Budget deficit up to 5.8pc, Treasury avoids carryovers

Cabinet Secretary for the National Treasury and Economic Planning John Mbadi appears before the senate committee  at County Hall, Nairobi on August 20, 2025.

Photo credit: Dennis Onsongo | Nation Media Group

Kenya’s fiscal deficit- a measure of government's income compared with its spending - widened to 5.8 percent in the year to June, but Treasury avoided moving balances into the new cycle.

The deficit, wider than the 5.6 percent gap reported in the previous 2023/24 financial year, represents a move away from the desired fiscal consolidation path, which aims to improve revenues and cut reliance on borrowing to fund the budget.

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