The Draft 2021 Budget Policy Statement (BPS), which was released by the Treasury on Monday for public participation, illustrates this dawning reality check. The persistence of the Covid-19 pandemic and required lockdowns, social distancing and its effect on consumption, have hit global economies, which are key source markets for Kenya. Also, increased public spending, particularly increased wages, pose a huge risk to the country’s fiscal space. But the economy is expected to rise from the ravages of Covid-19, particularly if the virus vaccine is rolled out. Much of the reduction is on the conditional allocation, which has been scaled downwards from Sh58.8 billion to Sh33.7 billion.
Source: Standard Digital January 27, 2021 03:00 UTC