The Kenyan government is expected to increase its borrowing from the domestic market following a decision to reduce the Value Added Tax (VAT) on fuel. This move is projected to lead to a tightening of credit availability for households and businesses.

• The National Treasury is anticipating a significant revenue gap due to the fuel VAT cut.
• National Treasury CS John Mbadi appeared before the National Assembly Finance and Planning Committee regarding the fiscal situation.
• The strategy to borrow domestically is intended to cover the shortfall in government revenue.