The National Treasury has allocated Sh10.1 billion for the manufacturing sector for the financial year 2022/2023, one of the areas that has remained a key priority to budgetary funding.
The government said it aims at supporting and protecting local industries, generation of jobs and improved livelihoods.
“…to further promote local industries, I have proposed an allocation of Sh10.1 billion under various implementing ministries, departments and agencies,” he said.
Out of Sh10.1 billion, Sh1.0 billion will go to the Credit Guarantee Scheme to enhance access to affordable credit by micro, small and medium enterprises in the manufacturing sector; and Sh626 million for provision of finances to micro, small and medium enterprises through the Kenya Industrial Estate.
Additionally, Yatani proposed Sh2.6 billion for Dongo Kundu Special Economic Zone; Sh295 million for the development of the Special Economic Zone Textile Park in Naivasha, Kinanie Leather Industrial Park and Athi River Textile Hub; Sh50 million for the Freeport and Industrial Park Special Economic Zone in Mombasa.
Other proposed allocations include Sh410.4 million for the modernisation of Rivatex and Sh3.0 billion for supporting access to finance and enterprise recovery.
“In order to maximise the benefits from our cash crops, the government will make further investments towards their revival and enhancement of output.
In this respect, Mr. Speaker, I propose an allocation of Sh212.1 million for modernisation of co-operative cotton ginneries and a further Sh250.4 million for the Cotton industry revitalisation,” he said.
To equip youths with essential training and internship opportunities, Yatani has proposed an allocation of Sh1.3 billion for the Kenya Industry and Entrepreneurship Project; Sh2.2 billion for the Kenya Youth Employment and Opportunities Project; Sh500 million for Industrial Research Laboratories; Sh200 million for Constituency Industrial Development Centres.
Last year, the Treasury allocated Sh20.5 billion for the manufacturing to support value addition and raising share of manufacturing to GDP to 15 per cent by 2022.
Manufacturing has been considered a ‘legacy’ agenda under President Uhuru Kenyatta’s Big Four projects.
The sector has since been amongst key budget beneficiaries in the previous years.
The projects have, however, remained under criticism with the Budget and Appropriations Committee citing that project such as Universal Health coverage, Affordable Housing, Food and Nutrition will not serve its agenda by 2022.