PwC warns of private sector credit crunch in Mbadi’s budget

NAIROBI, Kenya, June 13 – Audit and advisory firm PwC has warned that increased domestic borrowing to fund recurrent expenditure could cripple private Kenya breaking news | Kenya news today |..

✨ Key Highlights

PwC has warned of a potential private sector credit crunch due to increased domestic borrowing in the 2025/26 budget proposed by Treasury Cabinet Secretary John Mbadi.

Sh635 billion is budgeted for domestic borrowing, significantly impacting fiscal space.
Peter Ngahu, Regional and Country Senior Partner for Eastern Africa at PwC, highlighted the risks of crowding out the private sector from credit markets.
Projected recurrent expenditure will reach Sh3.13 trillion, surpassing ordinary revenue of Sh2.75 trillion, indicating a fiscal imbalance.

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