Wednesday, August 17, 2022
HomeNewsAfricaKenyan budget office sends warning signal over IMF fiscal targets

Kenyan budget office sends warning signal over IMF fiscal targets

In its review of the 2022-23 budget published in May, the PBO raises concern that the fiscal deficit has gone “above the agreed levels over the medium term” with the IMF. “The expenditure increase that has necessitated expansion of the deficit is mostly in recurrent rather than development expenditure,” says the report by PBO, an advisory unit to lawmakers.

Kenya has been on a 38-month finance programme with the IMF since April 2021 which allows access to credit of $2.34b on condition that expenditure is kept under a tight rein and debt is cut. The country’s recurrent expenditure has been on an upward trend for the past five years, accounting for about 50% of the total budget for 2022-23.

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