Economics
Kenya’s Oft-Revised Fiscal Gap Is Its Achilles Heel, Citi Says
- Budget-deficit forecast changed three times this fiscal year
- Investor sentiment positive after naming of new Treasury head
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Kenya’s budget deficit is its Achilles heel and investors want to see real proof that it’s being tamed in a sustainable way, according to Citigroup Inc.
In November the National Treasury of East Africa’s biggest economy raised the budget-gap projection for the year through June for a third time to 6.3% of gross domestic product. In recent years, the finance ministry repeatedly modified its financing shortfall and failed to hit those forecasts, making its estimates seem unreliable.