Kenya Revises Budget Amid Political Turmoil

Kenya's government plans to cut 2024-25 spending by 1.9% and widen the fiscal deficit to 3.6% of GDP following mass protests against tax hikes. President Ruto responded by firing most of his cabinet and proposing reforms. The supplementary budget awaits parliamentary approval.

Kenya's government has announced plans to slash 2024-25 spending by 1.9% and expand the fiscal deficit to 3.6% of GDP in a revised budget. This decision follows mass protests that forced a rollback of proposed tax hikes.

In response, President William Ruto dismissed nearly his entire cabinet and signaled the formation of a broad-based government to address public grievances. Protests initially sparked by the tax hikes have escalated to demands for Ruto's resignation and widespread political reforms.

The supplementary budget, signed by principal treasury secretary Chris Kiptoo, estimates total spending to drop to 3.87 trillion Kenyan shillings ($30 billion). Lawmakers will debate the new budget next week as Ruto navigates demands from both international lenders and a populace grappling with high living costs.