Irony of Treasury admitting borrowing not sustainable, then going for more
Treasury admits reliance on borrowing to finance budget not sustainable...
✨ Key Highlights
Kenya's National Treasury Principal Secretary, Chris Kiptoo, has acknowledged that the country's reliance on borrowing to finance its budget is unsustainable, even as the government plans to borrow more to cover a Sh1.12 trillion deficit for the 2025/26 financial year.
- The planned enhanced borrowing will push Kenya's debt stock to a total of Sh12.8 trillion.
- Chris Kiptoo identified fiscal consolidation, including expanding the tax base, as the only solution to avert a financial crisis.
- The supplementary budget, which necessitates additional borrowing, includes funds for salary reviews and commitments to an implement 2025-29 Collective Bargaining Agreement for teachers and civil servants.
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Treasury warns Kenya’s Sh1.12tn budget deficit threatens fiscal stability - April 2026
Kenya's Treasury has warned that a projected budget deficit of Sh1.12 trillion for the upcoming fiscal year poses a significant threat to the nation's fiscal stability, a sharp increase from the previous budget. Kenya's National Treasury Principal Secretary, Chris Kiptoo, has acknowledged that the country's reliance on borrowing to finance its budget is unsustainable, even as the government plans to borrow more to cover the deficit for the 2025/26 financial year. The National Treasury has separately hired G&A Advocates for Sh358 million to represent Kenya in a London arbitration case concerning the revoked sale of Sh6.19 billion in Telkom Kenya shares. The Kenyan National Assembly has also approved the government's plan to sell a portion of its stake in Safaricom to Vodacom, allowing the State to offload shares effective April 1, 2026.
