Efforts by the Central Bank of Kenya (CBK) and the National Treasury to bring down interest rates in the economy, are set to be tested by a 32 percent increase in government’s net domestic borrowing in the upcoming fiscal year, amid sub-par revenue collection and heavy debt repayment obligations.
The Draft 2025 Budget Policy Statement (BPS) which was published last week, has retained the earlier disclosed domestic borrowing target of Sh545.8 billion for the 2025/26 fiscal year, which is an increase of Sh132.7 billion from the current year’s target of Sh413.1 billion.
