Kenya - Public finance



The fiscal year extends from 1 July to 30 June. Due to recent mismanagement of public funds, government expenditures are closely watched. Nevertheless, government spending has remained around 30% of GDP since 1995. While in the past decade Kenya has had some problems meeting loan obligations with the IMF and the World Bank, the country was set to receive over $300 million in aid from those organizations in 2000. However, problems with internal reform forced the IMF and the World Bank to suspend those programs, and as of mid-2002 they have not been reinstated.

The US Central Intelligence Agency (CIA) estimates that in 2000 Kenya's central government took in revenues of approximately $2.9 billion and had expenditures of $3 billion. Overall, the government registered a deficit of approximately $60 million. External debt totaled $8 billion.

The following table shows an itemized breakdown of government revenues and expenditures. The percentages were calculated from data reported by the International Monetary Fund. The dollar amounts (millions) are based on the CIA estimates provided above.

Kenya

REVENUE AND GRANTS 100.0% 2,910
Tax revenue 79.9% 2,324
Non-tax revenue 17.3% 502
Grants 2.9% 84
EXPENDITURES 100.0% 2,972
General public services 13.0% 385
Defense 5.6% 168
Public order and safety 6.5% 193
Education 25.6% 762
Health 7.0% 208
Social security 2.7% 79
Housing and community amenities 3.0% 88
Recreation, cultural, and religious affairs 0.4% 11
Economic affairs and services 14.2% 420
Interest payments 22.2% 659
Also read article about Kenya from Wikipedia

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