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.


Domestic borrowing to be cut by a half

04 August 2014, 21:17

Nairobi - The country plans to cut its domestic borrowing by about 47 percent this financial year to stimulate economic growth, the presidency said in a statement on Monday.

The World Bank trimmed the 2014 economic growth forecast by 50 basis points to 4.7 percent in June, citing poor rains and growing insecurity in Kenya, east Africa's biggest economy.

A series of bombings and gun attacks by Somali al Shabaab militants has damaged Kenya's tourism sector. The group wants Kenya to withdraw its troops from Somalia where they are fighting as part of an African Union peacekeeping force.

The presidency said the Treasury plans to borrow 100 billion Kenyan shillings in the 2014/2015 financial year, down from about 190 billion shillings it borrowed last year.

Kenya's debut $2 billion Eurobond issued in June drew bids of $8.8 billion. President Uhuru Kenyatta has in the past said he hopes the bond would cut the government's local borrowing requirement, which would in turn help reduce interest rates.

The presidency said Kenyatta was confident the Eurobond has "created room for banks to lend to the private sector".

The budget for 2014/15 announced in June anticipated a budget deficit of about 7.4 percent of gross domestic product and local borrowing of 190.8 billion shillings ($2.18 billion), or 4.1 percent of GDP.

- Reuters


Read News24’s Comments Policy

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

Read more from our Users

Submitted by
Wilson Ochieng
DP Ruto accuses Raila of selling ...

DP Wiliam Ruto has castigated Raila Odinga for seeking western support to fund his 2017 election bid. Read more...

Submitted by
William Korir
Peter Kenneth announces Uhuru 201...

Peter Kenneth has announced that he will support President Uhuru Kenyatta in the 2017 elections. Read more...

Submitted by
Wilon Ochieng
Labour Party to dump both Jubilee...

The Labour Party of Kenya is likely to avoid supportoing both the CORD and Jubilee factions during the 2017 General Elections. Read more...

Submitted by
William Korir
Ukambani MP quits Jubilee, to run...

An Ukambani MP has quit the Jubilee Party, citing voter apathy as his reason behind leaving the ruling coalition. Read more...

Submitted by
Victor Tinto
Government launches probe into Po...

The government has launched an inquiry into the circumstances that could have led to two National Police Service helicopter accidents in August and September this year. Read more...

Submitted by
Wilwon Ochieng
Deputy Governor's ally found with...

The EACC has recovered KES 2 million in fake currency from a close ally of Deputy Governor for Tharaka Nithi Eliud Mati. Read more...