Kenya Warns $28 Billion Budget May Face Spending Cuts as Debt Service Claims 40%

2 articles · Updated · Bloomberg · May 25

Kenya said it may have to cut spending in the fiscal year starting in July as pressure builds on the next budget.
3.63 trillion shillings ($28 billion) in planned tax revenue is being squeezed by rising debt-service costs, limited room for new taxes and tighter borrowing conditions, Treasury Secretary John Mbadi said.
40% of that revenue is earmarked for loan repayments, while another 27% is set aside for government salaries, leaving a narrow share for other spending.
The warning underscores how debt obligations and financing constraints are tightening Kenya’s budget options ahead of the new fiscal year.

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