Kenya's Treasury minister reveals govt can't fund projects

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Gangi Longa

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Feb 5, 2010
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Kenya's Treasury minister reveals govt can't fund projects
Wednesday March 7 2018
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Henry Rotich, the Cabinet Secretary for the National Treasury. He has said the government has no money to finance its projects. FILE PHOTO | NATION MEDIA GROUP

In Summary
  • Cabinet Secretary reveals plan to slash funds allocated to counties by up to $167.9m.
  • Mr Rotich blame the country’s financial situation on failure by the Kenya Revenue Authority (KRA) to hit its projected collection targets.
  • The CS say that elections slowed down business activities in the country.
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By DAILY NATION
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Kenya's Treasury Cabinet Secretary Henry Rotich has said that the government is facing difficulties financing some of its development projects.

While appearing before the Senate committee on Finance and Budget Wednesday, he also revealed a proposal to slash funds allocated to counties by between Ksh15 billion ($148.2m) and KSh17 billion ($167.9m).

Mr Rotich blamed the country’s financial situation on failure by the Kenya Revenue Authority (KRA) to hit its projected collection targets.

“We have discussed with the KRA on how to catch up by tightening the tax net on the domestic and customs revenue,” Mr Rotich told the Committee.

“We need to discuss with you (Senators) and governors that the figure we put on the table is not feasible based on the challenges that I have explained.”

In the current financial year, Ksh302 billion ($2.9bn). was allocated to the 47 county governments in equitable share of revenue collected, meaning that in the worst case scenario, the allocation could slashed to Ksh285 billion ($2.9bn).

Elections hit

According to the CS, the shortfall in revenue collection as projected in March last year when the budget was read early last year to pave the way for the August 8 general elections, is because of the prolonged electioneering period and biting drought.

The CS noted that these affected revenue collection as it slowed down business activity in the country.

However, Senators Mutula Kilonzo Junior (Makueni) and Ms Rose Nyamunga (nominated) questioned the move to slash counties' allocations saying it may affect ongoing projects in devolved units.

Counties are also likely to incur unnecessary expenditures in compensation costs on the ongoing projects that are likely to be affected by proposed budget cuts.

“Just tell us that the government is broke! Otherwise this thing you are telling us about reduction of the counties allocation is something that we can’t sell. It is impossible to do that midway through another budget making process,” Mr Kilonzo said.

Kenya has no money to fund projects - minister
 
Hehehe all the money gone to the name calling "baba wa democracy Africa" costs, billions of money gone to double elections per year and that is what gained so far.

Walikua wakifurahi wakiitwa baba wa democracy Africa hawakujua costs zake Hehehe mtataga
 
eliakeem said:
So HOW the Nairobi - Malaba SGR be completed??
Click to expand...
Hehehe that's white elephant will never happen

Now they're trying to compete with Tanzania on electrification ngoja wamalize kwanza sababu wataanza ujenzi upya kutoka mombasa to Nairobi na kubadilisha locomotives kisha ndio wafikirie huko Malabar

Hehehe alafu Eti watu wanasema wakenya hawapendi ujinga kwa serikali, hakuna suala la kipumbavu kama hili ningetemea wakenya waandamane mwezi mzima kwa huu upuuzi wa kuchezea kodi lakini ndio kwaaaanza tano tena
 
Waje huku kuwatopeshe,sie chungu chetu bado kiko njema as always,
Halafu nilisikia Kenya they have bad credit,hawakopesheki tena
 
Odinga angoje kidogo tuu, Kenya will fall on its own weight, watu wata demand change of guards and thats it, easy peasy.
 
mwaswast said:
Mtangoja sanaaaa.
Click to expand...
mmeenda kutembeza bakuli tena

AFRICATECH
MARCH 8, 2018 / 10:36 AM / UPDATED 2 HOURS AGO
Kenya asks IMF for a 6-month extension of $1.5 bln standby credit

Reuters Staff

2 MIN READ

NAIROBI (Reuters) - Kenya has asked the International Monetary Fund (IMF) to extend its $1.5 billion standby credit facility that is expiring this month for a further six months, the IMF said on Wednesday.


Visitors are silhouetted against the logo of the International Monetary Fund at the main venue for the IMF and World Bank annual meeting in Tokyo, file. REUTERS/Kim Kyung-Hoon

The IMF said last month that Kenya had lost access to the funds meant to cushion it against unforeseen external shocks last June because of a failure to complete a review of the programme.

In a statement issued at the end of a mission to Nairobi, the IMF said the new request for an extension will be put to the board before the facility expires on March 13.

The Washington-based IMF said the government had committed to reduce the fiscal deficit and substantially modify interest controls, imposed on banks in 2016, which have been partly blamed for choking private sector credit growth.

“Discussions on the details of these policies will continue in the coming weeks,” the IMF said in a statement, adding a full review of the two-year programme was expected to be completed in September.

It said Kenya’s economic growth was expected to rise to 5.5 percent this year, after elections and drought depressed output to an estimated 4.8 percent last year.

“Annual growth could rise further to 6.5 percent within a couple of years, provided that the authorities continue economic reforms, including reducing the fiscal deficit and amending interest rate controls,” the IMF said.

Reporting by Duncan Miriri; Editing by Sandra Maler and Grant McCool
 
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