Kenya may be forced to triple its borrowing requirements and at a much higher cost if it postpones imposition of the unpopular valued added tax (VAT) on fuel in the wake of ongoing dilution of its public finances, experts have warned.
Rating agency Moody’s says in a new analysis of Kenya’s fiscal position that annual borrowing could hit 20 per cent (Sh1.77 trillion) of the gross domestic product (Sh8.845 trillion) or triple the budgeted deficit of Sh559 billion if fails to implement key reform measures.
