In a move aimed at tightening fiscal discipline and realigning national priorities, the Cabinet has approved major budgetary adjustments in line with the Kenya Kwanza's commitment to fiscal consolidation.
During a Cabinet meeting held Tuesday at State House, Nairobi, and chaired by President William Ruto, ministries and State departments were directed to collaborate closely with the National Treasury to implement various expenditure reviews. "These adjustments are part of broader austerity measures designed to strengthen fiscal discipline, reduce public debt vulnerabilities, and create the fiscal space necessary to deliver essential public goods and services," the dispatch read in part.
According to the directive, Kenya's fiscal deficit is supposed to reduce to 4.5% of GDP in the 2025/26 financial year, down from 5.3% in 2023/24 and 5.1% in 2024/25.
The medium-term target is set at 2.7%.
