NAIROBI, Kenya, June 20 – Kenya’s fiscal deficit for the financial year 2024/25 stood at Sh797.7 billion by the end of April 2025, equivalent to 4.6 percent of the country’s GDP, according to a supplementary budget statement tabled by the National Treasury before the National Assembly.
According to Treasury, the shortfall was financed through net foreign borrowing of Sh441.8 billion and net domestic financing of Sh355.9 billion.
Treasury data reveal that the gap between revenue collection and government expenditure has widened the fiscal space strain.
“Total revenue collection for the period ending April 2025 was Sh2,255.1 billion against a target of Sh2,508.1 billion, recording a shortfall of KSh 253.0 billion,” read the report in part.
“The below-target performance was on account of a shortfall in ordinary revenue by Sh195.3 billion and in Appropriations-in-Aid (AIA) by Sh57.7 billion.”
On the spending front, the government reported total expenditure and net lending at Sh3,024.6 billion, falling short of the Sh3,187.8 billion target by Sh163.1 billion.
The underperformance was attributed mainly to slower disbursements in development spending (Sh99.6 billion below target) and transfers to counties (Sh79.6 billion below target).
However, recurrent spending exceeded projections, reaching Sh2,337.1 billion, Sh16.1 billion over budget, mainly due to higher interest payments and increased outlays for operations and maintenance.
