6 days ago
Kenya's Revenue Raising Seen Constrained Until After 2027 Vote
Kenyan authorities will struggle to introduce revenue-raising measures before 2027 elections, constraining the government's attempts to narrow the budget-financing gap, according to Moody's Ratings.
Revenue generation remains structurally weak, with the ratio of tax to gross domestic product standing at about 17%, the ratings agency said in a research note. An inelastic expenditure structure will meanwhile limit spending cuts, with more than half of the budget swallowed up by salaries, pensions, interest payments and transfers to county governments, it said.
