Kenya budget deficit hits 8%

[Geza Ulole]

Kenya’s 2017-18 budget worsening in fiscal deficit – Analysts
By David Indeje / September 12, 2017

July, Fitch Ratings estimated the fiscal deficit to narrow to 6.4 percent of GDP in FY18, as expenditure falls closer to average historical levels and improvements to revenue administration and collection begin to show results.

However, in August Fitch said in terms of the Kenyan economy, “Failure to consolidate budget deficit and stabilise government debt/GDP would be negative for Kenya’s credit profile, while effective implementation of a fiscal consolidation plan and stabilisation of government debt/GDP could lead to a positive rating action.” “Risks to our forecast include slower-than-expected growth and lower revenue collection.”
[/paste:font]
Genghis notes that sentiment in the equities market was mostly bullish in the year to election date, with the YTD (on 7th August) performance of NSE All Share Index up 19.1 percent.

“In the penultimate week to the election, the index eased 1.6 percent before advancing in the five sessions post-election by 6.3 percent. The Supreme Court ruling came as a surprise to the markets with KES 129.6Bn in market capitalization diluted in the two consequent sessions. In that same period, foreign investors accelerated their selling with net selling position of KES 688.5Mn (an abnormally high exit),” they note.
Read: Kenya private sector experienced worst deterioration in August

“The biggest hurdle we foresee in the first half of the fiscal year is meeting the borrowing target with the Treasury currently at KES 10.01Bn net borrowing position,” Genghis state.
In the current uncertain environment, the analysts expect the market to continue managing risk by staying short, forcing the Central Bank to continue issuing short term debt.
“We do not believe this is sustainable and believe pressure will pile on CBK to begin accepting more expensive money as: they fall further behind the borrowing target and revenue collection falters due to the ongoing economic growth slowdown, which in turn will push up yields on the short end of the yield curve.”
The Supreme court, in a 4-2 majority decision, determined that: the election held on August 8th was not in accordance with the Constitution rendering the election null and void and President Uhuru Kenyatta was not validly declared as President elect by the Independent Boundaries and Electoral Commission (IEBC).
In addition, the Supreme Court ordered IEBC to organize and conduct fresh presidential elections within sixty days in strict conformity with the Constitution.
IEBC has called for fresh presidential elections to be held


Kenya's 2017-18 budget worsening in fiscal deficit - Analysts

 

[Geza Ulole]

AFRICATECH
FEBRUARY 17, 2017 / 10:55 AM / A YEAR AGO
Kenya eyes lower budget deficit in 2017/18 fiscal year
Duncan Miriri
NAIROBI (Reuters) - Kenya plans to target a fiscal deficit of 7.0 percent of GDP in its financial year starting in July, down from 9.6 percent of GDP this fiscal year, the Treasury said in a draft budget.


Kenya's Cabinet Secretary of National Treasury (Finance Minister) Henry Rotich holds up a briefcase containing the Government Budget for the 2015/16 fiscal year outside his office in Nairobi, June 11, 2015. REUTERS/Noor Khamis
The draft, seen by Reuters on Friday, projects the deficit at 582.5 billion shillings ($5.63 billion), down from an estimated 716.9 billion this fiscal year.

SPONSORED STORIES

The Treasury said the deficit would be covered by 206.0 billion shillings in net external borrowing while the rest will come from domestic borrowing.

The government was committed to lowering the fiscal deficit to 5.2 percent of GDP in the 2018/19 fiscal year and 4.0 percent in the medium term, the Finance Ministry said.

“This reduction will strengthen our debt sustainability position,” the ministry said, adding economic growth was expected at 5.9 percent this year from an estimated 6.0 percent last year.

Financial markets participants and the opposition have criticised the government of President Uhuru Kenyatta for raising borrowing in the last four years to spend on a range of infrastructure projects such as a new railway and roads.

Kenyatta is running for a second and final five-year term in an election set for Aug. 8. He is widely expected to face his main rival Raila Odinga, although a united opposition, bringing together the main parties, has not yet said who will challenge Kenyatta.

Lawmakers are expected to peruse the draft budget in the next few weeks, before the finance minister presents the final budget, which will include any changes brought by parliamentarians and agreed upon by the Treasury.

The East African nation usually unveils its budget in mid-June but it has brought it forward due to the August vote.

($1 = 103.5500 Kenyan shillings)

Reporting by Duncan Miriri; Editing by Alison Williams

Kenya eyes lower budget deficit in 2017/18 fiscal year

 

[Niksta254]

Kenya’s 2017-18 budget worsening in fiscal deficit – Analysts
By David Indeje / September 12, 2017

July, Fitch Ratings estimated the fiscal deficit to narrow to 6.4 percent of GDP in FY18, as expenditure falls closer to average historical levels and improvements to revenue administration and collection begin to show results.

