Discussion Paper No. 57 of 2006 on Mainstreaming Social Budgeting into the Budgetary Process in Kenya

Abstract

This study analyses the current MTEF budgetary process in Kenya with the aim of examining the extent to which it addresses the concerns of the social sector. It reveals that the MTEF budget process is not efficient in meeting the human development needs and requires to be strengthened. For instance, the MTEF process does not adequately target and budget for the social sector needs, or identify with the people at the grassroots. The MTEF process has focused more on achieving macroeconomic targets, emphasising the supply side of the budget. The demand side of the budget, where consumer needs are taken into account, has not been adequately addressed. As such, there is minimal participation of the communities in the budgeting process. One way of strengthening the MTEF budgetary process and mitigate the weaknesses identified is to mainstream social budgeting. Lessons from countries that have mainstreamed social budgeting show that it can help address shortcomings of the current budgeting process in Kenya. Given the dismal performance of some of the social indicators, it would be difficult for Kenya, under the current budgetary process, to meet some of the social commitments, such as those ratified in the international conventions of the rights of children, the MDGs, and those outlined in the Children Act of 2001.