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Treasury borrows a record Sh815bn from domestic market
Successive revisions of the government’s domestic borrowing target since June 2024 have raised the risk of crowding out the private sector from the credit market.
The National Treasury is set to close the financial year next week with record domestic borrowing of Sh815.6 billion after an upward adjustment of the fiscal deficit via the third supplementary budget amid a revenue collection shortfall.
Successive revisions of the government’s domestic borrowing target since June 2024 have raised the risk of crowding out the private sector from the credit market, threatening the growth of the economy as banks opt for risk free government securities instead of lending to businesses and households.
