By
Jamlic Munyasya
Economist, Business consultant
Kenya’s fiscal year 2026-27 Budget presents both an opportunity and a warning. With total expenditure projected at Sh4.8 trillion against expected revenues of approximately Sh3.7 trillion from ordinary taxes, appropriations-in-aid, and grants, the government faces a fiscal deficit of about Sh1.15 trillion.
This gap will largely be financed through domestic and external borrowing, adding to an already substantial public debt stock estimated at Sh13 trillion.
