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Kenyan Government Expenditure.

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Denzel Musumba

Denzel Musumba


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The Government expects to raise an estimated Sh11.4 billion through its expenditure rationalisation programme to deal with emergencies this fiscal year(2010/11). Treasury PS Joseph Kinyua said the funds would be used to finance the implementation of the first phase of the new Constitution (3.4 billion) and buy food and water for communities living in drought stricken areas (8 billion). "At the moment, the Government is facing pressure for additional resources," Kinyua told reporters in Nairobi yesterday, adding "What we have done is to rationalise Government expenditure, particularly on recurrent budget so that we don’t undermine growth." Kinyua said the Government was, certainly, under pressure for additional resources to deal with unplanned spending programmes for the 2010/11 financial year. He said the Government would, however, be prudent with respect to its domestic borrowing to avoid throwing its debt to gross domestic product ratio out of proportion. "We are committed to ensuring that we internally put together these resources. However, we have continued to manage our borrowing to levels where we will not find it difficult to service our debts," he said. Economy on track Kinyua expressed optimism the economy was firmly on track despite the drought and political wrangling in the grand coalition government over the controversial judicial nominations. Treasury projects that the economy will grow by between 5.7 per cent and six per cent this year. Kinyua was speaking to journalists shortly after presiding over the official opening of the East and Southern African Association of Accountants General 18th Annual Conference at the Kenyatta International Conference Centre in Nairobi. The La Nina effect is currently causing destruction on agricultural and livestock production in North Eastern, parts of Eastern, Coast and the North Rift of the country.