Budget: Long-Term Growth A Clear Priority

BMI View: We are forecasting a widening of Kenya's budget deficit to KES229.7bn (6.4% of GDP) in 2009/10, from KES160.2bn (5.2% of GDP) in 2008/09, owing to various tax breaks and heavy spending on infrastructure. With around 29% expected to be funded by foreign sources, a renewed wave of international risk aversion poses key risk to the spending plans.

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