Following mass protests against tax hikes, Kenya’s government has devised a new budget that reduces the original 2024/25 budget by 1.9% and widens the fiscal deficit to 3.6% of the country’s GDP. The supplementary budget, signed by Principal Treasury Secretary Chris Kiptoo, projects total spending at $30 billion, down from $31 billion. Recurrent expenditure will drop by 2.1% and development expenditure by 16.4%. This move is the latest by President William Ruto’s government after what began as protests against tax hikes evolved into calls for his resignation. Last week, he fired nearly his entire cabinet and vowed to form a broad-based government to address protesters’ demands. He faces pressure from both the IMF to reduce deficits and from Kenya’s populace, which is struggling with a high cost of living.
SOURCE: BUSINESS LIVE