Kenya to target leather, edible oil value chains in FY2024/25 budget
Treasury Cabinet Secretary, Prof. Njuguna Ndung’u, has unveiled Kenya’s strategic plan to propel an economic recovery in the fiscal year 2024/25. Prof Ndung’u says target sectors encompass leather, cotton, dairy, edible oils, tea, rice, the blue economy, natural resources, and building materials value chains.
Currently, Kenya focuses more on raring cattle for meat and placing less emphasis on leather, which can bring in more revenue. From the shoes we wear, to belts, and handbags, the leather industry can create vast revenue sources if tapped well.
“We see leather, pyrethrum, cotton, textiles and apparel, pharmaceutical, edible oils as value chains whose industrialization will hasten the attainment of our vision for national economic growth and transformation,” President Ruto said earlier in June.
These industries, Prof Ndung’u noted, have been strategically selected to not only bolster employment opportunities but also to catalyze economic recovery.
While smarting from the effects of the Covid-19 pandemic as well as challenges due to the ongoing Russia-Ukraine war, Kenya is keen on a turnaround plan in the nation’s economic fortunes to generate jobs and spark a resurgence.
Prof. Ndung’u noted that the FY2024/25 and the Medium-Term Budget will be aligned with President William Ruto’s Bottom-up Economic Transformation Agenda. This strategy places importance on fostering inclusive growth and elevating investment opportunities across Kenya.
As the FY 2024/25 and the Medium-Term Budget are drafted, government ministries and departments will be directed to allocate resources towards these critical areas.
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FY2024/25 financial blueprint
Highlighting the broader economic context, the CS acknowledged that while Kenya’s economic outlook is on an upward trajectory, the global landscape continues to present challenges. The FY 2024/25 and the Medium-Term Budget are being devised with these factors in mind, aiming to capitalize on optimism while remaining mindful of external constraints.
Further, the Treasury CS noted that the upcoming financial blueprint will build on the robust foundation laid by the Vision 2030 Fourth Medium Term Plan. The progress made in previous financial years will be a cornerstone for this new endeavor, signifying the government’s commitment to continuity and progression.
Reflecting on recent achievements, Prof. Ndung’u announced that during the last financial year, the Treasury disbursed 100 per cent of the Equitable Share to the counties, totaling Kes399.6 billion.
This allocation included Kes29.6 billion carried forward from the preceding year. Overall, Prof Ndung’u said the upcoming FY2024/25 and the Medium-Term Budget hold the promise of revitalizing the economy, igniting growth, and driving Kenya towards a more prosperous future.
