Kenya Treasury Projects Wider US$8.9 Billion Budget Deficit
Kenya · ECONOMY Key Facts —Deficit size: Kenya’s Treasury projects a fiscal deficit of about KSh1.15 trillion (about US$8.9 billion) for the financial year 2026/27, equal to 5.3 to 5.5 percent of gross domestic product. —Wider gap: The projected deficit is up from roughly 4.7 to 4.8 percent of gross domestic product in the 2025/26 […] The post Kenya Treasury Projects Wider US$8.9 Billion Budget…
Kenya's Treasury has projected a budget deficit of approximately KSh1.15 trillion, equivalent to US$8.9 billion, for the financial year 2026/27. This deficit represents 5.3 to 5.5 percent of the country's gross domestic product (GDP), up from around 4.7 to 4.8 percent in the previous fiscal year. The 2026/27 budget, presented by Treasury Cabinet Secretary John Mbadi on June 11, 2026, outlines overall expenditure of about KSh4.82 trillion (approximately US$37 billion).
The deficit will be financed through foreign disbursements totaling KSh225.5 billion (about US$1.7 billion) and domestic borrowing amounting to KSh924 billion (around US$7.2 billion), as shown in parliamentary material. The budget also highlights a significant interest and pension bill of KSh1.46 trillion (about US$11.3 billion), indicating how debt service costs are consuming resources that could otherwise be allocated to development spending.
Looking ahead, Kenya anticipates a narrower fiscal deficit of 3.6 percent of GDP for the 2027/28 financial year, according to Reuters.
Written by urgent.news from The Rio Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
