Kenya's economic growth for the current fiscal year has dropped by half a point to 4.5 per cent, according to the World Bank in its Kenya Economic Update report.
In the report launched on Tuesday, May 27, the global lender cited high levels of debt, high lending rates and a decline in private sector credit.
Although Kenya's public debt remains at high risk of distress, with interest payments absorbing about a third of tax revenue, the bank stated that certain reforms could strengthen its fiscal sustainability.
As such, the Public Finance Review (PFR) has outlined several fiscal policies that could enhance Kenya's tax system to turn around its economy, including the exclusion of capital gains for various sectors.
