John Aglionby in Nairobi
The Kenyan government plans to cut spending by 1 per cent of gross domestic product in the next six months as it seeks to rein in its ballooning budget deficit and create “buffers” to counter emerging market turbulence.
Kenya’s decision to cut its budget mirrors that of South Africa, which is also trying to reduce public sector spending. Ghana, with help from the International Monetary Fund, is seeking to reduce its budget deficit.
In contrast, Nigeria has decided to increase spending in a bid to boost growth while leaders in Uganda and Zambia, which both face elections this year, are also lifting government spending.