Government spending outside approved budgets has surged dramatically, reaching Sh276.99 billion in the first nine months of the 2025/26 financial year. This represents a nearly sixfold increase compared to the previous year, raising concerns about fiscal discipline.

• Spending under Article 223 of the Constitution jumped to Sh276.99 billion by March 31, 2026.
• The Controller of Budget (CoB) issued a warning over the significant increase in expenditure.
• This surge occurs amidst mounting fiscal pressures, including a public debt that reached Sh12.82 trillion by March 2026.

The Central Bank of Kenya (CBK) forecasts continued stability for the Kenya Shilling against the U.S. Dollar, attributed to tightly controlled interbank lending rates. The dollar currently stands at Ksh129.41.

• The Kenya Shilling Overnight Interbank Average (KESONIA) is closely aligned with the Central Bank Rate (CBR) at 8.75 per cent, indicating a liquid and orderly banking system.
• CBK Governor Kamau Thugge highlighted this alignment as crucial for enhancing monetary policy transmission and reassuring foreign investors.
• This stability comes as the CBK retained its benchmark lending rate at 8.75 per cent to anchor domestic inflation expectations amid global pressures, though it lowered the 2026 economic growth forecast to 4.9 per cent.

Kenyan government agencies have accumulated a staggering Sh465.87 billion in unpaid bills as of March 31, 2026, highlighting severe liquidity issues amidst a surging public debt of Sh12.82 trillion.

• The outstanding bills consist of Sh271.16 billion for recurrent expenses and Sh194.71 billion for development projects.
• The Controller of Budget (CoB) released the report, which also notes significant delays in procurement processes attributed to challenges with the Electronic Government Procurement (e-GP) system.
• Kenya's public debt surged by 9 percent in the first nine months of the 2025/26 financial year, with domestic debt increasing by 13 percent.