Editing Economy of Kenya (section)

==Government finances==

=== Revenue and spending ===
In 2006, Kenyan government revenue totalled US$4.448B and its estimated expenditures totalled US$5.377B. The government budget balance as a percentage of the gross domestic product improved to −2.1% in 2006 from −5.5% in 2004.<ref name="cp">[http://lcweb2.loc.gov/frd/cs/profiles/Kenya.pdf Kenya country profile] {{Webarchive|url=https://web.archive.org/web/20150505051609/http://lcweb2.loc.gov/frd/cs/profiles/Kenya.pdf |date=5 May 2015 }}. [[Library of Congress]] [[Federal Research Division]] (June 2007). ''This article incorporates text from this source, which is in the [[public domain]].''</ref>

In 2012, Kenya set a budget of US$14.59B with a government revenue of approximately US$12B.<ref>Kenya Budget http://www.pwc.com/ke/en/pdf/kenya-budget-2012-revenue-and-expenditure-highlights.pdf {{Webarchive|url=https://web.archive.org/web/20200804162420/https://www.pwc.com/ke/en/pdf/kenya-budget-2012-revenue-and-expenditure-highlights.pdf |date=4 August 2020 }}</ref>

The 2018 budget policy report set a budget of US$30B. The government revenue was approximately US$29.5B, and a deficit of US$5B was borrowed.<ref>{{cite web|url=http://www.treasury.go.ke/component/jdownloads/send/195-budget-policy-statement/732-2018-budget-policy-statement.html?option=com_jdownloads|title=2018 BUDGET POLICY STATEMENT|work=THE NATIONAL TREASURY, REPUBLIC OF KENYA|access-date=24 March 2019|date=2018-02-01}}{{dead link|date=July 2022|bot=medic}}{{cbignore|bot=medic}}</ref>

In the financial year that ended in June 2020, the [[Kenya Revenue Authority]] collected a tax revenue that amounted to approximately US$15B.<ref>{{cite web| url = https://www.kra.go.ke/en/media-center/press-release/916-annual-revenue-performance-fy-2019-2020| url-status = dead| archive-url = https://web.archive.org/web/20210414143803/https://www.kra.go.ke/en/media-center/press-release/916-annual-revenue-performance-fy-2019-2020| archive-date = 14 April 2021| title = ANNUAL REVENUE PERFORMANCE FY 2019/2020 - KRA}}</ref>

=== Government debt ===
From 1982, Kenya key public debt indicators rose above critical levels, both measured as a percentage of GDP and as a percentage of government revenue.<ref>{{cite web|url=http://erepository.uonbi.ac.ke/bitstream/handle/11295/98782/Kobey_Effect+Of+Public+Debt+On+Economic+Growth+In+Kenya.pdf?sequence=1|title=EFFECT OF PUBLIC DEBT ON ECONOMIC GROWTH IN KENYA|work=GIDEON LEDAMA KOBEY, University of Nairobi|access-date=24 March 2019|date=2016-11-01|archive-date=30 July 2020|archive-url=https://web.archive.org/web/20200730223329/http://erepository.uonbi.ac.ke/bitstream/handle/11295/98782/Kobey_Effect+Of+Public+Debt+On+Economic+Growth+In+Kenya.pdf?sequence=1|url-status=live}}</ref>

In 2002, the last year of [[Daniel arap Moi]]'s administration, Kenya' s public debt stood at almost 80% of GDP. In the last 10 years of the Moi regime, the government was spending 94% of all its revenue on salaries and debt servicing to the IMF, World Bank and other western countries.<ref>{{cite web|url=https://www.ieakenya.or.ke/downloads.php?page=Budget-Guide-2001---2002.pdf|title=Where Will Our Money Go?Guide for Members of Parliament 2002|work=Institute of Economic Affairs, Kenya|access-date=24 March 2019|date=2001-06-01|archive-date=30 July 2020|archive-url=https://web.archive.org/web/20200730221044/https://www.ieakenya.or.ke/downloads.php?page=Budget-Guide-2001---2002.pdf|url-status=dead}}</ref>

In 2003, [[Mwai Kibaki]]'s administration instituted a public debt management department within the treasury department to bring Kenya's debt down to sustainable levels.<ref>{{cite web|url=http://www.treasury.go.ke/publications/category/40-annual-public-debt.html?download=140:annual-public-debt-report-2005-2006|title=ANNUAL PUBLIC DEBT MANAGEMENT REPORT 2005|work=Debt Management Department, Kenya National Treasury|access-date=24 March 2019|date=2005-06-01|archive-date=4 August 2020|archive-url=https://web.archive.org/web/20200804104438/https://www.treasury.go.ke/publications/category/40-annual-public-debt.html?download=140:annual-public-debt-report-2005-2006|url-status=dead}}</ref>

