Kenya’s economy grew by 5.3pc in the first quarter of 2023.
The National Treasury attributes the growth to increased agricultural activities that reduced food inflation, with the overall economy projected to grow by 5.5pc this year.
Amid public concern such as the high cost of living, high rate of unemployment, increasing tax burdens and wastage of public funds, government will be increasing investments in five strategic sectors including agricultural transformation, micro, small and medium enterprise economy, housing and settlement, healthcare, digital superhighway, and creative industry with an aim to reduce the cost of living, create jobs and achieve an equitable distribution of income according to the Draft 2023 Budget Review and Outlook Paper.
Government is likely to maintain interventions that include the rolling out of fertilizer and seeds subsidies and the granting of duty waiver for importation of key food products such as white maize, and feed additives in order to bridge the food stocks deficit as well as lower and stabilize food prices.
Further government aims to improve revenue collection through the broadening of tax base and controlling overall expenditure; targeting to grow total revenues to 17.9pc of Growth Domestic Products in FY 2023/24 and above 18.3pc of GDP over the medium term.
As treasury seeks views from stakeholders including members of the public, on the draft 2023 Budget Review and Outlook Paper- no later than September 22, government projects the economy to maintain a strong momentum over the medium term backed by a broad-based private sector growth, including continued strong performance of the services sector and recoveries in agriculture.