Kenya is expecting a wider budget deficit of 5.3% of its gross domestic product (GDP) in the 2026/27 fiscal year, up from 4.7% in 2025/26, according to the finance ministry. This is a revision from the earlier estimate of 4.9% of GDP in November.
The deficit will be covered by net external borrowing of 99.5 billion shillings ($772.52 million) and net domestic financing of 1.01 trillion shillings.
Kenya’s economy has been struggling with heavy debt repayments, forcing the government to pursue fiscal consolidation.
The country’s constitution mandates a detailed, multi-stage budget preparation process involving consultations among the Finance Ministry, lawmakers, and the public, with final approval expected by Parliament in June.
