NAIROBI, July 22 – Kenya expects its fiscal deficit to narrow to 3.6% of gross domestic product (GDP) in the 2027/28 fiscal year, signalling continued efforts to strengthen public finances while supporting economic growth.
The projection was announced by Finance Ministry Principal Secretary Chris Kiptoo during the launch of public consultations for the 2027/28 national budget, marking the beginning of the government’s budget preparation process.
The new forecast represents a significant improvement from the 5.5% of GDP budget deficit projected for the 2026/27 fiscal year, which was announced by Finance Minister John Mbadi in June.
Kenya also expects the economy to maintain steady growth over the medium term. According to Kiptoo, GDP is projected to expand by 5.1% in 2027 and 5.2% in 2028, compared with an estimated 5.0% growth in 2026.
The revised outlook is broadly in line with the government’s earlier economic projections, although the Ministry of Finance had previously forecast 5.2% growth for 2027.
The budget planning process comes ahead of Kenya’s August 2027 general elections, prompting the government to bring forward the presentation of the national budget.
Typically, Kenya’s fiscal budget is presented to Parliament in June, but officials said next year’s budget will be tabled earlier to accommodate the election timetable.
The government’s fiscal projections reflect its broader strategy of reducing budget deficits while sustaining economic growth through continued fiscal reforms and prudent public finance management.
