• About
  • Advertise
  • Privacy & Policy
  • Contact
Kenyan Business Feed
  • Home
  • African
  • News
    • Agribusiness
    • Courts
    • Hospitality
    • Manufacturing
  • Education
  • Health
  • Reports & Analysis
  • World Business
No Result
View All Result
  • Home
  • African
  • News
    • Agribusiness
    • Courts
    • Hospitality
    • Manufacturing
  • Education
  • Health
  • Reports & Analysis
  • World Business
No Result
View All Result
Kenyan Business Feed
No Result
View All Result
Home News

Treasury to borrow more amid massive job cuts and firm losses countrywide

Kenyan Business Feed by Kenyan Business Feed
Treasury to borrow more amid massive job cuts and firm losses countrywide
Share on FacebookShare on Twitter

The Treasury will have to borow more after an August audit showed that they wont meet their target in the business environment which has been hit with massive job cuts and corporate losses.

The Budget outlook paper tabled in Parliament yesterday shows that the National Treasury has revised its borrowing target to Sh640 billion for the year ending June next year, up from the Sh607 billion it had unveiled in the June budget statement. This means that the Treasury will have to borrow Sh33 billion more.

Treasury will now target a deficit of 6.2 percent of gross domestic product (GDP) for the current fiscal year, which runs from July to June, compared with a forecast of 5.6 percent in June. It said the revision to its forecasts was driven by poor revenue collection and expenditure in 2018/19.

KRA was expected to collect Sh1.877 trillion in tax from lines like company profits and workers’ salaries, but the target has been lowered to Sh1.852 trillion barely four months into the new financial year that started on July 1. The cuts point to the extension of reduced sales and profits in corporate Kenya that have persisted since 2017 when the country went through a bruising General Election and two presidential elections after the first one was annulled by the Supreme Court.advertisement

Top firms have in recent months put on hold the hiring of new staff in an economy that has also witnessed a string of job losses affecting nearly all sectors.

Reduced profitability in corporate Kenya, which is underlined by a record number of firms listed on the Nairobi bourse issuing profit warnings, has also hurt income tax collections.

The fiscal deficit for 2019/20 will be financed by net external financing of Sh331 billion, domestic borrowing of Sh305.7 billion and other net domestic receipts of Sh3.2 billion, the document said.

Economists and political analysts have criticised President Uhuru Kenyatta’s government for increasing borrowing since coming to power in 2013.

Total public debt has jumped to 55 percent of GDP from 42 percent before he took office. The government says the higher borrowing funds infrastructure projects. The Treasury is also trying to cut spending amid the struggle to raise revenue. It announced budget cuts on what it termed unnecessary expenditure, such as trips abroad by officials and advertising by government departments, to rein in a gaping fiscal deficit.

The cuts will accompany a freeze in both hiring and pay increases as well restrictions on new development projects, which will now require Treasury approval. However, the Budget outlook paper shows that Budget expenditure for the year to June will stand at Sh2.84 trillion, from the June forecast of Sh2.8 trillion, suggesting the cuts are unlikely to shrink State spending.


Kenyan Business Feed is the top Kenyan Business Blog. We share news from Kenya and across the region. To contact us with any alert, please email us to [email protected]
Tags: BudgetparliamentTreasuryUHURU
Kenyan Business Feed

Kenyan Business Feed

Recommended.

Millions pocketed by casual revenue collectors in Homabay

Millions pocketed by casual revenue collectors in Homabay

November 15, 2019

Kenya raises Sh212 billion in new Eurobond : The Standard

May 16, 2019

Subscribe.

Trending.

Tourism CS Rebecca Miano on Tuesday convened coastal public-private stakeholders in Mombasa to accelerate Kenya’s MICE sector growth, announcing progress on re-establishing the Kenya National Convention Bureau and urging youth-led innovation in tourism.

Kenya Ramps Up MICE Sector Reforms as CS Miano Confirms Convention Bureau Revival

July 1, 2025
Safaricom’s SIG Forum empowers SMEs with branding insights from 3Verse Kenya, showcasing award-winning campaigns and inclusive business support.

Safaricom’s SIG Forum Empowers SMEs as 3Verse Kenya Shares Award-Winning Branding Strategies

June 23, 2025
Co-op Bank Launches New Financial Solutions to Empower MSMEs in Kenya

Co-op Bank Launches New Financial Solutions to Empower MSMEs in Kenya

June 23, 2025
Safaricom launches new credit solutions, Fuliza Biashara, Taasi Till, and Taasi Pochi—to expand MSME access to financing and boost financial inclusion.

Safaricom Unveils New Credit Solutions to Boost MSME Financing in Kenya

June 23, 2025
Tourism CS Rebecca Miano discusses the economic impact and global appeal of the 2025 Safari Rally

Tourism CS Rebecca Miano Reveals Economic Impact of the 2025 Safari Rally

April 1, 2025
Kenyan Business Feed

We focus on news, analysis, and reports about Kenyan business, covering sectors like agriculture, finance, tourism, and technology.

Categories

  • African
  • Agribusiness
  • Courts
  • Education
  • Health
  • Hospitality
  • Manufacturing
  • NetWorths
  • News
  • Reports & Analysis
  • World Business

Popular News

  • First look at the prison where El Chapo may live for the rest of his life

    First look at the prison where El Chapo may live for the rest of his life

    2157 shares
    Share 1040 Tweet 466
  • Sameer Africa CEO Sacked

    1803 shares
    Share 749 Tweet 439

Recent News

Kenya elected to the UN Tourism Executive Council for the 2025–2029 term, marking a diplomatic breakthrough that elevates its role in shaping global travel governance and sustainable tourism policy.

Nairobi Ascends to UN Tourism Executive Council After Strategic Bid Poised to Shape Global Industry Agenda

July 1, 2025
Tourism CS Rebecca Miano on Tuesday convened coastal public-private stakeholders in Mombasa to accelerate Kenya’s MICE sector growth, announcing progress on re-establishing the Kenya National Convention Bureau and urging youth-led innovation in tourism.

Kenya Ramps Up MICE Sector Reforms as CS Miano Confirms Convention Bureau Revival

July 1, 2025
  • Home
  • African
  • News
  • Education
  • Health
  • Reports & Analysis
  • World Business

© 2025 KBF

No Result
View All Result
  • Home
  • African
  • News
    • Agribusiness
    • Courts
    • Hospitality
    • Manufacturing
  • Education
  • Health
  • Reports & Analysis
  • World Business

© 2025 KBF