East Africa budgets face low revenues and growing debt

East African economies are still grappling with shrinking credit to the private sector, ballooning public debt, volatility of local currencies against the dollar, high cost of power and the recent floods, that destroyed crops and infrastructure, pointing to reduced agricultural output this year and more expenditure on crucial infrastructure rehabilitation.

The high cost of electricity and its availability have been of concern to foreign investors, especially in Uganda. In Kenya, it is estimated that more than 30 per cent of the annual budget is lost to corruption and tax cheating. In Uganda, about 30 per cent of eligible VAT is not collected, translating into a loss of four per cent of tax to gross domestic product.

Full article: The East African

 

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