Don’t hold your breath for Kenya's fiscal consolidation

The budget speech for FY 2018/19 is of much interest because desires of government seem to be in opposition. On one hand is the previously articulated intent for fiscal consolidation and on the other, the need to finance the ‘Big Four’.

This article will examine fiscal consolidation and assess the budget using this lens with a focus on planned expenditure, revenue generation and borrowing. Under fiscal consolidation, expenditure should reduce, revenue generation increase and borrowing reduce.