However, in August Fitch said in terms of the Kenyan economy, “Failure to consolidate budget deficit and stabilise government debt/GDP would be negative for Kenya’s credit profile, while effective implementation of a fiscal consolidation plan and stabilisation of government debt/GDP could lead to a positive rating action.” “Risks to our forecast include slower-than-expected growth and lower revenue collection.”
[/paste:font]
Genghis notes that sentiment in the equities market was mostly bullish in the year to election date, with the YTD (on 7th August) performance of NSE All Share Index up 19.1 percent.

“In the penultimate week to the election, the index eased 1.6 percent before advancing in the five sessions post-election by 6.3 percent. The Supreme Court ruling came as a surprise to the markets with KES 129.6Bn in market capitalization diluted in the two consequent sessions. In that same period, foreign investors accelerated their selling with net selling position of KES 688.5Mn (an abnormally high exit),” they note.
Read: Kenya private sector experienced worst deterioration in August

“The biggest hurdle we foresee in the first half of the fiscal year is meeting the borrowing target with the Treasury currently at KES 10.01Bn net borrowing position,” Genghis state.
In the current uncertain environment, the analysts expect the market to continue managing risk by staying short, forcing the Central Bank to continue issuing short term debt.
“We do not believe this is sustainable and believe pressure will pile on CBK to begin accepting more expensive money as: they fall further behind the borrowing target and revenue collection falters due to the ongoing economic growth slowdown, which in turn will push up yields on the short end of the yield curve.”
The Supreme court, in a 4-2 majority decision, determined that: the election held on August 8th was not in accordance with the Constitution rendering the election null and void and President Uhuru Kenyatta was not validly declared as President elect by the Independent Boundaries and Electoral Commission (IEBC).
In addition, the Supreme Court ordered IEBC to organize and conduct fresh presidential elections within sixty days in strict conformity with the Constitution.
IEBC has called for fresh presidential elections to be held


Kenya's 2017-18 budget worsening in fiscal deficit - Analysts

Kenya’s 2017-18 budget worsening in fiscal deficit – Analysts
By David Indeje / September 12, 2017

July, Fitch Ratings estimated the fiscal deficit to narrow to 6.4 percent of GDP in FY18, as expenditure falls closer to average historical levels and improvements to revenue administration and collection begin to show results.

However, in August Fitch said in terms of the Kenyan economy, “Failure to consolidate budget deficit and stabilise government debt/GDP would be negative for Kenya’s credit profile, while effective implementation of a fiscal consolidation plan and stabilisation of government debt/GDP could lead to a positive rating action.” “Risks to our forecast include slower-than-expected growth and lower revenue collection.”
[/paste:font]
Genghis notes that sentiment in the equities market was mostly bullish in the year to election date, with the YTD (on 7th August) performance of NSE All Share Index up 19.1 percent.

“In the penultimate week to the election, the index eased 1.6 percent before advancing in the five sessions post-election by 6.3 percent. The Supreme Court ruling came as a surprise to the markets with KES 129.6Bn in market capitalization diluted in the two consequent sessions. In that same period, foreign investors accelerated their selling with net selling position of KES 688.5Mn (an abnormally high exit),” they note.
Read: Kenya private sector experienced worst deterioration in August

“The biggest hurdle we foresee in the first half of the fiscal year is meeting the borrowing target with the Treasury currently at KES 10.01Bn net borrowing position,” Genghis state.
In the current uncertain environment, the analysts expect the market to continue managing risk by staying short, forcing the Central Bank to continue issuing short term debt.
“We do not believe this is sustainable and believe pressure will pile on CBK to begin accepting more expensive money as: they fall further behind the borrowing target and revenue collection falters due to the ongoing economic growth slowdown, which in turn will push up yields on the short end of the yield curve.”
The Supreme court, in a 4-2 majority decision, determined that: the election held on August 8th was not in accordance with the Constitution rendering the election null and void and President Uhuru Kenyatta was not validly declared as President elect by the Independent Boundaries and Electoral Commission (IEBC).
In addition, the Supreme Court ordered IEBC to organize and conduct fresh presidential elections within sixty days in strict conformity with the Constitution.
IEBC has called for fresh presidential elections to be held


Kenya's 2017-18 budget worsening in fiscal deficit - Analysts

DODOMA, Tanzania, June 8 (Reuters) - Tanzania said on Thursday it plans to increase spending in its budget for the fiscal year ending June 2018 by 7.3 percent to 31.71 trillion shillings ($14.21 billion), with a focus on infrastructure, curbing tax evasion and industrialising the economy.

