Economically, the region appears to be riding a crest, with the three countries registering a GDP growth of above 7% in 2007/08, largely propelled by the telecommunications, tourism and manufacturing sectors. Whereas Kenya expects the GDP growth to decline to 4.5% in the 2008/09 fiscal year, Uganda and Tanzania expect to continue with their impressive growth.
Going forward, the three governments have made a deliberate shift to rely on domestic revenue to fund the budgets, with the foreign budgetary support expected to be below 10% in Kenya and below 35% in Uganda and Tanzania.
Despite the high expectations, especially in Uganda and Tanzania, the three countries will face the challenge of maintaining GDP growth amid a turbulent global economic environment which has seen the cost of petroleum and foodstuff spiral. The impact of the price increases is already causing concerns in Kenya where inflation climbed to over 30% by end of May 2008.
Here are the Budget Briefs:
kpmg_budget_brief_2008_kenya.pdf, Size: 551.8 KB© 2009 KPMG East Africa Limited, a Limited Liability Company and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved.
