Kenya is “broke”, its Treasury says, and now plans to slash its budget deficit which reportedly stands at least 80bn shillings ($790m; £569m).
Treasury Cabinet Secretary Henry Rotich made the comment at a senate finance committee yesterday, where he told senators to reduce budgets for each of Kenya’s 47 counties by up to 18bn shillings ($178m; £128m) within this financial year.
“We are running short of revenue. There was a slow-down in business activities because of [last year’s contested] elections. We are now catching up,” he added.
The International Monetary Fund (IMF) says it has given Kenya a six-month extension of a frozen $1.5bn (£1bn) stand-by facility in return for “substantially modifying” interest rate controls, the Financial Times reports.
Kenya’s economic growth is expected to have fallen to about 4.8% in 2017, the Financial Times quotes the IMF as saying, from 5.8% in 2016 due to the controls, the political crisis and a prolonged drought.
Kenya officially the Republic of Kenya, is a country in Africa and a founding member of the East African Community (EAC). Its capital and largest city is Nairobi. Kenya’s territory lies on the equator and overlies the East African Rift covering a diverse and expansive terrain that extends roughly from Lake Victoria to Lake
It encompasses savannah, lakelands, the dramatic Great Rift Valley and mountain highlands. It’s also home to wildlife like lions, elephants and rhinos. From Nairobi, the capital, safaris visit the Maasai Mara Reserve, known for its annual wildebeest migrations, and Amboseli National Park, offering views of Tanzania’s 5,895m Mt. Kilimanjaro.
Source: NewsDay Zimbabwe