Kenya's President William Ruto has announced a new way to collect VATable taxes that will raise the amount of money collected from 60% to 90%.
As part of the plan to get the country out of debt, the Kenya Revenue Authority (KRA) wants to get an extra KES 500 billion by June 2023.Last year, KRA got KES 2.031 trillion in revenue, which is more than the KES 1.669 trillion it got the year before.
The government has also made a Supplementary Budget that aims to cut borrowing goals by KES 300 billion. In FY2022/23, KES 581.7 billion is set aside for borrowing from within the country, and KES 280 billion is set aside for borrowing from outside the country.
Kenya's government debt has risen to KES 8.74 trillion, or 62.3% of GDP.
External debt and domestic debt together total 4.2 trillion Kenyan shillings (KES) according to the 2021-2022 Quarterly Economic and Budget Review report.
According to the Weekly Bulletin published by the Central Bank of Kenya in December 2021, the national debt rose from KES 7,996.30 billion in September 2021 to KES 8,206.74 billion.
The government has taken steps, such as the Hustler Fund, which have already saved KES 600 million in the first month, to avert default on its obligations.
The Kenyan people may rest confident that our government will not default on our obligations," President Ruto said. Our ability to borrow money has been severely restricted. To borrow no more than is strictly necessary.
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