Following are highlights from the budget speech by Kenyas Cabinet Secretary for the National Treasury, or Finance Minister, Henry Rotich for the 2014/15 fiscal year starting in July. The budget announcement is coordinated across the East African Community, which also includes Tanzania, Uganda, Rwanda and Burundi. GROWTH On the domestic front, growth prospects remain strong and resilient due to continued implementation of bold economic policies and structural reforms as well as sound economic management. Prudent economic policies have helped anchor the conditions for strong and stable growth. We have been able to anchor inflation expectations down. See Also: Prison warders move to court to stop NSSF deductions We forecast our economy to grow by 5.8 percent and 6.4 percent in 2014 and 2015 respectively. SECURITY Rotich said enhancing the nations security was vital for the economy to grow and create jobs. He outlined spending on the security forces and intelligence services. Without security the economy will not grow. DEFICIT Outlining revenues and spending, taking into account commitments from international development partners, the minister said: This will leave a deficit of 190.8 billion Kenyan shillings ($2.18 billion) equivalent to 4.1 percent of GDP, which will be financed by net borrowing from the domestic market. The governments borrowing plan remains anchored in the medium-term debt management strategy.
Posted on: Thu, 12 Jun 2014 14:07:24 +0000