Boost compliance in informal sector to plug revenue gaps

The 2015-16 fiscal year has been characterised by a challenging macroeconomic environment. This has seen Kenya’s GDP growth downgraded by the Treasury, International Monetary Fund and World Bank from 6.9 per cent, 6 per cent and 6.9 per cent — to 6 per cent, 5.4 per cent and 5.6 per cent, respectively.

But the growth projections for 2015-16 were a bit ambitious, and appear to have been based on the projected impact of the Government’s spending on infrastructure. However, during the year, policy makers and other observers have realised that the projected growth is unattainable.