Kenya Forecasts 16-Year Low Budget Deficit on Revenue Boost and Spending Cuts

• Kenya’s fiscal deficit is projected to shrink to 3.5% of GDP in FY 2025/26, the lowest since 2008
• National Treasury uses aggressive revenue collection, spending cuts, and fiscal consolidation efforts

Nairobi, Kenya – Kenya is targeting its narrowest budget deficit in 16 years, driven by aggressive revenue collection and significant spending cuts, as it seeks to stabilise its finances after recent protests derailed its taxation plans for the current financial year.