Kenya: public finances

What is Kenya's budget deficit?

Kenya's fiscal deficit, including grants, is projected at KSh1,111.8 billion, or 5.3% of GDP, in the 2026/27 financial year, according to the National Treasury's Budget Summary. In 2025/26 the deficit came to KSh1,264.7 billion, or 6.8% of GDP, against a target of 7.3%, the Treasury's draft 2026 Budget Review and Outlook Paper says. The Treasury plans to cut the deficit to 3.6% of GDP in 2027/28 and 3.3% in 2028/29.

The deficit is the gap between government spending and revenue, and it is filled by borrowing. In 2026/27 the Treasury plans to borrow KSh995.7 billion at home and KSh116.2 billion abroad (net). Kenya's financial year runs from 1 July to 30 June.

Official sources: National Treasury: Budget Summary FY 2026/27 · National Treasury: draft 2026 Budget Review and Outlook Paper

How much tax does Kenya collect?

Kenya's ordinary revenue, mainly taxes, was KSh2,588.4 billion in the 2025/26 financial year, against a target of KSh2,640.6 billion, according to the National Treasury's draft 2026 Budget Review and Outlook Paper. Ordinary revenue grew 7.0%, with all major tax heads growing. Total revenue including ministry fees (Appropriations-in-Aid) was KSh3,198.8 billion, or 17.2% of GDP. For 2026/27 the Budget Summary projects tax revenue of KSh2,858.7 billion, of which income tax is KSh1,383.6 billion and VAT KSh829.2 billion.

Taxes are collected by the Kenya Revenue Authority. Figures for 2025/26 are provisional. Revenue as a share of GDP shows how much of the economy the government collects; the Treasury's goal for 2025/26 was at least 17.5% of GDP.

Official sources: National Treasury: draft 2026 Budget Review and Outlook Paper · National Treasury: Budget Summary FY 2026/27

How much does the Kenyan government spend?

Kenya's total government spending and net lending is budgeted at KSh4,785.2 billion, or 23.0% of GDP, in the 2026/27 financial year, according to the National Treasury's Budget Summary. This comprises KSh3,538.7 billion of recurrent spending, KSh749.0 billion of development spending, KSh495.5 billion of transfers to county governments and KSh2.0 billion for the Contingency Fund. Education gets the largest share of the thematic allocations, KSh668.3 billion, followed by national security at KSh566.9 billion.

Recurrent spending covers wages, operations and interest; development spending covers projects such as roads and buildings. In 2025/26, actual spending was KSh4,484.2 billion against a target of KSh4,656.5 billion, according to the Treasury's draft Budget Review and Outlook Paper.

Official sources: National Treasury: Budget Summary FY 2026/27 · National Treasury: draft 2026 Budget Review and Outlook Paper

How much does Kenya pay in interest on its debt?

Kenya's 2026/27 budget sets aside KSh986.7 billion for interest on domestic debt and KSh267.5 billion for interest on foreign debt, a total of KSh1,254.2 billion, according to the National Treasury's Budget Summary. These sit in the Consolidated Fund Services, allocated KSh1,501.3 billion in all, which also covers pensions and state officers' salaries. Interest and pensions together equal 7.0% of GDP.

Interest is paid before other spending, so it limits what is left for services. Interest is equal to about 42% of ordinary revenue, which is projected at KSh2,985.7 billion in 2026/27. The Treasury says the present value of public debt was 65.3% of GDP in June 2025, above the 55% limit approved by Parliament.

Official sources: National Treasury: Budget Summary FY 2026/27

How much money do county governments get?

Kenya's 47 county governments are allocated KSh420.0 billion as their equitable share of nationally raised revenue in 2026/27, according to the National Treasury's Budget Summary, under the Division of Revenue Bill, 2026. Counties also receive additional conditional allocations of KSh75.5 billion, including loans and grants, bringing total transfers to KSh495.5 billion.

The equitable share is the counties' unconditional share of national revenue, which each county spends on its own budget priorities, such as health and local roads. The Office of the Controller of Budget publishes reports on how counties spend these funds.

Official sources: National Treasury: Budget Summary FY 2026/27 · Office of the Controller of Budget

What is Kenya's debt to GDP ratio?

According to the IMF, general government gross debt in Kenya was 71.3% of GDP in 2025. Since 2005 it has ranged from 34.2% of GDP (2007) to 73.4% of GDP (2023). Sub-Saharan Africa median: 53.0% of GDP; Kenya is 13th highest of 46. World rank, highest first: 53rd of 185.

Does Kenya's government borrow more than it raises?

According to the IMF, general government net lending or borrowing in Kenya was -6.5% of GDP in 2025, which is a deficit. Since 2005 it has ranged from -8.1% of GDP (2020) to -0.2% of GDP (2005). It is 42nd highest of 47 in Sub-Saharan Africa, where the median is -3.0% of GDP. World rank, highest first: 165th of 188.

How much revenue does Kenya's government raise?

The latest figure from the IMF, for 2025, is 17.5% of GDP. Since 2005 it has ranged from 16.1% of GDP (2005) to 18.0% of GDP (2013). It is 25th highest of 47 in Sub-Saharan Africa, where the median is 18.4% of GDP. Worldwide: 146th of 187.

How much does Kenya's government spend?

The latest figure from the IMF, for 2025, is 24.0% of GDP. Since 2005 it has ranged from 16.2% of GDP (2005) to 25.3% of GDP (2016). It is 17th highest of 46 in Sub-Saharan Africa, where the median is 20.8% of GDP. Of 186 countries with 2025 data, 123rd highest.

What is tax revenue in Kenya?

The IMF puts central government tax revenue in Kenya at 14.1% of GDP in 2023. Since 2014 it has ranged from 13.6% of GDP (2021) to 15.2% of GDP (2014). Sub-Saharan Africa median: 14.0% of GDP; Kenya is 11th highest of 22. World rank, highest first: 76th of 110.

What is Kenya's military budget as a share of GDP?

According to SIPRI, military spending in Kenya was 1.1% of GDP in 2025. Since 2005 it has ranged from 1.0% of GDP (2023) to 1.7% of GDP (2005). Sub-Saharan Africa median: 1.3% of GDP; Kenya is 28th highest of 44. Of 149 countries with 2025 data, 103rd highest.