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Analysis by Region - Emerging Markets - Kenya

Publisher Oxford Economics
Published Mar 12, 2025
Length 6 Pages
SKU # OFE19929303

Description

The Kenyan government has raised its projected expenditure for the 2024/25 fiscal year (FY, July to June) to KSh3.98trn, underscoring ongoing difficulties in managing its public finances. Following the withdrawal of the 2024 Finance Bill, government spending was initially trimmed by 2.8% to KSh3.88trn in July's supplementary budget to align with revised revenue expectations and the IMF’s fiscal consolidation targets. However, last month’s Budget Policy Statement (BPS) partially reversed the expenditure cuts, increasing government spending by 2.5% compared with the supplementary budget, though it remained 0.4% below the original projection. This upward revision suggests that the government has not fully adhered to its expenditure cuts and has instead subtly introduced new taxes to support the fiscus.

Table of Contents

6 Pages
Kenya: Spending plans go off track
Forecast overview
Recent developments
Short-term outlook
Key drivers of our short-term forecast
Economic risk
Economic risk evaluation
Background
Economic development
Structure of the economy
Balance of payments
Policy and politics

Pricing

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