Kenyan Treasury Secretary to present landmark budget to parliament
Kenyan Treasury Secretary Ukur Yatani will present a $33 billion national budget proposal to the Kenyan parliament today.
The proposal is the largest in Kenyan history, amounting to over $33 billion in total, with significant portions of the budget dedicated to economic stimulus and vaccine purchases. A major point of concern is financing the new budget, as revenue collection from traditional streams are inadequate because of the negative economic effects of the COVID-19 pandemic.
Kenya currently faces a budgetary gap of over $8.3 billion. That gap is likely to be financed through international loans from organizations such as the International Monetary Fund, worsening the country’s $67 billion debt burdens, which rose 16% from 2020. Despite these crucial concerns, expect the budget to be approved by the Kenyan Parliament, due to Nairobi’s desire to promote strong post-pandemic economic recovery to support President Uhuru Kenyatta’s reelection campaign.
In the short-term, expect tax levies on novel economic sectors such as digital services, and excise duty items such as cigarettes and jewelry to bolster revenue collection. In the medium-term, increased consumption and income and business taxes will be required to finance Kenya’s growing debt burden, thereby fueling public backlash against rising prices and national debts.
Wake up smarter with an assessment of the stories that will make headlines in the next 24 hours. Download The Daily Brief.
