World Economy

Kenya Told to Go Slow on Debt Binge

Kenya Told  to Go Slow  on Debt BingeKenya Told  to Go Slow  on Debt Binge

The International Monetary Fund has told Kenya that it must reduce its alarming fiscal deficit, ensure a sustainable public debt regime and abolish the interest rates cap to put the economy back on a strong footing, AllAfrica reported. This came at the conclusion of Article IV Consultations on Kenya by a team from IMF, who had been in the country for two weeks. It also came at a time when Kenya unveiled a $24.3 billion budget for the 2018/19 financial year, with a staggering $822.3 million funding shortfall. National Treasury Cabinet Secretary Henry Rotich has therefore announced austerity measures, with a possible slowdown on development expenditure, something that could have a far-reaching impact on Kenyans. “Every institution must tighten its belt,” Rotich said when he appeared before the Senate Committee on Finance and Budget. “We have adopted a tighter fiscal framework to reduce expenditure. We have to cut expenditure across the board so that we can match with our revenue.”


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