Ruto government to borrow Ksh700 billion to finance 2024/25 budget
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Government announces plans to borrow Ksh700 billion from both domestic and international market to finance 2024/25 budget
Government announces plans to borrow Ksh700 billion from both domestic and international market to finance 2024/25 budget.
The government declared on Thursday, February 15, that it would borrow Ksh700 billion from domestic and foreign lenders to finance the projected budget deficits for the 2024–2025 fiscal year.
The remaining Ksh377.7 billion will be obtained through local borrowing, with Ksh326.1 billion coming from outside funding.
The government intends to reduce its budget deficit for the 2024–2025 fiscal year while simultaneously attempting to maintain expenditures that stimulate growth, according to the Treasury Ministry’s budget policy statement.
“The government will continue with the growth-friendly fiscal consolidation plan by containing expenditures and enhancing the mobilisation of revenues to slow down growth in public debt without compromising service delivery,” read part of the budget policy statement.
The Treasury estimates that the 2024–25 budget will increase from the previous Ksh3.90 trillion to Ksh4.19 trillion (USD28.90 billion).
It also mentioned that, in line with its earlier prediction, the economy is expected to grow by 5.5% this year.
The Treasury estimates that the deficit will decrease from 4.9% of GDP in this fiscal year to 3.9% of GDP next year.
The county allocation for 2023–2024 has been increased to Ksh445.84 billion from Ksh424.93 billion.
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Meanwhile, the Parliament has until February 28 to approve the budget policy statement with the consolidation of draft budget estimates expected to be done by April 12.
The 2024 BPS is the second to be prepared under President William Ruto’s administration and is aimed at setting out broad strategic priorities and policy goals to guide the government.
According to the Treasury, 2024 BPS aims to improve the public’s understanding of Kenya’s public finances and guide public debate on economic and development matters.
“The policy measures outlined in the 2024 BPS are expected to improve the economy-wide efficiencies, create an enabling environment that supports growth in businesses and investment, reduce the cost of living as well as enhance the wellbeing of all Kenyans,” read the BPS in part.
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