Kenya’s finance ministry predicts the country’s budget deficit would decrease in 2025–2026

Kenya’s finance ministry stated on Friday that it anticipates a little smaller budget deficit and a tiny rise in total spending in its 2025–2026 (July–June) fiscal year as compared to the June-ending year.

According to the ministry’s February Budget Policy Statement, the deficit is expected to rise from 4.9% of GDP in 2024–2025 to 4.3% of GDP in 2025–2026.

Overall spending is expected to rise from 3.95 trillion shillings in the year ending in June to 4.34 trillion shillings ($34 billion) in 2025–2026, according to the ministry.

According to the ministry, 146.8 billion shillings in net external financing and 684.2 billion shillings in net domestic financing are the government’s intentions to cover the deficit.

In June, when youth-led protests produced the largest crisis of his government, President William Ruto was compelled to abandon tax increases totaling over 346 billion shillings ($2.7 billion).