Kenya projects deficits at 5.6 pct of GDP in 2018/19 fiscal year

Kenya will target a fiscal deficit of 592.8 billion shillings, or 5.9 percent of GDP, in its 2018/19 (July-June) fiscal year, down from an estimated 7.3 percent this fiscal year, the Treasury said.
The East African nation has raised borrowing in recent years to fund a range of ambitious infrastructure projects like a modern rail line, roads and power plants.
The deficit will be covered by net external borrowing of 205.6 billion shillings, or 2.1 percent of GDP, and 383.0 billion shillings, 3.8 percent of GDP, the Treasury said in a budget outlook paper seen by Reuters on Wednesday.
The government expected to collect total revenue equivalent to 18.6 percent of GDP in 2018/19, unchanged from this fiscal year, while total expenditure will drop to 25.0 percent of GDP from 27.1 percent this year, the Treasury said.
It said the drop in projected spending was due to the completion of the first phase of the construction of a modern railway linking the port of Mombasa to the capital Nairobi.