Kenya’s Ministry of Finance plans to increase government spending by 15.9% which is about 3.66 trillion Kenyan shillings (about US$29.2 billion) in the next fiscal year as tax revenue within the country increase and is expected to grow even further.
However, the latest figures show that the Kenya Tax Agency (KRA) has not met current targets.
A draft medium-term statement on national budgetary policies released last week shows the government plans to increase the size of the budget to $40.5 billion by 2026, supported by an expected further increase in tax revenues.
The Treasury Department expects revenue to grow 15% to $23 billion next year and at least $33.4 billion by 2026, mainly due to projected tax revenue growth and an increase in aid appropriations.
“Revenue development will be boosted by ongoing tax policy reforms and tax administration measures to broaden the tax base,” the statement released on Feb. 15 said.
At the same time, the Treasury Department wants the budget deficit to grow from $6.6 billion (5.7 percent) in 2022 to $5.7 billion (4.4 percent of GDP) and then to about 3.6 percent in the next fiscal year to reduce.
Percent of gross domestic product by 2026 with growth in national product.