Kenya’s Budget Deficit Narrows to 4.8% of GDP in FY2023/24

Kenya’s fiscal deficit narrowed to 4.8% of GDP in the 2023/24 financial year, down from 6.2% the previous year, due to higher revenue and restrained expenditure. The National Treasury reported Ksh2.1 trillion in collections and contained wage bill growth through hiring freezes. Debt servicing remains high at 63% of revenue, but concessional borrowing has reduced interest costs. The IMF commended the progress under the $1.4 billion EFF program. The 2024/25 budget targets a 4.5% deficit, balancing development spending with debt sustainability.