Browsing: Kenya’s National Treasury

• The government of Kenya is deploying measures to protect local industries from the onslaught of cheap imports.
• Kenya’s $26.4 billion FY2023/24 budget is an increase from $23.6 billion plan for the fiscal year ending June 30.
• The country is, however, facing high inflation, ballooning debt, and a high rate of joblessness.

President William Ruto’s first $26.4 billion budget for the FY2023/24 starting July 1st seeks to boost job creation, power growth of industries, and reduce borrowing.

Kenya’s $26.4 billion FY2023/24 budget is an increase from the $23.6 billion plan for the fiscal year ending June 30. East Africa’s economic powerhouse, Kenya, continues to struggle with growing inflation, skyrocketing debt, and a high unemployment rate.

Job creation targets Kenya’s youth

The lack of enough jobs is disproportionately affecting the country’s young people. The economy is also struggling from the impact of external shocks. For instance, Kenya is hurting from the Russia-Ukraine …

Safaricom, the government’s primary source of dividends, substantially increased its dividends payout. Other state-controlled enterprises, like the power generator KenGen and Kenya Re, also increased their contribution during the review period, which helped to boost the total amount of dividends.

The Treasury will receive a total payout of Sh19.4 billion for its 35 per cent telco ownership due to the dividend announcement, making it one of the most significant recipients of the windfall.

In February, Safaricom paid an interim dividend to the Treasury in the amount of 8.97 billion Kenyan shillings.

Safaricom declared a final dividend of 0.75 shillings per share, which will entitle it to receive an additional 10.5 billion by the 31st of August.…

The National Treasury is projecting real GDP growth of 6.0 per cent and 5.8 per cent for 2021 and 2022 respectively and has used the same as the basis for its revenue projections. But this adds to the overall optimism being projected.

In September 2021, the Central Bank of Kenya Governor projected a 6.1 per cent growth rate for 2021 and 5.6 per cent in 2022.

The International Monetary Fund’s most recent forecast puts 2022 growth expectations at 6.0 per cent. The World Bank, on the other hand, projects growth to print at 4.5 per cent and 4.7 per cent in 2021 and 2022 respectively.

We really believe this optimism being projected around is largely irrational and the story of Kenya’s economic growth still remains a puzzle to us. …