In 2006, Kenya had a current account deficit of US$1.5B. This figure was a significant increase over 2005, when the current account had a deficit of US$495 million. In 2006, the current account balance as a percentage of gross domestic product was −4.2.<ref name=cp/>

In 2006, Kenya's external debt totalled US$6.7B. With a GDP of US$25.83B in 2006, the public debt level stood at 27% of GDP.<ref name=cp/>

In 2011, the national treasury noted that the debt was rising, growing to 40% of GDP in 2009 and to 54% of GDP by 2012.<ref>{{cite web|url=http://www.treasury.go.ke/economy/category/40-annual-public-debt.html?download=144:annual-public-debt-report-2010-2011|title=ANNUAL PUBLIC DEBT MANAGEMENT REPORT 2011|work=Debt Management Department, Kenya National Treasury|access-date=24 March 2019|date=2012-06-01|archive-date=5 August 2020|archive-url=https://web.archive.org/web/20200805042434/https://www.treasury.go.ke/economy/category/40-annual-public-debt.html?download=144:annual-public-debt-report-2010-2011|url-status=dead}}</ref>

In 2019, Kenya's debt had risen to an absolute amount of US$50B against a GDP of US$98B. The public debt level was 51% of GDP in 2019.<ref>{{cite web|url=https://www.centralbank.go.ke/public-debt/|title=Kenya Public Debt|work=Central Bank of Kenya|access-date=24 March 2019|date=2018-09-01|archive-date=1 November 2020|archive-url=https://web.archive.org/web/20201101051127/https://www.centralbank.go.ke/public-debt/|url-status=live}}</ref>

In 2021, Kenya's debt had risen to an absolute amount of US$65B against a GDP of US$101B.The public debt level was 65% of GDP in 2021.<ref>{{cite web|url=http://www.parliament.go.ke/sites/default/files/2021-02/2021%20MEDIUM%20TERM%20DEBT%20MANAGEMENT.pdf|title=Kenya Public Debt|work=The National Treasury|access-date=12 April 2021|date=2021-02-15|archive-date=12 April 2021|archive-url=https://web.archive.org/web/20210412201652/http://www.parliament.go.ke/sites/default/files/2021-02/2021%20MEDIUM%20TERM%20DEBT%20MANAGEMENT.pdf|url-status=live}}</ref><ref>{{cite web|url=http://www.parliament.go.ke/sites/default/files/2021-02/PUBLIC%20DEBT%20MANAGEMENT%20REOPRT%20FOR%202019%20-%202020%281%29.pdf|title=ANNUAL PUBLIC DEBT MANAGEMENT REPORT,2020|work=The National Treasury, October 2020|access-date=4 May 2021|archive-date=4 May 2021|archive-url=https://web.archive.org/web/20210504225455/http://www.parliament.go.ke/sites/default/files/2021-02/PUBLIC%20DEBT%20MANAGEMENT%20REOPRT%20FOR%202019%20-%202020(1).pdf|url-status=live}}</ref>

Kenya's largest bilateral lender since 2011 has been [[China]], and the largest multilateral lender since 1963 has been the [[World Bank]].<ref>{{cite web|url=https://www.businessdailyafrica.com/economy/3946234-5002842-yyabe7/index.html|title=China Top Creditor For Kenya|work=Business Daily Africa|access-date=24 March 2019|date=2019-02-28|archive-date=30 July 2020|archive-url=https://web.archive.org/web/20200730220240/https://www.businessdailyafrica.com/economy/3946234-5002842-yyabe7/index.html|url-status=live}}</ref>

