Kenyan government running short of revenue

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Kenya’s treasury ministry has revealed that the East African country is experiencing a revenue shortage amounting up to Kshs 70 billion (US$ 700 million).

Local Citizen TV reports Treasury Cabinet Secretary Henry Rotich to have appeared before the country’s senate finance committee, where he made the remarks.

Tasked to explain why the government had not disbursed funds meant for county governments, Rotich said the country was running short of revenue.

“We are running short of revenue. There was a slowdown in business activities because of elections but we are now catching up,” Citizen TV quotes him to say.

He said the counties would have to wait until June before the monies were disbursed.

Rotich however told the Senate that plans were underway to amend the division of revenue bill to reduce allocation to counties.

“The deficit has implications on the expenditure, we have already started austerity measures in the national government and we asking governors to do so too,” he said.

Some senators are reported to have rejected the proposal to slash the country allocations, arguing that the move would stall projects around the country.

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