NAIROBI (Reuters) – The following are highlights of the Kenyan government’s budget for the 2023/24 fiscal year as presented to parliament by Finance Minister Njuguna Ndung’u.
The government’s financial year starts on July 1.
ON PUBLIC DEBT:
“Kenya’s public debt remains sustainable, but with elevated risks of debt distress due to persistent global shocks that adversely affect the liquidity ratios.”
“The depreciation of the Kenya shilling against major currencies and the rise of interest rates, has elevated the cost of debt service.”
“Further the depreciation of the currency has increased the size of the Public debt stock as half of the public debt it actually denominated in foreign currency.”
“Although the debt burden has risen. .. The government is committed to honour all public debt obligations as they fall due.”
WALK-OUT
About a dozen opposition lawmakers briefly interrupted the speech when they staged a walk-out from the chambers as the minister started. Calm returned and the speech proceeded.
ECONOMIC GROWTH OUTLOOK:
“The economy is expected to rebound in and expand by 5.5% in 2023 up from 4.8% in 2022 and it will be supported by private sector-led growth including strong performance of the services sector.”
DEFICIT:
“The fiscal consolidation plan targets to gradually reducing the fiscal deficit including grant from 6.2% of GDP in financial year 2021/22 to 5.8% of GDP in financial year 2022/23 and 4.4% of GDP in 2023/24 and further reducing fiscal gap to 3.6% in financial year 2025/26.”
TOTAL EXPENDITURE:
“We have moderated our spending to ensure we get value for money.”
BORROWING TARGETS:
“The fiscal deficit will be financed through a net external financing of 131.50 billion shillings and net domestic financing of 586.5 billion shillings.”
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(Reporting by Duncan Miriri and George Obulutsa)
