Net domestic borrowing in Kenya [Sh bn]

The National Treasury has significantly adjusted its fiscal strategy, signalling a heavy reliance on local credit markets to fund government operations.

According to recent data, Kenya’s net domestic borrowing has undergone a sharp upward trajectory.

For the 2023/24 fiscal year, borrowing was recorded at Sh595.6 billion, a figure that climbed to Sh854.5 billion in the 2024/25 period.

The most striking development lies in the disparity between initial projections and the current financial reality.

This shift reflects an urgent recalibration of the national budget as the government seeks to bridge widening funding gaps amid evolving economic pressures and shifting priorities within the local financial sector.