Ruto says borrowing only way to plug deficit of Kenya | ANG
  • July 16, 2024

Sports:Argentina claims 16th Copa America Championship with 1-0 win over Colombia

Argentina clinched its second consecutive Copa America title by defeating Colombia 1-0 on Sunday night with Lautaro Martínez’s 112th-minute goal, despite Lionel Messi’s injury in the second half. Messi suffered a …

Business:Kenya to cut spending by nearly 2% in revised budget

Kenya plans to reduce its 2024-25 spending by 1.9% and widen the fiscal deficit to 3.6% of GDP, following the rollback of tax hikes due to protests. In response to protests …

Vote counting begins in Rwanda’s presidential election

Vote counting has begun in Rwanda following the closure of polling stations on Monday in a presidential election poised to extend President Paul Kagame’s long tenure. Kagame, who has led the …

Kenyan President William Ruto has said that the country will resort to more borrowing to plug a growing budget deficit after the rejection of the finance bill that would have increased tax revenue.

Following deadly protests last week, Ruto declined to sign the bill and wrote to parliament to withdraw it.

During a TV interview Sunday, Ruto said that the failure of the bill had hurt government efforts to ease the country’s debt burden. About 60% of Kenya’s revenues go to servicing debt.

He said east Africa’s largest economy will seek one trillion Shillings ($7.6 billion) from lenders to pay for social services and other programs.

The new taxes would have raised about $2.7 billion.

Last week, law makers overwhelmingly approved the finance bill shortly before protestors stormed parliament and set sections of it on fire.

The protestors say the government should cut corruption and waste instead of raising taxes. President Ruto has promised to reduce the budget of the presidency and to eliminate non-essential expenditure.

Kenya’s debt stands at over $80 billion. A large chunk of it is denominated in foreign currency.

Leave a Reply

Your email address will not be published. Required fields are marked *