The government has announced plans to significantly reduce its borrowing, setting a course towards achieving a balanced budget by 2027.
This initiative was unveiled today at State House during a Cabinet meeting chaired by His Excellency The President, marking a pivotal moment in the nation’s economic trajectory.
Under the proposed Fiscal Year 2024/25 Budget, which will be presented to parliament later today by the Cabinet Secretary for The National Treasury & Economic Planning, the government seeks to slash its borrowing by nearly half compared to previous fiscal years.
Beginning with a reduction from KES 1 trillion in the 2021/22 fiscal year to KES 597 billion in the upcoming 2024/25 period, this fiscal discipline is a cornerstone of the administration’s broader economic agenda.
“The reduction in borrowing is a critical step towards achieving our goal of a balanced budget by 2027,” stated the Cabinet Secretary. “This strategy underscores our commitment to fiscal prudence and sustainable economic growth.”
The budget policy aligns closely with the Administration’s Blueprint — the Bottom-Up Economic Transformation Agenda (BETA) — emphasizing initiatives aimed at bolstering economic and social rights. Key priorities include advancing universal health coverage, enhancing educational opportunities, ensuring food security, and improving access to clean water and sanitation.
Moreover, the budget allocates substantial resources towards infrastructure projects and export-led growth initiatives, underscoring the government’s commitment to driving economic expansion and job creation.
Notably, the allocation to County Governments has been bolstered to KES 400.1 billion, marking a record high aimed at promoting equitable and inclusive development across the country.
In parallel, as Kenya prepares for the upcoming Summer Olympic Games in Paris, the Cabinet has approved the establishment of the Kenya House Experience 2024 in Paris. This initiative aims to showcase Kenya’s tourism potential, attract investments, and honor the achievements of Kenyan athletes on the global stage.
