It is indicated that the expenditure cuts are mostly due to poor absorption as well as budget rationalization on account of revenue shortfall,’’ said Ichung’wah. The mountain of debt comprises of 51.9 per cent of foreign loans and 48.1 per cent of domestic loans. Some of the heaviest causalities of the cut on development budget include external funding for Nairobi to Naivasha Standard Gauge Railway which was chopped by Sh42 billion. At least Sh22.1 billion budgets for low cost housing, equalization fund, donor funding for HIV/Aids, TB and Malaria allocated to National Treasury was chopped. Ironically, the parliament has proposed budget increment for the recurrent expenditure by Sh24.06 billion despite warning from IMF which asked the country to find a balance between recurrent and development budget.

Source: The Star April 27, 2018 21:22 UTC