State abandons austerity, borrows extra Sh114 billion

Suspended Treasury Cabinet Secretary Henry Rotich holds the briefcase with Kenya 2019/2020 Budget. [Standard]

The Government found it difficult to stick to its own austerity plan, borrowing an additional Sh114 billion in the last financial year.

The National Treasury borrowed Sh770 billion in the 2018/19 financial year that ended in June against an initial target of Sh635.5 billion, or 6.3 per cent of the GDP, as increased wages and interest on loans forced the country back into the debt market.