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Budget factors in Sh23bn UN refund for Somalia war
Kenya Defence Forces (KDF) in Somalia. Kenya expects the UN to reimburse Sh7.5 billion in the 2011/12 fiscal year and another Sh15.7 billion in the new fiscal window. KDF troops were last month integrated into the UN-backed African Union Mission in Somalia (Amisom), handing them a qualification to receive financial and logistical support from the global body and ease budget pressures on the government. Photo/FILE
Kenya Defence Forces (KDF) in Somalia. Kenya expects the UN to reimburse Sh7.5 billion in the 2011/12 fiscal year and another Sh15.7 billion in the new fiscal window. KDF troops were last month integrated into the UN-backed African Union Mission in Somalia (Amisom), handing them a qualification to receive financial and logistical support from the global body and ease budget pressures on the government. Photo/FILE 

Business Daily Africa
Friday, May 04, 2012

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The government expects about Sh23.2 billion in refunds from the United Nations if its troops remain in Somalia up to the end of the next financial year. 
 
Budget estimates by the Finance ministry showed that Kenya expects the UN to reimburse Sh7.5 billion in the 2011/12 fiscal year and another Sh15.7 billion in the new fiscal window.

Troops from the Kenya Defence Force (KDF) were last month integrated into the UN-backed African Union Mission in Somalia (Amisom), handing them a qualification to receive financial and logistical support from the global body and ease budget pressures on the government.

“The recent decision to integrate Kenyan troops within the UN contingent will help minimise their impact on the budget,” Finance minister Njeru Githae and Central Bank of Kenya governor Njuguna Ndung’u said in their recent letter of intent to the International Monetary Fund (IMF).

Kenyan soldiers have been active in Somalia since late last year in pursuit of members of the Al-Qaeda-linked Al-Shabaab terror group.

Kenya’s participation in the warfare against the member group had raised fears of serious budgetary disruptions.

The cost of keeping one soldier in Somalia is estimated at around Sh7,000 per day (or Sh200,000 a month), covering transport, food and water expenses, communication and medical care.

This translates to at least Sh1 billion for keeping 1,000 soldiers in the battlefield for six months which would have caused a big dent in the national budget.

Kenya’s incursion into Somalia came in the wake of the recent drought at home and high global commodity prices that had already forced the Treasury to waive taxes on essential items, weakening the government’s ability to finance an open-ended war.

The government remains under pressure to handle challenges of funding the implementation of the recently adopted constitution and ensure compliance with stricter accountability set out under the new laws.

Budget estimates by the Finance ministry showed that Kenya expects the UN to reimburse Sh7.5 billion in the 2011/12 fiscal year and another Sh15.7 billion in the new fiscal window.

Troops from the Kenya Defence Force (KDF) were last month integrated into the UN-backed African Union Mission in Somalia (Amisom), handing them a qualification to receive financial and logistical support from the global body and ease budget pressures on the government.

“The recent decision to integrate Kenyan troops within the UN contingent will help minimise their impact on the budget,” Finance minister Njeru Githae and Central Bank of Kenya governor Njuguna Ndung’u said in their recent letter of intent to the International Monetary Fund (IMF).

Kenyan soldiers have been active in Somalia since late last year in pursuit of members of the Al-Qaeda-linked Al-Shabaab terror group.

Kenya’s participation in the warfare against the member group had raised fears of serious budgetary disruptions.

The cost of keeping one soldier in Somalia is estimated at around Sh7,000 per day (or Sh200,000 a month), covering transport, food and water expenses, communication and medical care.

This translates to at least Sh1 billion for keeping 1,000 soldiers in the battlefield for six months which would have caused a big dent in the national budget.

Kenya’s incursion into Somalia came in the wake of the recent drought at home and high global commodity prices that had already forced the Treasury to waive taxes on essential items, weakening the government’s ability to finance an open-ended war.

The government remains under pressure to handle challenges of funding the implementation of the recently adopted constitution and ensure compliance with stricter accountability set out under the new laws.

Huge budgetary pressure is especially expected when it comes to the creation of 47 new counties under the devolved system of governance.

Estimates by the Treasury showed that the 47 counties are set to receive Sh160 billion out of this year’s national budget outlay of more than Sh1.2 trillion.

The 2012/13 national budget represents a 6.4 per cent increase over the current year’s gross estimates, compared with a 33.4 per cent jump in the previous year. Sh59.4 billion goes to energy, infrastructure and ICT.
 


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