•  Capital flows: Short term capital inflows which had increased substantially in 2007 flattened out in 2008 above US dollars1.1 billion. Short term capital outflows which have been far less substantial have increased, and we know the dangers and destabilizing effects of these flows. •  Fiscal risks: Expenditures have been below target due to delays in implementing some projects.
There may also be some diversion of expenditure to cater for famine relief and other recurrent expenditures. However, with respect to revenue, the Government is on target despite the fact that the benchmark was on the basis of a more optimistic growth path. Current figures from the Kenya Revenue Authority (KRA) on the last quarter show tax revenues overshooting their target.