Kenya mulls stimulus package for South Sudan

Kenya is discussing an economic stimulus package for South Sudan, which has been hit by an oil commodity shock and an economic crisis, Treasury Cabinet Secretary Henry Rotich said Tuesday.

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Spining

“We had preliminary discussion for a loan. They were hit heavily because of the oil prices. A lot of Kenyan businesses are heavily involved in that economy,” Rotich told a news conference.

South Sudan sent a delegation to Nairobi for talks on the possible loan of 60 million U.S. dollars to help Juba meet urgent costs including for food needs to plug income gaps.

South Sudan’s oil production has dropped from 240,000 barrels per day in 2013, the peak oil production period before the start of conflict, to 120,000 barrels per day, currently selling at 50 dollars a barrel.

The drop in oil earnings has affected state expenditure and forced governments to cut spending on key sectors.

Responding to questions about the potential expenditure cuts by the Kenyan government, Rotich said the government was forced to make “one-off expenditures to finance next year’s Presidential and Parliamentary elections.

He said a government debt management strategy was meant to curb public spending and loans to 7.5 percent of the country’s Gross Domestic Product (GDP). Enditem

Source: Xinhua/NewsGhana.com.gh

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