In April 2025, Kenya secured $600 million in short-term financing from commercial banks to support road construction projects, amid persistent budgetary pressures stemming from sluggish tax revenue growth, high debt servicing costs, and increased spending obligations, including at the county level.<ref name=":3">{{Cite web |last=Miriri |first=Duncan |date=16 April 2025 |title=Kenya secures $600 million in short-term financing for roads |url=https://www.reuters.com/world/africa/kenya-secures-600-million-short-term-financing-roads-2025-04-16/ |access-date=23 April 2025 |website=Reuters}}</ref> The financing, backed by securitised collections from the national fuel levy, set at 18 Kenyan shillings (approximately $0.14) per litre, was arranged through the [[List of roads in Kenya|Kenya Roads Board]] to enable access to more affordable credit.<ref name=":3" /> According to [[John Mbadi|Finance Minister John Mbadi]], the funds will be directed toward paying contractors for urgent road maintenance while the government continues to pursue a larger funding arrangement, potentially a $1.5 billion privately placed bond or syndicated loan.<ref name=":3" /> This initiative complements broader efforts by [[William Ruto|President William Ruto]]’s administration, which came into office in September 2022, to address infrastructure financing gaps. Separately, Kenya plans to issue Africa’s first sustainability-linked bond by November 2025, targeting $500 million to support the national budget and contribute to environmental, social, and energy-related goals. This move is part of the government's strategy to manage an anticipated budget deficit of 3.9% of GDP for the fiscal year ending June 2025.<ref>{{Cite news |date=2024-04-17 |title=Kenya to Be First in Africa to Sell Sustainability-Linked Bond |url=https://www.bloomberg.com/news/articles/2024-04-17/kenya-to-debut-500-million-sustainability-linked-bond |access-date=2024-04-17 |work=Bloomberg.com |language=en |archive-date=27 April 2024 |archive-url=https://web.archive.org/web/20240427211256/https://www.bloomberg.com/news/articles/2024-04-17/kenya-to-debut-500-million-sustainability-linked-bond |url-status=live }}</ref>

===Economic Stimulus Programme===
{{Main|Kenya Economic Stimulus Program}}
The Kenya Economic Stimulus Programme was introduced in the 2010–2011 budget plan.[82] The initiative aimed to stimulate economic activity in Kenya through investment in long-term solutions to food insecurity, rural unemployment, and underdevelopment. [https://mwananchicredit.com/ Business loans in Kenya] were a key component of this strategy, providing much-needed financial support to small and medium enterprises (SMEs) to drive growth and innovation. Stated improvement objectives included regional development for equity and social stability, infrastructure, education, affordable health care, environmental conservation, information and communications technology capacity, and access to IT.[83]

===Integrated Financial Management Information System===
The Integrated Financial Management Information System (IFMIS) was launched in 2003 as a digital platform for Kenya's financial information and services, and was later re-engineered by the Ministry of Finance to curb fraud and other malpractices.<ref>{{cite web |title=Republic of Kenya: Ministry of Finance |url=http://www.finance.go.ke/index.php?option=com_content&view=category&layout=blog&id=104&Itemid=153 |access-date=2 August 2011 |publisher=Finance.go.ke}}{{Dead link|date=September 2018|bot=InternetArchiveBot|fix-attempted=yes}}</ref> IFMIS enables integrated budget planning, being linked to planning policy objectives and budget allocation.<ref>{{cite web |author=Nicholas Kerandi (nkerandi@netmedia.co.ke) |url=http://www.pfmr.go.ke/news_details.php?id=30 |title=IFMIS re-engineered to revitalize public financial management |publisher=Pfmr.go.ke |access-date=2 August 2011 |archive-url=https://web.archive.org/web/20120325190123/http://www.pfmr.go.ke/news_details.php?id=30 |archive-date=25 March 2012 |url-status=dead}}</ref>

===Funds for the Inclusion of Informal Sector===
The Fund for the Inclusion of Informal Sector (FIIS) is a fund that allows businesses in the informal economy to access credit financing and other facilities, including financial and banking services.<ref>{{cite web |title=Capital Business |url=http://www.capitalfm.co.ke/business/Kenyabusiness/Sh3.8b-Fund-to-propel-MSE-sector-5714.html |url-status=dead |archive-url=https://web.archive.org/web/20110505063815/http://www.capitalfm.co.ke/business/Kenyabusiness/Sh3.8b-Fund-to-propel-MSE-sector-5714.html |archive-date=5 May 2011 |access-date=2 August 2011 |publisher=Capitalfm.co.ke}}</ref>

===Investor compensation fund===
The Investor Compensation Fund compensates investors who suffer losses from breaches of duty by a licensed stockbroker or dealer, up to a maximum of Sh.50,000 per investor.<ref>{{Cite web|title=CMA's investor compensation fund shrinks|url=https://www.standardmedia.co.ke/article/2000036152/cmas-investor-compensation-fund-shrinks|last=Digital|first=Standard|website=The Standard|language=en|access-date=2020-05-29|archive-date=4 August 2020|archive-url=https://web.archive.org/web/20200804192800/https://www.standardmedia.co.ke/financial-standard/article/2000036152/cmas-investor-compensation-fund-shrinks|url-status=live}}</ref>