NAIROBI, Sept 17 (Askume) – Kenya’s finance ministry expects the budget deficit to exceed 20% of gross domestic product (GDP) in the 2025/26 financial year that starts in July next year, falling to 3.5% from 4.3% in the current fiscal year, a draft budget document showed.
In June President William Ruto cancelled a planned tax hike of more than 346 billion shillings ($2.7 billion) in the face of youth-led protests, whichThis was the biggest crisis of his two-year tenure.
The tax hike was aimed at boosting revenue for the current fiscal year, but the government opted to cut spending and increase borrowing after cancelling the tax hike .
A draft Treasury Budget Outlook document seen by Askume on Tuesday said the budget deficit is expected to fall to 3.3% of GDP in the 2026/27 financial year.
(1 USD = 128.5000 Kenyan Shilling)
