Budget Deficit Target:

• 4.9% of GDP, broadly in line with the 4.8% projected for 2025/26

Fiscal Context:

• Kenya has faced high debt repayments in recent years due to infrastructure borrowing since 2013.
• The government aims to maintain fiscal sustainability, balancing revenue mobilization with debt obligations.

Financing the Deficit:

• Net external financing: 241.8 billion KES (~$1.86 billion)
• Net domestic financing: 775.8 billion KES

Key Takeaway:

• Kenya is pursuing gradual fiscal consolidation, focusing on revenue generation and controlled borrowing to meet both expenditure and debt service requirements.