Treasury projects Sh1.15tn budget deficit as spending hits Sh4.8tn

Presenting the 2026/27 budget statement to MPs, Mbadi said government revenue will continue to be anchored on ordinary collections, supported by external aid and grants, even as spending pressures remain heavily concentrated on recurrent expenditure. Kenya breaking news | Kenya n..

✨ Key Highlights

The National Treasury projects a significant budget deficit of Sh1.15 trillion for the 2026/27 financial year, with the government planning expenditures of Sh4.8 trillion against anticipated revenues of Sh3.64 trillion.

Sh1.15 trillion budget deficit projected for the 2026/27 financial year.
National Treasury, presenting the 2026/27 Budget in Parliament.
The deficit will be largely financed through Sh1.03 trillion in domestic borrowing, while recurrent spending is set to dominate expenditures at Sh3.5 trillion.