Treasury should heed MPs’ caution on budget
The government should consider scaling down expenditure instead of borrowing more...
✨ Key Highlights
Kenyan lawmakers are cautioning the National Treasury against its Sh4.82 trillion budget for the 2026/27 financial year, citing the risks posed by rising public debt and high oil prices amid global instability.
- The proposed budget is deemed potentially unsustainable due to escalating fuel prices caused by the conflict involving the United States and Israel against Iran.
- Key stakeholders include the Members of the National Assembly Committee on Finance and National Planning who fear increased debt burden.
- Noteworthy details include a reduced economic growth forecast to 4.8 per cent and a public debt already at 65.3 per cent of GDP, exceeding the statutory ceiling.
Continue Reading
Read the complete article from Nation News
Part of the Day's Coverage
Finance Bill 2026 Draws Mixed Reactions From Stakeholders - May 2026
Kenyan businesses broadly support a proposed tax amnesty program under the Finance Bill 2026, but are urging lawmakers to extend deadlines and reform laws surrounding tax refunds to avoid liquidity issues. Kenya's private sector is pushing back against the proposed digital tax in the Finance Bill 2026, warning it could harm financial flows and the tax base. Stakeholders and the National Assembly's Finance Committee are raising concerns about potential system inefficiencies at the Kenya Revenue Authority, opposing a proposal to shorten the annual tax filing deadline. Separately, Kenyan lawmakers are cautioning the National Treasury against its Sh4.82 trillion budget for the 2026/27 financial year, citing the risks posed by rising public debt and high oil prices amid global instability.
