Kenya will target a budget deficit of 3.8% of GDP in the 2025/26 (July-June) financial year, a senior official at the ministry of finance said on Wednesday.
The East African nation has been struggling to fund its budgets in recent years due to rising annual debt service costs and flagging growth in government revenues.
The government will set a borrowing ceiling of 759 billion shillings ($5.88 billion) in the next financial year, Musa Kathanje, the director of the macro and fiscal affairs department at the ministry, told a budget preparation event.
The fiscal target for the next year will be lower than the 4.3% of GDP in this financial year. The government was forced to raise the budget deficit for this year after deadly protests that forced President William Ruto to abandon proposed tax hikes.
($1 = 129.0000 Kenyan shillings)