Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.

Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.

Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.


Kenya sees fiscal deficit dipping in 2014/15, plans infrastructure boost

13 June 2014, 08:07

Nairobi - Kenya expects its fiscal deficit to fall slightly to about 7.4 percent of gross domestic product for the 2014/15 financial year, figures from the finance minister's budget speech showed on Thursday.

The government has previously forecast a deficit for 2013/14 of 7.9 percent for the east African nation, which aims to raise between $1.5 billion and $2 billion with a debut Eurobond it is now marketing.

Finance Minister Henry Rotich maintained the government's 2014 economic growth forecast of 5.8 percent and said it would rise to 6.4 percent next year, in a speech that outlined plans to improve security after 12 months that have seen a number of attacks linked to Islamist militants.

"Without security the economy will not grow," he said, noting that the valuable tourism industry had been hit hard.

Rotich promised new railways, roads and airports in a budget that forecast spending for the financial year starting on July 1 of 1.581 trillion shillings ($18.03 billion).

He put the overall deficit at 342.4 billion shillings, of which he said net external financing amounted to 149.2 billion shillings, or 3.2 percent of GDP, while domestic borrowing would cover 190.8 billion shillings, or 4.1 percent of GDP.

The remaining 2 billion shillings would be covered by loan repayment receipts, he said.

Those figures would indicate a total budget deficit of around 7.36 percent of GDP, based on a Reuters calculation.

On infrastructure, he said the government would finalise financing in the new financial year for a second stage of a new standard gauge railway between Nairobi and the Ugandan border. Building the first stage from the coast to Nairobi has begun.

The new line will replace a slower, narrow gauge line built in the 19th century.

Rotich said the government would build three new airports: at Malindi on the coast, Mandera in the north and Suneka in the western part of the country. The road network would also be expanded.

Other members of the five-member East African Community were also announcing their budgets on Thursday.

 - Reuters


Read News24’s Comments Policy

Comment on this story
Comments have been closed for this article.

Read more from our Users

Submitted by
Kenya says will return to interna...

Kenya will return to international markets to borrow when it feels the time is right, National Treasury Cabinet Secretary Henry Rotich said on Tuesday. Read more...

Submitted by
George Vodongo
China to help Kenya fight high le...

China observed that if left unchecked, corruption could see the country degenerate into lawlessness. Read more...

Submitted by
S Mbinya
Signs that he is seeing someone e...

When a man wants to be with you, he will always create time to be with you. Read more...

Submitted by
George Vodongo
Spat between DP Ruto and Boniface...

A close associate of the DP, Hon Njogu Barua made an alarming comment on live TV Tuesday morning. Read more...

Submitted by
Ben Wangui
Matatu driver who drugged, robbed...

The driver of a Nissan matatu who over the weekend drugged and robbed a female passenger in Nairobi has been charged. Read more...

Submitted by
Gabriel Ngallah
Heavy police contingent deployed ...

More police officers were on Monday deployed at Likoni in Mombasa County in a security operation to nab members of the ‘Wakali Kwanza’ and ‘Mtalia’ criminal gangs who have been terrorizing locals in the area. Read more...