Kenya plans first Ksh5.3T budget as deficit remains above Ksh1.3T
Kenya is preparing its largest national budget in history, with spending for the 2027/28 financial year expected to rise above Ksh5 trillion for the first time even as the government targets a lower budget deficit. The National Treasury has proposed a Ksh5.323 trillion budget for FY 2027/28, according to the Draft Budget Review and Outlook […]
Kenya is set to unveil its largest budget ever, a Ksh5.323 trillion plan for the 2027/28 financial year, even as the government aims to narrow the budget deficit. The National Treasury's Draft Budget Review and Outlook Paper indicates the deficit is projected at Ksh1.321 trillion, or 5.7% of GDP, a slight improvement from 6.2% in the previous fiscal year.
Despite the deficit reduction, the government will still need to borrow heavily, with Ksh1.085 trillion expected from the domestic market and Ksh235.9 million from external sources. Most of the spending will go toward salaries, debt servicing, and other recurrent costs, accounting for 73% of the total budget. The budget prioritizes enhancing domestic revenue mobilisation, prudent expenditure management, and public financial management reforms.
Officials emphasize the need for continued fiscal consolidation, revenue collection improvements, and careful expenditure management to restore fiscal space. Although the projected deficit is lower than the current year's target, Kenya's public debt remains a concern, with the debt-to-GDP ratio projected at 65.6% in 2026, above the government's long-term benchmark of 55%.
Written by urgent.news from People Daily Kenya's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
