daniel chigunwe
In line with the Kenyan president’s plan for its national budget, Kenya has opted to lower its expenditure plan for the fiscal year beginning this July by 12 percent to Ksh3,7 trillion (US$28,35 billion).
The president of the country, William Ruto noted that initiatives like this would help in balancing the country’s budget in the next three years. This is another development in the long list of wins the East African country has been recording.
President Ruto aims to achieve a budget balance over the next three years through spending cuts.
Recent economic wins include easing inflation at 5,7 percent and falling gasoline prices, alleviating cost of living pressures.
A report by the EastAfrican publication shows that the government plans to reduce its annual spending on the year starting July by Ksh3,7 trillion (US$28,35 billion), a whopping 12 percent cut from its original budget.
The idea is to continually inch towards attaining a balanced budget.
Additionally, the idea is buttressed by the fact that the Kenyan Shilling, the country’s official currency and stock prices gained marginally after it successfully issued a new US$1,5 billion Eurobond in February to fund the partial buyback of another bond expiring in June.
This action defied popular assumptions that it would struggle to penetrate overseas markets.
“We are reducing our budget from four points, almost Ksh4,2 trillion to Ksh3,7 trillion,” the president said, while in Ghana.
“We need to live within our means… we are shedding off fat,” President William Ruto added. – Business Insider Africa
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