.

Kivejinja arrives to present the EAC budget on Monday. The Chairperson of the EAC Council of Ministers Ali Kirunda Kivejinja has presented to the East African Legislative Assembly for consideration budget estimates totaling $99,770,716 (Sh378 billion) for the financial year 2018/2019.

It is a step down from the 2017/18 budget of $110,130,184 but support from development partners remains at over 40% (42% from 47%).

The priority interventions for 2018/2019 will focus on enhanced free movement of goods in the East African region and further liberalization of free movement of labor and services. Focus will also be on improved cross-border infrastructure under the Single Customs Territory (SCT) to ease cost of doing business in the region and enhanced regional agricultural productivity.

The budget will partly be financed by partner state contributions through the Ministries of EAC Affairs ($50,227,920); Ministries responsible for Education – ($ 4,466,210) and Ministries responsible for Fisheries ($ 1,551,032).

Development partners will support the community to the tune of ($42,925,613) while member universities will inject in to the kitty $ 333,970. The miscellaneous revenue is pegged at $ 265,971.

According to a statement from the East African Legislative Assembly, the 2018/2019 budget is allocated to the organs and institutions of the EAC as follows; East African Community Secretariat ($46,693,056), East African Legislative Assembly ($17,885,852) and the East African Court of Justice ($3,982,446). The Inter-University Council for East Africa shall receive ($6,847,969), Lake Victoria Basin Commission ($13,357,673) while $ 2,518,137 is earmarked for the Lake Victoria Fisheries Organization.

On their part, the East African Science and Technology Commission shall receive ($ 1,661,779), East African Kiswahili Commission ($ 1,605,353) and the East African Health Research Commission ($ 4,204,032). The East African Competition Authority is to benefit from $1,014,418 in the Financial Year 2018/19.

Kirunda Kivenjija, who is also Second Deputy Prime Minister of Uganda, presented the budget speech in Nairobi and cited a number of assumptions on which this year’s budget is pegged on. He stated that continued and consolidated political support of the EAC integration together with political stability and good governance as well as safe and stable security across the region were key.

Kivenjija said growth in Kenya was supported by sustained investment in infrastructure and improvement in the service sectors, while in Uganda and Tanzania growth was mainly supported by strong performance in the industry sector.

“Mr. Speaker, the EAC region maintained its position as the fastest-growing sub-region in Africa, with estimated growth of 4.6 % in 2017, up from 4.4 % in 2016”, Kivejinja said.

According to Kivejinja, strong growth was widespread in the region, with Kenya, Rwanda, Tanzania and Uganda growing at more than 5%.

Growth in Kenya was supported by sustained investment in infrastructure and improvement in the service sectors, while in Uganda and Tanzania growth was mainly supported by strong performance in the industry sector.  Rwanda’s growth was supported by favorable weather conditions and higher commodity prices.  However, Kivejinja said the economic growth in Burundi and South Sudan remained subdued in 2017, with some signs of steady recovery.

Other priority interventions in the budget include enhanced industrial development through investment in key priority sectors including leather and textile; skills development, technological advancement and innovation to stimulate economic development.

On infrastructure, the minister informed the House of the completion of the Taveta – Mwatate road, which is part of the multinational Arusha – Holili/Taveta – Voi road and its commissioning in July, 2017. On the side of Tanzania, the dual construction of the14 Km long Sakina – Tengeru section, was completed while the construction of the 42-km long Arusha Bypass is in progress.

The minister further informed the House of the completion of the Mombasa-Nairobi standard gauge railway (SGR) line in Kenya and stated the phase II from Nairobi to Naivasha was ongoing and expected to be completed by 2019. “These are backbone lines for the Mombasa-Nairobi-Kampala-Kasese/Kigali and Tororo-Pakwach/Gulu-Nimule-Juba SGR project along the Northern Corridor”, Kivejinja informed the House.

The 2018/2019 budget is themed: “Enhancing Prosperity and Welfare of EAC Citizens” . The House is now expected to debate on the budget proposals.

~ The Independent 

more recommended stories

Skip to toolbar