Key facts
- Kenya's budget deficit is projected to reach 5.9% of GDP in fiscal year 2027/28.
- The deficit is expected to increase from 5.5% of GDP in fiscal year 2026/27.
- Net domestic financing for 2027/28 is forecast at 929.1 billion Kenyan shillings.
Kenya budget deficit seen rising to 5.9% of GDP in 2027/28
IN SHORT
Kenya's budget deficit is projected to increase to 5.9% of gross domestic product in the 2027/28 fiscal year, up from an estimated 5.5% in 2026/27, according to the finance ministry. Net domestic financing is expected to decrease, while net external financing is forecast to rise.
Key Numbers
5.9%Kenya budget deficit as % of GDP in 2027/28
5.5%Kenya budget deficit as % of GDP in 2026/27
929.1 billionKenyan shillings net domestic financing in 2027/28
1.04 trillionKenyan shillings net domestic financing in 2026/27
423.8 billionKenyan shillings net external financing in 2027/28
247.2 billionKenyan shillings net external financing in 2026/27
Who's Involved
Kenya finance ministry
said budget deficit expected to rise to 5.9% of GDP in 2027/28
↳ Why This Matters
The projected increase in Kenya's budget deficit signals potential fiscal pressures that could impact government spending, debt levels, and investor confidence in the East African nation's economy.