Mbadi defends Sh1 trillion domestic borrowing plan
Teh CS said internal borrowing would not disadvantage businesses that also rely on local banks for credit...
✨ Key Highlights
Treasury Cabinet Secretary John Mbadi has defended the government’s plan to borrow Sh1 trillion from local banks to finance the 2026/2027 budget, assuring the private sector that local lenders have sufficient capacity without crowding out businesses.
- The government faces a budget deficit of Sh1.1 trillion due to reduced revenue and rising expenditure.
- Mbadi dismissed concerns that banks would prioritize government lending, stating Kenya has a robust financial sector.
- Domestic borrowing aims to reduce reliance on external loans, which are subject to fluctuating interest rates and US dollar strength.
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Treasury Defends NIF and Sh1 Trillion Borrowing Plan as Court Rejects Bid to Save Presidential Offices - February 2026
Treasury Cabinet Secretary John Mbadi has defended the government’s plan to borrow Sh1 trillion from local banks to finance the 2026/2027 budget, assuring that lenders have sufficient capacity without crowding out the private sector. The National Treasury also defended the proposed National Infrastructure Fund (NIF) amidst a High Court challenge, clarifying it is a government-owned company, not a constitutional public fund. In a separate matter, the High Court rejected an application to suspend a previous judgment that nullified the creation of presidential advisory offices. Justice Bahati Mwamuye ruled the request was res judicata, as the same arguments had been dismissed before.
