Recurrent spending tops Sh4 trillion in new budget plan
NAIROBI, Kenya, Oct 23 – The government’s recurrent spending is projected to exceed Sh4 trillion for the first time in the 2027/28 financial year, as the proposed national budget rises…
The Kenyan government's proposed budget for the 2027/28 financial year anticipates recurrent spending to surpass Sh4 trillion, marking a significant milestone. The Draft Budget Policy Statement 2027 anticipates recurrent expenditure to rise to Sh4.021 trillion, an increase from the previously estimated Sh3.887 trillion. Development spending, however, is expected to decrease to Sh915.8 billion, a decline from the earlier estimate of Sh958 billion.
The National Treasury forecasts revenue collection to amount to Sh4.004 trillion, up from the earlier projection of Sh3.943 trillion. Expected revenue from ordinary sources is projected to grow to Sh3.249 trillion, an increase from the earlier estimate of Sh3.208 trillion. Despite the anticipated revenue boost, the budget deficit is projected to widen to Sh1.353 trillion, equivalent to 5.9 percent of the country's GDP, from the earlier estimate of Sh1.321 trillion, or 5.7 percent of GDP.
The government intends to borrow Sh929.1 billion from the domestic market, a decrease from the earlier estimate of Sh1.085 billion. External borrowing is expected to rise to Sh423.8 billion, an increase from the earlier estimate of Sh235.9 billion. The Treasury has extended an invitation to the public to submit their comments on the draft policy statement by November 16.
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