Mbadi warns fiscal, climate risks could undermine Kenya’s 5.3pc growth outlook
Mbadi said extreme weather shocks such as droughts and floods, which continue to threaten agriculture, infrastructure, and food security, could undermine the growth forecast of 5.3 per cent potentially destabilizing an otherwise promising recovery. Kenya breaking news | Kenya new..
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Kenya’s Treasury Cabinet Secretary, John Mbadi, has warned that escalating fiscal pressures and climate vulnerabilities could undermine the nation's projected economic growth of 5.3 percent. These risks, including extreme weather events and global economic disruptions, threaten to derail an otherwise promising recovery, despite resilient sector performance.
- Kenya's public debt is estimated at 65–68 percent of GDP, exceeding the sustainable threshold of approximately 55 percent.
- Treasury Cabinet Secretary John Mbadi highlighted the risks during the launch of the FY 2026/27 budget process.
- Public debt servicing obligations are projected to surge from Sh495 billion in 2025 to Sh822 billion in 2026.
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Kenya Faces Fiscal Risks and KSh 217.6B Capital Outflow as Parliament Debates Aviation Levy - August 2025
Kenya’s net capital outflows quadrupled to KSh 217.6 billion in 2023, with a significant amount moving into offshore financial centers like the Isle of Man, which absorbed nearly a quarter of the transfers. This occurred despite a 28.8% decrease in foreign inflows. Treasury Cabinet Secretary John Mbadi has warned that these escalating fiscal pressures, along with climate vulnerabilities, could undermine the nation's projected economic growth of 5.3 percent. Mbadi noted these risks threaten to derail an otherwise promising recovery. In a related fiscal matter, Parliament is debating the Air Passenger Service Charge (Amendment) Bill, 2025, which would alter how proceeds from the aviation levy are distributed to include the Tourism Fund and the Kenya Meteorological Service Authority.
