Kenya sets 2016/17 budget deficit at 9.3 percent of GDP, but likely to fall

Kenya will set a budget deficit equivalent to 9.3 percent of its gross domestic product for the fiscal year starting in July, but the actual level is likely to be lower due to slower spending, the Treasury said in its Budget Policy Statement.

Typically, Kenya forecasts a high deficit but fails to spend as much as predicted. The Treasury document said that "going by historical absorption uptake" the actual budget deficit would likely be 6.9 percent.

The original forecast deficit for fiscal 2015/16 was 8.7 percent of GDP but it is now expected to come in at 7.9 percent. The Treasury presents the new budget to parliament in June.