Tanzania has ramped up spending in recent years to build a standard gauge railway, new roads and expand its ports. In his budget speech to parliament, Finance and Planning Minister Philip Mpango said the budget for the next fiscal year would continue in that vein.

“The government plans to increase revenue, curb leakages of government resources, control expenditure and enforce public procurement legislation,” he said.

Mpango said the government plans to borrow 6.17 trillion shillings in coming fiscal year from domestic sources and expects 3.97 trillion shillings from external concessional loans and grants.

The government said it would seek an additional 1.59 trillion shillings from external non-concessional loans.
UPDATE 1-Tanzania expects to spend more in 2017/18, crack down on...

geza mbuzi huyo hapo katikati

 

[Geza Ulole]

DODOMA, Tanzania, June 8 (Reuters) - Tanzania said on Thursday it plans to increase spending in its budget for the fiscal year ending June 2018 by 7.3 percent to 31.71 trillion shillings ($14.21 billion), with a focus on infrastructure, curbing tax evasion and industrialising the economy.

Tanzania has ramped up spending in recent years to build a standard gauge railway, new roads and expand its ports. In his budget speech to parliament, Finance and Planning Minister Philip Mpango said the budget for the next fiscal year would continue in that vein.

“The government plans to increase revenue, curb leakages of government resources, control expenditure and enforce public procurement legislation,” he said.

Mpango said the government plans to borrow 6.17 trillion shillings in coming fiscal year from domestic sources and expects 3.97 trillion shillings from external concessional loans and grants.

The government said it would seek an additional 1.59 trillion shillings from external non-concessional loans.
UPDATE 1-Tanzania expects to spend more in 2017/18, crack down on...
View attachment 702004 geza mbuzi huyo hapo katikati

no where budget deficit hit 8%

 

[Niksta254]

no where budget deficit hit 8%

well its at 6% so STFU

 

[KichwaNgumu254]

Oh boy! Stop your juvenile mental acrobats with matters economy if you don't comprehend a thing! We are almost past the threshold of FY2017/18. If any deficit is to be highlighted now is that of FY2018/19 which is just months away and being budgeted for! Any deficit accrued from FY2017/18 can easily be forwarded and budgeted for in the next fiscal year. Don't cherry pick what you want to hear by refocusing on the elapsing budget.
If anything is pending out for lack of fund appropriation due to deficit,you only defer on priority till funds are availed either by austerity measures,budget cuts,soft loan etc. Don't be alarmist here,Umesikia Kenya imesimama kwa sababu ya even 40% deficit as it was common in Kanu days leave alone a measly 8% now?

Jipe shughuli!

 

[3rd man]

Hehehe,mkomoe kabisa huyu kilaza😱

 

[KichwaNgumu254]

View attachment 702018

Lol...mbuzi kasoma financial reports! 😀😀😀 Afadhali mbuzi huyo achezewe guitar ina bongo flavour at least it can relate! 😀😀😀

 

[Niksta254]

Lol...mbuzi kasoma financial reports! 😀😀😀 Afadhali mbuzi huyo achezewe guitar ina bongo flavour at least it can relate! 😀😀😀

wakisema DDDDUUUUHHHHHH, DUUUHHHHHH, Daaaarrrrrr, Dar Es Salaam

 

[Mkikuyu- Akili timamu]

Oh boy! Stop your juvenile mental acrobats with matters economy if you don't comprehend a thing! We are almost past the threshold of FY2017/18. If any deficit is to be highlighted now is that of FY2018/19 which is just months away and being budgeted for! Any deficit accrued from FY2017/18 can easily be forwarded and budgeted for in the next fiscal year. Don't cherry pick what you want to hear by refocusing on the elapsing budget.
If anything is pending out for lack of fund appropriation due to deficit,you only defer on priority till funds are availed either by austerity measures,budget cuts,soft loan etc. Don't be alarmist here,Umesikia Kenya imesimama kwa sababu ya even 40% deficit as it was common in Kanu days leave alone a measly 8% now?

Jipe shughuli!

