‘Kenya is broke’ says government

Kenya is “broke”, its Treasury says, and now plans to slash its budget deficit which reportedly stands at least 80bn shillings ($790m; £569m).

BBC

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.

4 Comments

  1. Eh, please remind again what our own budget deficit stands at?

  2. Corruption is Rife in Africa

    Too much looting by the elite and the easy way out for african countries is too put their hands out to beg instead of finding all the money and prosecuting those who have messed up the economy through looting

  3. Why do you not allow me to post any comments 0n your pages? You are cowards.

  4. Of course Kenya is broke – you should read any of their daily papers online and see how much the politicians, the ‘wabenzi’ crowd and the ‘land barons’ steal from govt on a daily basis. Their ‘just for me’ MP’s are paid $5000 per month. Oh, a lesson for Zim – Kenya has a totally ‘devolved’ govt and it makes for the biggest theft of all to take place. But, that’s Africa, babe.

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