Kenya’s 2025 Budget: Relief or a Deeper Economic Crisis?
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By Robert Mutasi
Many people are talking a lot about Kenya's national budget for 2025 because it might help make life easier for the people, or it could make things harder.
Whether this funding helps reduce or makes worse the problems of rising prices, unemployment rates, and government debt depends on how inflation behaves.
The government has promised to spend more money on improving roads, health care, and schools.
However, there are still concerns about whether the money from higher taxes and loans from other countries will really help.
Another argument about the budget is the increase in taxes. Money collected from taxes is expected to increase by raising the tax on essential gadgets.
This might help fix the budget shortfall, but it could mean that low-income people and small businesses will have to spend a good amount of money, which is tough for them because living costs are already going up.
People worry that this will reduce the money they have to spend, which could slow down the economy.
As a result, businesses might feel the effects when customers spend less.
The national debt has always been a big problem. Kenya's debt has gone over 10 trillion Kenyan shillings, which raises worries about whether it can be managed properly.
The government claims that borrowing from other countries is for important projects, but critics say this reliance on debt could put future generations in a difficult situation.
Big debts need a lot of money, which can seriously hurt important services for people. Kenya has a lot of debt from large countries, which puts it in danger of facing money problems.
The country doesn't have good plans in place to pay off this debt. Even with these challenges, the financial situation looks good.
With more money going into fitness and training, many thousands of Kenyans would benefit. Besides this, investing in infrastructure leads to the growth of many other financial activities.
To prevent corruption, we need to carefully put all these things into action.
There are risks and possibilities. If handled well, it could lead to growth and stability.
However, right now, the financial situation for regular people is getting worse because there haven't been good rules for borrowing and taxes.
The best way to find balance should work together with taking action, making sure that there is peace in Kenya while healing takes place.
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