No need to worry about deficit, Eurobond ipo tena kwa wingi. Infact whether the flower industries collapse and discontinue their annual $$ remintances due to our uncompetitive Middle class bragging status, doesnt matter, China is our friend. Jubilee toilet heads

 

[joto la jiwe]

TANZANIA’S BUDGET DEFICIT RAISES CONCERN - Corporate Digest

i know you are illiterate... uliza mkenya akusome Mtanzania mwenzako najua hawezi

Nenda kunya kwanza ndiyo kuja kuchangia. This budget is for 2014/15 fiscal. Lete ya 2017 utajisikia kujifungua kwa uchungu utakaokushika[emoji1] [emoji1]

 

[KichwaNgumu254]

Nenda kunya kwanza ndiyo kuja kuchangia. This budget is for 2014/15 fiscal. Lete ya 2017 utajisikia kujifungua kwa uchungu utakaokushika[emoji1] [emoji1]

Learn something; The same fundamentals that occasion budget deficits are bound to reoccur year-in-year out if no immediate stop-gap fiscal measures are applied. Your financial woes of FY2014/5 are probably the same for FY2017 if not worse with pending implementations! Budget allocations/spendings are continuous events,you cannot detach one FY from the other...that's why serviceable loans taken say 15years ago are still factored and recurrent expenditures becomes constant items. Usipoelewa,nitafute for free tutoring 😉

 

[joto la jiwe]

Learn something; The same fundamentals that occasion budget deficits are bound to reoccur year-in-year out if no immediate stop-gap fiscal measures are applied. Your financial woes of FY2014/5 are probably the same for FY2017 if not worse with pending implementations! Budget allocations/spendings are continuous events,you cannot detach one FY from the other...that's why serviceable loans taken say 15years ago are still factored and recurrent expenditures becomes constant items. Usipoelewa,nitafute for free tutoring 😉

Kila unapoweka post yako ndivyo unavyodhihirika how stupid you are, let me give you a simple advice, please don't reply everything, try to identify topics which your comfortable with, or just keep quite.

Every year has its own budget and it is important to get each year budget so that you can compare if you are improving or not. It is only a stupid person who can think the way you do. Tanzania from 2015 to 2017 has nearly doubled its tax revenue collection, it has cut its Government expenditure by nearly 20%, by so doing budget dependency has gone down largely. Stop your nonsensical reasoning.

 

[KichwaNgumu254]

Kila unapoweka post yako ndivyo unavyodhihirika how stupid you are, let me give you a simple advice, please don't reply everything, try to identify topics which your comfortable with, or just keep quite.

Every year has its own budget and it is important to get each year budget so that you can compare if you are improving or not. It is only a stupid person who can think the way you do. Tanzania from 2015 to 2017 has nearly doubled its tax revenue collection, it has cut its Government expenditure by nearly 20%, by so doing budget dependency has gone down largely. Stop your nonsensical reasoning.

Go school your type. Don't squander your cheap advise on me. Don't like my posts,don't read them! Or better still,don't post trash here on something you've no idea about...I will rebuttal with facts. Unless you are talking about an Utopian Tanzania!

 

[Niksta254]

Kila unapoweka post yako ndivyo unavyodhihirika how stupid you are, let me give you a simple advice, please don't reply everything, try to identify topics which your comfortable with, or just keep quite.

Every year has its own budget and it is important to get each year budget so that you can compare if you are improving or not. It is only a stupid person who can think the way you do. Tanzania from 2015 to 2017 has nearly doubled its tax revenue collection, it has cut its Government expenditure by nearly 20%, by so doing budget dependency has gone down largely. Stop your nonsensical reasoning.

rudi kufanya venye waTanzania know best..

kujifanya wajuaji

kuongea matope

and best of all

kusema DUUUUUUHHHHHHH, DUUUHHHHHH, DAAAaaarrrr Dar Es Salaam

 

[joto la jiwe]

Go school your type. Don't squander your cheap advise on me. Don't like my posts,don't read them! Or better still,don't post trash here on something you've no idea about...I will rebuttal with facts. Unless you are talking about an Utopian Tanzania!

Massege sent and delivered[emoji23] [emoji23]

 

[KichwaNgumu254]

Massege sent and delivered[emoji23] [emoji23]

Good to know that message received and deeply sank in your thick skull 😀😀😀. Good student

 

[joto la jiwe]

Good to know that message received and deeply sank in your thick skull 😀😀😀. Good student

What you know most is Kibera, please tell me more about Kibera life, and leave those high voltage topics to others. How is Kibera today?[emoji1] [emoji1] [emoji1]

 

[Niksta254]

Massege sent and delivered[emoji23] [emoji23]

joto la jiwe and geza gasia reading KichwaNgumu254's posts

 

[KichwaNgumu254]

What you know most is Kibera, please tell me more about Kibera life, and leave those high voltage topics to others. How is Kibera today?[emoji1] [emoji1] [emoji1]

Kibera ni kwetu and any unwarranted jibe will be met with full force of wit and facts! Ingine?