Connect with us

VenturesNow

Kenya to increase borrowing as budget gap grows

Published

on

Kenya is likely to borrow another Sh600 billion this financial year after revenue shortfalls, pushing the country deeper into the debt trap.

It had earlier been forecast that borrowing would be capped at Sh558.9 billion.

Despite a pinching tax on fuel, the gap between spending and revenues has continued to increase, prompting the Treasury to revise targets for the Kenya Revenue Authority (KRA).

The budget deficit has grown to Sh600 billion, with tax revenues expected to drop to Sh1.8 trillion, down from Sh1.9 trillion projected in the 2018/19 Budget.

Finance Principal Secretary Kamau Thugge said the dismal results from the taxman made the Government to revise its expectations.

Read also: UK gives Ghana £20m grant

“We had made projections based on what we expected KRA would collect but performance was bad, especially the last three months and so we had to adjust,” Dr Thugge said.

This means that Kenya’s targeted fiscal deficit will rise to six per cent, from a targeted 5.7 per cent, which was still seen as high by the International Monetary Fund (IMF) and formed its basis to push for debt management.

Kenya’s financing deficit over the past few years has been oscillating between 8.4 per cent in 2014 to 7.4 per cent in 2015, then 8.8 per cent in 2016 and last year, it stood at 6.9 per cent. The plan was to cut it to 5.7 per cent this year and then 4.3 per cent next year.

VenturesNow

Tanzanian Central Bank reduces economic liquidity to curb rising inflation

Published

on

The Tanzanian Central Bank on Saturday said one of the measures it has taken to slow down rising inflation in September and October is to reduce the liquidity in the economy.

A statement published by the east African country’s apex bank’s Monetary Policy Committee (MPC), said inflation in the country has been on the rise since the beginning of the year, rising from 4.6% on August from a previous 4.5% in July.

MPC said while the country’s economy was facing a range of challenges, including weak global growth, high commodity prices, tight financial conditions and the recurrence of COVID-19 in some countries, it was necessary to reduce the liquidity to stabilise the economy.

“In the context of high inflation and commodity prices, which has contributed to rising inflationary pressures in the country, the MPC approved for the bank to continue with gradual reduction of liquidity in September and October 2022.

“The policy decision aims at reducing inflationary pressures, while safeguarding economic activities,” the statement said.

Continue Reading

VenturesNow

Air traffic controllers in West, Central Africa suspend strike for negotiations after 48-hour disruption

Published

on

The industrial action by air traffic controllers in West and Central Africa has been suspended.

The unions announced the suspension after a 48-hour strike having disrupted flights across the region and left hundreds of passengers stranded at airports.

According to a statement by the Union of Air Traffic Controllers’ Unions (USYCAA), the decision to suspend its strike notice for 10 days immediately so as to allow for negotiations.

“Air traffic services will be provided in all air spaces and airports managed by ASECNA from today Saturday, September 24, 2022 at 1200 GMT,” the statement said.

One of the stranded passengers, Nsoh Brinston, lamented on how the strike would make him spend more than his budget on his intended travel to Kigali, Rwanda.

“I will have to spend more than I intended due to the cancelled flight. I will have to do another COVID test which costs 30,000 CFA francs ($45),” he said.’

Also, eight flights scheduled to leave the commercial hub of Abidjan on Saturday were cancelled in Ivory Coast.

Industries like aviationtelecom operators have all their operations disrupted across Africa lately largely as part of the fallout of the Russian/Ukraine war which has caused a hike in aviation fuel.

It is yet to be seen if the negotiations between air traffic controllers and government authorities will birth lasting solutions to the challenge which now cuts across the continent.

Continue Reading

EDITOR’S PICK

Metro14 mins ago

Two Liberian Maritime officials arrested for alleged rape in South Korea while on seminar

Two top Liberian Maritime Authorities staff who were in South Korea for a seminar were on Saturday, arrested and detained...

Metro23 mins ago

Interim Malian PM accuses France of stabbing country in the back following withdrawal of troops

Interim Mali’s Prime Minister, Abdoulaye Idrissa Maïga, has accused its former colonial masters, France, of “stabbing” the West African country...

VenturesNow31 mins ago

Tanzanian Central Bank reduces economic liquidity to curb rising inflation

The Tanzanian Central Bank on Saturday said one of the measures it has taken to slow down rising inflation in...

Culture2 hours ago

(VIDEO) Nigerian Afrobeat star, Burna Boy locks down South Africa as over 100,000 attend ‘DSTV Delicious Festival 2022’

Nigerian Afrobeats star, Burna Boy, on Saturday night, showed, yet again, why he is the undisputed “African Giant” when he...

Metro4 hours ago

Terrorists strike in Northwest, Nigeria again, kill 15 in attack in mosque

In Nigeria, there has been another terrorist attack as a gang of armed men killed at least 15 people at...

Sports4 hours ago

Egypt announces plans to bid for 2036 Olympic games. Will they get it?

Egypt’s youth and sports minister has revealed that the North African country will apply to host the Summer Olympic Games...

Culture4 hours ago

DRC filmmakers, Balufu brothers, accuse Belgian producer, Thierry Michel, of plagiarism

Controversy has continued to trail the 2021 movie by Belgian filmmaker, Thierry Michel, “Empire of Silence” in the Democratic Republic...

Politics21 hours ago

Somaliland electoral body, SLNEC, postpones presidential election. Here’s why

Somaliland has postponed its presidential elections to next year from its initial scheduled date in November. The region’s electoral body,...

VenturesNow23 hours ago

Air traffic controllers in West, Central Africa suspend strike for negotiations after 48-hour disruption

The industrial action by air traffic controllers in West and Central Africa has been suspended. The unions announced the suspension...

VenturesNow24 hours ago

Trevali to close Burkina Faso zinc mine months after deadly flood kills 8

Five months after a deadly flood that got eight local miners stuck and eventually die at the Perkoa zinc mine...

Trending