Kenya fiscal deficit to fall to 6.0pc of GDP in 2018/19 fiscal year

NAIROBI: Kenya's fiscal deficit is projected to fall to 7.2 percent of GDP in the financial year to the end of June, from 8.9 percent in the previous period, the Treasury said in a draft budget policy statement seen by Reuters on Monday.

The East African nation has been criticised for failing to cut borrowing, after ramping up debt in the past five years to fund a range of ambitious infrastructure projects, including a modern railway line.

The deficit was expected to fall further to 6.0 percent of GDP in the 2018/19 (July-June) financial year, the Treasury said.

The government would cut its expenditure in order to reduce the deficit, the ministry of finance said in the document.