Business News

NAIROBI, Sept 15 (APP/Xinhua): Kenya’s budget for the 2018/2019
financial year is expected to hit 29 billion U.S. dollars, up from the 26 billion dollars for the current financial year, officials said on Friday.
Principal Secretary in the National Treasury Kamau Thugge told
participants in a budget forum in Nairobi that approximately 19 billion dollars will be raised through taxes and government fees.
“The rest will be raised from domestic and external borrowing,
including concessional loans from bilateral and multilateral partners,” Thugge said during the launch of the Sector Working Groups for the Preparation of the 2018/2019 financial year.
Thugge said that out of the total resource envelope of 29 billion
dollars only 2.95 billion dollars will be available for discretionary spending.
The bulk of the budget will cater for the public wage bill as well as
interest payments on domestic and foreign debt.
According to Thugge, next year’s budget will focus on funding projects
that will support strategic investments aimed at promoting economic growth and job creation.
Thugge said that the budget deficit for the 2018/2019 financial year is
expected to decline to less than 6 percent as part of measures to maintain
overall macroeconomic stability.
The treasury official noted that the government is committed to
reducing the fiscal deficit in order to maintain public debt levels sustainable.
“The net present value of public debt as a ratio of gross domestic
product (GDP) as of the end of 2016 stood at 47.8 percent,” he said, adding it remains below the debt sustainability threshold level, established by Bretton Woods institutions, of 75 percent of GDP.