Kenya’s Finance Ministry asks parliament to raise budget by 86 bln shillings

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The Central Bank of Kenya has issued new generation banknotes following promulgation of a new Constitution which ushered hope for a Newly Reborn and Prosperous Kenya.
Kenyan Shillings in the black wallet on a wooden background. Photo: Getty

Kenya’s Finance Ministry has requested the parliament to increase the 2019/20 (July-June) budget by an extra 86.4 billion shillings ($844 million), local Business Daily and Daily Nation newspapers reported on Wednesday.

The ministry says the money will be used for power, rail and road projects,

The papers, citing documents submitted to parliament on Tuesday, said the ministry had asked parliament to cut recurrent expenditure by 5.6 billion shillings, but raise development expenditure by 85.5 billion shillings and add another 6.5 billion shillings to go to regional county governments.

The request for an increase in the 2019/20 budget comes at a time when the government is struggling to meet its revenue collection target, which stands at 2.09 trillion shillings for the fiscal year.

The government, led by President Uhuru Kenyatta, has been criticised for increasing borrowing since coming to power in 2013.

Mr. Kenyatta defends the borrowing, saying the money is needed to pay for infrastructure.

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