EAC Budgets Compared.

Dear Friends.

Last week on the 11th of June 2009 the members of the East African Community with the exception of Burundi engaged in a highly orchestrated event which involved the presentation of their respective National budgets to their citizens and their wider East African neighbours. This event showcased the enormous coordination that is now being exhibited by the East African Community States.

The current financial crisis and the indirect effects it has had on East Africa led to most of the countries declaring fiscal stimulus measures. All the four budgets increased dramatically over the previous year without increasing taxation. For comparison let’s examine each budget in turn.

Kenya East Africa’s largest economy saw it’s GDP growth rate drop from a growth rate of 7.1% in 2007 to a projected 1.7% this year [2009]. This was caused by the effects of the post election violence, declining tourism revenue, drought and declining remittances from the diaspora. This meant that the finance minister had to take some drastic action to spur growth. This resulted in the largest budget in Kenya’s history. A US$11.13 billion translating into Ksh. 867 billion was announced for the financial year 2009/10. 

Before examining the next country a synopsis of the four countries budgets would be in order for comparison purposes.

  1. Kenya                  US$ 11.13 billion

  2. Tanzania              US$ 7.29 billion

  3. Uganda                US$ 3.70 billion

  4. Rwanda               US$ 1.5 billion

Tanzania Parliament

Tanzania the second largest economy in the region will see it’s expenditure rise by 31%. Tanzania saw it’s earnings from minerals and other commodities reduced as a result of lower world prices. The manufacturing sector also saw reduced activity. It did however record good growth in telecommunications, fisheries and Agriculture which led to a growth of 7.4% up from 7.1% in 2007.

Uganda’s economy is projected to grow this year at 6% down from 7% last year. This slower growth is still much higher than Kenya’s for example which grew by 1.7%. However the reduced growth is still of concern to the govt and therefore led to a fiscal stimulus in energy and mining which will see a 52% increase in spending. Total spending will increase from Ush. 6.16 trillion to Ush. 7.08 trillion in 2009/10.


Finally Rwanda which aims to become the Singapore of Africa has also seen an increase in it’s budget by 24% from the previous year. This is the first time that Rwanda is reading it’s budget in conformity to the EAC member states. Spending on infrastructure like other member states will increase to US$ 330.1 million.




1 Response so far »

  1. 1

    LeraJenkins said,

    What words… super, excellent idea

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