Kenya’s economy to grow by 6% in 2022
The Government has projected a growth of six percent for the fiscal year 2022/2023.
This is against a backdrop of an economy recovering from the COVID-19 pandemic, rising costs of debt, projected drought, rising cost of goods, and elections, among other factors.
The plan to achieve this is premised on significant revenue growth.
The total expenditure has increased from Ksh.3.2 trillion in FY 2021/22 to Ksh.3.34 trillion in FY 22/23 with a projected ordinary revenue increase from Ksh.1.81 trillion to Ksh.2.14 trillion.
The Government has projected the fiscal deficit to fall from the current Ksh.1.02 trillion (about 8.2 percent to the Gross Domestic Product) to Ksh.862 million (6% to the GDP) in FY 2022/23.
To achieve this, according to PriceWaterhouseCoopers (PwC) the Government will need to restrict growth in recurrent spending through reduction of non-priority expenditure and re-double efforts on revenue collections.
According to PwC, the third medium-term plan had projected the deficit to fall from 7.54 percent to GDP in 2016/2017 to 3.8 percent to GDP in 2021/2022…this was not achieved.