The Kenyan Government plans to cut 2024/2025 spending by 1.9% and widen the fiscal deficit to 3.6% of GDP in a revised budget.
President Ruto had earlier this month proposed spending cuts and additional borrowing in roughly equal measure to fill the nearly $2.7 billion budget hole caused by the withdrawal of the tax hikes.
When MPs return to parliament next week they will need to debate and pass the supplementary budget, which was signed by Chris Kiptoo, principal treasury secretary on July 11, and shared on parliament’s website.
The supplementary budget projects a total expenditure of 3.87 trillion Kenyan shillings ($30 billion), down from 3.99 trillion ($31billion), Kiptoo said.
Recurrent expenditure is estimated to fall 2.1%, while development expenditure will drop 16.4%, he stated.
On Monday the energy regulator raised the road maintenance levy to 25 shillings per litre of fuel, up from18 shillings.
The International Monetary Fund (IMF) on Thursday stated that it was assessing recent developments in Kenya and making adjustments to evolving circumstances.
