Government reviews budget upwards with Ksh323 billion, increases borrowing projections
The government has increased the budget for next year's budget, 2025/2026, by Ksh171.3 billion
The government has increased the budget for next year’s budget, 2025/2026, by Ksh171.3 billion.
According to the final Budget Review and Outlook Paper (BROP) 2024, next year’s budget is set to be Ksh4.329 trillion after the increase. Next year’s budget is set to rise from this year’s budget of Ksh4.006 trillion.
This represents an increase of Ksh326 billion.
In addition to the rise in budget, development spending for 2025/2026 has also increased by Ksh141.5 billion to Ksh804.7 billion. This marks a rise from Ksh663.2 billion in the 2024/2025 fiscal year.
Recurrent spending for 2025/2026 has also increased by Ksh20.2 billion to Ksh3.077 trillion. This is from the previous year’s figure of Ksh3.057 trillion.
County governments are also set for a windfall in allocation. County governments are set to receive Ksh442.7 billion, a marginal increase from Ksh412.9 billion in this financial year. This is after the Council of Governors has been lamenting over the inadequate funds allocated to their counties.
In terms of revenue, the total revenue plus appropriations-in-aid is set to be Ksh3.517 trillion. This is a rise from Ksh3.354 trillion this year.
Ordinary revenue for next year has been set for Ksh3.01 trillion a rise from Ksh2.91 trillion in this financial year.
Tax revenue for next year is set to be Ksh2.73 trillion, a rise from Ksh2.1 trillion in the previous financial year.
Additional tax revenue for the next financial year is set to be Ksh343.0 billion which is set to be heavily influenced by the new proposed tax Bills by Treasury CS John Mbadi.
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In regards to fiscal deficit, the next year’s budget, the deficit is set to widen to Ksh759.4 billion. This is a sharp rise from Ksh597 billion in the previous financial year.
Kenya is also set to borrow more in the next financial year. The country is set to borrow Ksh973.1 billion in domestic and external borrowing combined in the next financial year. This represents an increase of Ksh204.5 billion from the previous year.
Kenya’s domestic borrowing is set to increase by Ksh346.3 billion and is set to be Ksh759.4 billion. This is in contrast to Ksh413.1 billion borrowed in the 2024/2025 financial year.
Kenya’s external borrowing is set to decrease to Ksh213.7 billion in the 2025/2026 financial year. This marks a decrease of Ksh139.8 billion from the 2024/2025 financial year.
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