The government is between a rock and hard place over the implementation of the 16 per cent Value Added Tax on fuel. On one hand it is grappling with public outrage over the tax while on the other it not only risks losing a Sh150 billion IMF loan facility but the Sh5.7 billion it expects to raise monthly from the tax too. Yet the government has failed to keep its promise on budget deficit targets. In financial year 2016/17 it had 9.1 per cent budget deficit compared to a target of seven per cent. Last year, it had a budget deficit of 7.8 per cent from a target of 6.1 per cent.

Source: The Star September 05, 2018 03:23 UTC