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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.