Cabinet approves Sh350b increase in budget to appease workers

Increased taxes are however unlikely considering Kenya is heading to an election year, leaving borrowing as the more realistic option to plugging the hefty spending plan shortfall.PHOTO:COURTESY

Higher salaries for public servants will break the bank for taxpayers as Government blows next year's budget spending by Sh350 billion.

Only Sh100 billion is however expressly directed at raising wages, while planned expenditure of the balance of Sh250 billion remains unclear. The Cabinet yesterday approved the increase which takes the national budget to Sh2.6 trillion shillings - most of which will be financed by higher taxes and more loans.