Kenya’s 2026/27 fiscal deficit overshoots target by Sh178 billion in two months

Kenya’s budget deficit reached Sh252 billion in the first two months of the 2026/27 financial year, driven by lower-than-expected revenue collections and spending that exceeded government projections.The deficit is Sh178.5 billion above the Sh73.5 billion target for July and August, highlighting the growing challenge facing the government’s efforts to rein in public borrowing.