Kenya’s budget deficit projected at Sh1.15 trillion as recurrent spending remains elevated
Kenya’s fiscal deficit is projected at about Sh1.145 trillion in the 2026/27 financial year as the government struggles to reduce expenditure while maintaining large recurrent obligations.
The deficit follows an estimated Sh1.265 trillion shortfall in 2025/26.
Large spending commitments for teachers, police, healthcare workers and other public-sector employees are making it harder for the government to achieve its fiscal consolidation targets.
Kenya has been attempting to reduce its deficit as a percentage…
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