Kenya’s 2019/20 (July-June) budget deficit is expected to fall to 4.7 percent of the gross domestic product from a revised 5.8 percent this fiscal year, a senior Treasury official said on Tuesday.
The government has been for ramping up borrowing and spending in recent years, leaving it with a fiscal deficit that peaked at 7 percent in the fiscal year that ended last June.
Kamau Thugge, the principal secretary at the Treasury, said at a public hearing on the country’s budget that the deficit was likely to drop to 2.8 percent of GDP by the 2022/23 fiscal year.
He said the government was likely to spend Sh2.81 trillion ($27.40 billion) in the next fiscal year, up from a revised Sh2.47 trillion in this financial year.
Roll over loans
Kenya is also in talks with lenders to roll over a $760 million syndicated loan this fiscal year and lengthen its maturity in order to make debt repayments more manageable, Thugge said today.
The loan, which was initially for two years, was arranged by TDB bank.