Kenya cabinet approves 25 pct rise in spending for 2015/16 -statement

Kenya will raise government spending 25 percent to 2.17 trillion shillings ($23.16 billion) in the fiscal year from July, with the bulk of the increase going on energy, infrastructure and telecommunications, according to a proposal approved by the cabinet on Wednesday. 

The president's office said in a statement that the budget for fiscal 2015/16 would also increase spending on security, a sensitive issue particularly after Islamist gunmen from Somalia's al Shabaab killed 148 people in an attack on Garissa University College on April 2.

"The interventions specifically target modernisation of the military and the police to give them adequate capabilities to deal and vanquish the security threats arising from terrorism," the statement said.

The state said tax reforms were expected to raise total revenues to 20.7 percent of gross domestic product from the National Treasury's target of 20.4 percent for 2014/15.

The budget proposal must now be approved by parliament. The National Treasury cabinet secretary will present the 2015/16 budget to parliament in June.