Kenya expects its budget gap to shrink to 3.6% of GDP in the 2027/28 fiscal year, down from the 5.5% projected for 2026/27, according to Finance Ministry Principal Secretary Chris Kiptoo.
Speaking at the launch of public hearings for the 2027/28 budget on Wednesday, Kiptoo said the improvement reflects stronger fiscal management ahead of the next election cycle.
The ministry also upgraded its outlook for economic growth. GDP is forecast to expand by 5.1% in 2027 and 5.2% in 2028, up slightly from an estimated 5.0% this year. That’s a modest adjustment from the 5.2% growth rate the ministry had projected for 2027 back in June.
Finance Minister John Mbadi gave the earlier 5.5% deficit figure for 2026/27 during budget remarks last month.
Because general elections are scheduled for August next year, the government plans to table the 2027/28 budget to parliament earlier than the usual June timeline.
The budget hearings will gather public input before the final estimates are drafted.
