2013/2014 budget: Public debt expected to increase.

The public debt will likely increase, as the government’s expected expenditure of 1.6 trillion shillings can barely be financed. One of the ways in which analysts expect the deficit to be plugged is to increase taxes of basic goods like tea, milk, and sugar, or borrow from the domestic market. Alternatively, the government could turn to external sources such as through donors and development partners. Under the Kibaki administration, public debt ballooned, but almost 95 percent of the budget was financed locally (excluding special projects such as free HIV/AIDS drugs undertaken by donors).

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