Balancing Kenya’s budget: Lessons from Singapore

National Treasury Cabinet Secretary John Mbadi displays the Budget briefcase ahead of unveiling the government spending plan for the financial year 2025/2026 in Parliament on June 12, 2025. 

Photo credit: Dennis Onsongo | Nation Media Group

Kenya enters the 2025/26 fiscal year with a projected budget deficit of 4.8 percent of GDP, reflecting the enduring imbalance between government spending and revenue generation.

Despite recent austerity measures, debt servicing now consumes more than six percent of GDP, equivalent to nearly 67 percent of ordinary revenues, thus, leaving little room for capital investments and essential services.

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