Politics
Kenya Protests May Cause Ksh 200B Deficit in 2024/25 Budget
The demonstrations and related economic pressures have not just impacted but severely shaken Kenya’s revenue, with potential losses amounting to hundreds of billions of shillings. The scale of these losses underscores the gravity of the situation.
Severe Economic Impact: Ongoing Protests in Kenya Cause Revenue Losses Amounting to Hundreds of Billions of Shillings
:Kenya has experienced significant revenue losses due to recent demonstrations and the economic impact of high taxes and inflation.
By Charles Wachira
The Kenya Revenue Authority (KRA) has missed its tax targets by substantial margins, amounting to a shortfall of approximately Khs 27 billion (US$209,302,323.30) in the last quarter of 2023.
Moreover, projections for the fiscal year 2024 indicate a potential shortfall of around Ksh 300 billion (US$2,325,581,370.00) due to decreased consumer spending on highly taxed items such as fuel, telephone calls, and meals.
Unrest and economic instability have forced the government to reconsider its budget plans. Lawmakers have indicated that the ongoing protests could create a deficit of Ksh 200 billion (US$1,550,387,580) in the 2024/25 budget, necessitating significant and immediate spending cuts.
In summary, the demonstrations and related economic pressures have not just impacted but severely shaken Kenya’s revenue, with potential losses amounting to hundreds of billions of shillings. The scale of these losses underscores the gravity of the situation.
Keywords: Kenya Revenue Shortfall 2023:KRA Tax Deficit: Economic Instability in Kenya:Budget Cuts Fiscal Year 2024:Impact of Protests on Kenya’s Economy