President William Ruto's administration is projected to borrow a record Sh1.03 trillion from local sources in the 2026-27 fiscal year, a move that contradicts his earlier promise to end deficit-driven borrowing.

• The government plans to spend Sh4.82 trillion against expected revenue of Sh3.63 trillion, creating a deficit of Sh1.146 trillion.
• Key players include the Kenyan Treasury and the Central Bank of Kenya, with analysts from firms like KPMG warning of potential economic impacts.
• This significant domestic borrowing could "crowd out" private sector credit, raising interest rates and hindering investment, while talks with the International Monetary Fund (IMF) remain stalled over transparency issues.