Kenya to cut non-essential spending this year, says IMF

Treasury Cabinet Secretary Henry Rotich

Kenya's government plans to cut some non-priority spending this financial year to balance the books after its borrowing costs rose, the International Monetary Fund's resident representative said.

Higher lending rates are also likely to impact economic growth, which might reach 6 percent in 2015, IMF Kenya representative Armando Morales said, short of the government's target of 6.9 percent. The economy grew 5.5 percent in the second quarter and 5.3 percent in 2014.