NAIROBI, Kenya, Oct 23 – The government’s recurrent spending is projected to exceed Sh4 trillion for the first time in the 2027/28 financial year, as the proposed national budget rises to Sh5.416 trillion.
The Draft Budget Policy Statement 2027 puts recurrent expenditure at Sh4.021 trillion, up from Sh3.887 trillion projected two months ago.
Development spending, however, is expected to fall to Sh915.8 billion from Sh958 billion in the earlier estimates.
The National Treasury expects to collect Sh4.004 trillion in revenue during the financial year, up from the previous projection of Sh3.943 trillion. Ordinary revenue is projected to rise to Sh3.249 trillion from Sh3.208 trillion.
Despite the expected increase in revenue, the budget deficit is projected to widen to Sh1.353 trillion, equivalent to 5.9 percent of gross domestic product (GDP), from Sh1.321 trillion, or 5.7 percent of GDP.
The government plans to borrow Sh929.1 billion from the domestic market, down from the earlier estimate of Sh1.085 trillion. External borrowing is expected to rise to Sh423.8 billion from Sh235.9 billion.
The Treasury has invited the public to submit comments on the draft policy statement by November 16.
