Kenya to borrow Sh 1.02 Trillion to fund 2021/22 Sh 3.02 Trillion budget, says CS Ukur Yatani

 

Treasury Cabinet Secretary Ukur Yatani.

Kenyans expected to pay a higher tax as more debt load to fund the 2021/22 national budget, set to expand 7.47 Percent to Sh3.02 trillion.


Treasury Cabinet Secretary Ukur Yatani released the 2021 Budget Policy Statement (BPS) on Monday.


The Jubilee administration sets to push the country above the Sh9 trillion debt ceiling as taxpayers dig deeper to pay the loans.

The 2021/22 budget is Sh216 billion more than the Sh2.81 trillion expenditure assessments for the current 2019/20 financial year.


The executive allocated Sh1.92 trillion, followed by Parliament set to receive Sh37.8 billion and the Judiciary to get a marginal cut of Sh17.9 billion.


Counties allocated Sh326.5 billion while the Consolidated Fund Services (CFS), which pays the debt, civil servants pension and salaries for constitutional commissions will get Sh724.5 billion.

The new BPS shows that the huge expenditure cost will leave the country with a massive deficit of about Sh1 trillion already in the borrowing pipeline.

The Government set to borrow from both local and international lenders to fund the budget.