On 11 January, the Paris Club announced that Kenya would benefit from the Debt Service Suspension Initiative (DSSI) from 1 January to 30 June 2021. At the start of a crucial year in Kenya’s political cycle, the government’s U-turn on an earlier decision not to participate in the initiative does not bode well for the state of public finances.… Read the rest
- Controversial constitutional amendments proffered with the Building Bridges Initiative (BBI) will necessitate a public referendum by mid-2021.
- The referendum will effectively be a high-stakes test-run for the presidential election slated for August 2022.
The Budget Policy Statement (BPS), which is supposed to be passed by Parliament this week, marks an important step in the budget formulation process for FY2020/21, whose implementation starts in July.… Read the rest
● Despite a surge in US air strikes, al-Shabaab shows a hardened resolved in Somalia and appears to step up its game in Kenya.
● The impending AMISOM troop withdrawal from Somalia will put additional pressure on Kenya’s budget as the Kenya Defence Forces will need to take on more responsibility.… Read the rest
On 14 January, President Uhuru Kenyatta announced a surprise cabinet reshuffle as well as several policy initiatives aimed at shoring up his support base. Personnel changes at the ministries of health and agriculture appear to be motivated primarily by the lack of progress concerning Kenyatta’s Big Four development agenda, but also serve to weaken Vice President William Ruto.… Read the rest