Kenya opts to cut spending by 12% to achieve budget balance
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 ($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.
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 ($28.35 billion), a whopping 12% 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 $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.
Kenya’s March inflation figures eased to 5.7%, following a 23-month low of 6.3% in the month prior. These are a few of the economic wins the East African country has been experiencing of late.
Additionally, it was reported earlier this month that the Kenyan economy is about to catch a break as gasoline prices fall for the first time since August. This development also represents Kenya’s highest month-on-month decline, with prices lowering by up to Ksh7 per liter effective immediately.
Super petrol currently costs less than Ksh200 per liter. According to the most recent pricing schedule, the new price will go into force immediately until April 14th, and it is designed to alleviate the stress caused by the country’s growing cost of living.
