{
  "id": 3023009,
  "title": "Kenya to borrow Ksh1.15T to finance 2026/27 budget deficit",
  "url": "https://urgent.news/2026/08/24/kenya-to-borrow-ksh1-15t-to-finance-2026-27-budget-deficit",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-08-24T12:55:46.000Z",
  "source": {
    "name": "People Daily Kenya",
    "slug": "people-daily-kenya",
    "url": "https://peopledaily.digital/business/kenya-to-borrow-ksh1-15t-to-finance-2026-27-budget-deficit"
  },
  "original_language": "en",
  "account": "Kenya intends to borrow Ksh1.15 trillion during the fiscal year 2026/27 to cover its budget deficit, as outlined in the National Treasury’s Annual Borrowing Plan. This borrowing is a part of the government's overall financing requirement of Ksh1.996 trillion for the year, which includes settling the deficit and refinancing existing debt. The plan, posted on the Treasury's website on August 24, 2026, under the Public Finance Management Act, details how the government intends to raise funds while managing borrowing costs and debt risks. Most of the net financing requirement is expected to be met through domestic borrowing, with an anticipated Ksh898 billion coming from domestic sources and Ksh247.2 billion from external sources. The total net financing requirement for the fiscal year is projected to be Ksh1.145 trillion, representing 5.5 percent of the GDP. The government anticipates raising Ksh987.4 billion through domestic borrowing, mainly via Treasury bills and bonds. External financing is expected to amount to Ksh247.2 billion after accounting for debt repayments, with gross external borrowing forecasted at Ksh660.1 billion, comprising commercial borrowing, project loans, and programme loans. This borrowing strategy prioritizes domestic debt over foreign financing to mitigate exchange rate risks and manage external debt exposure. The borrowing plan follows Kenya's public debt reaching Ksh13.01 trillion by June 2026, a 9.22 percent increase from the previous year. The debt stock consists of Ksh7.33 trillion domestic debt and Ksh5.68 trillion external debt, making up 56.3 percent and 43.7 percent of the total debt, respectively. The fiscal deficit for the 2026/27 financial year is estimated at Ksh1.145 trillion, or 5.5 percent of GDP. The Annual Borrowing Plan will be in effect from July 1, 2026, to June 30, 2027, and may be adjusted based on economic and financial conditions.",
  "summary": "Kenya plans to borrow Ksh1.15 trillion during the 2026/27 financial year to finance its fiscal deficit, according to the National Treasury’s Annual Borrowing Plan. The borrowing forms part of the government’s Ksh1.996 trillion gross financing requirement for the financial year, which includes funding the budget deficit and refinancing maturing debt. The Annual Borrowing Plan was […]",
  "key_points": [
    "Kenya plans to borrow Ksh1.15 trillion in 2026/27 to cover budget deficit",
    "Domestic borrowing to account for Ksh898 billion of net financing requirement",
    "External financing forecasted at Ksh247.2 billion for fiscal year"
  ],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}