Kenya plans to borrow a record Sh1 trillion between July and June next year to plug a budget hole that has been deepened by the negative impact of the Covid-19 pandemic. But it hopes that the borrowed cash will lift millions out of poverty by resuscitating businesses distressed by the Covid-19 pandemic and creating thousands of jobs. The money that Treasury expects to borrow from both local and foreign investors in 12 months from July, technically known as fiscal deficit, had initially been estimated at Sh898 billion. The projected fiscal deficit, or budget hole, excludes grants from donors. “However, this path was interrupted by the outbreak and rapid spread of the Covid-19 pandemic,” said Treasury in the outlook, which sets the stage for the Government’s fiscal policies for the current financial year.

Source: Standard Digital September 12, 2020 21:00 UTC