Kenya Reportedly Adjusts Fiscal Path: Lower Tax Expectations, Higher Debt Plans
Kenya Reportedly Adjusts Fiscal Path: Lower Tax Expectations, Higher Debt Plans
Kenya has slashed its tax revenue forecast for the fiscal year ending June at ≈$20.1 billion, media reported, citing Treasury Secretary John Mbad. The original budget was ≈$23 billion.
The budget deficit is projected to reach 6.4% of GDP, up from an earlier estimate of 4.7%, as revenue lags behind while expenditure pressures intensify.
The treasury also reportedly increased its forecast for net domestic borrowing target to ≈$8,7 billion, almost double its initial ≈50 billion target, with foreign loans estimated at more than a fifth higher at ≈$54 billion.
The country is also in talks with the IMF for a new financing program after abandoning the final assessment of a four-year program that was due in April 2025, foregoing a disbursement of about $850 million.
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