Kenya’s President Uhuru Kenyatta on Thursday signed into law the 2019-20 Supplementary Appropriation Bill to release funds for Government expenditure ending 30th June 2020.
The Appropriation Act authorises the release of KShs 73.4 billion.
National Assembly Budget and Appropriations Committee (BAC) approved the FY2019/20 Supplementary Budget I Estimates with amendments. Changes proposed by BAC was an overall increase of Ksh 49.77Bn in FY2019/20 Supplementary Budget I Estimates comprising of an increase of Ksh 50.57Bn in development spending and a reduction of Ksh 799.02Mn in recurrent expenditure.
The committee said the proposed estimates would ‘likely occasion to a financing gap of Ksh 146.3 billion. from the initial Ksh 617Billion.
“While the bulk of the deficit is expected to be funded externally, the prospect of overshooting the Ksh 300 billion domestic debt target is high. Whereas global monetary easing and a prospective IMF facility may help lower the external financing costs, elevated public finance management concerns may sustain a high premium on the sovereign,” noted NCBA Analysts.