Kenya's Ambitious Fiscal Plans for 2025/26 Unveiled

Kenya's cabinet has approved a proposed budget of 4.2 trillion shillings for the 2025/26 fiscal year. The budgetary plans include additional spending for 2024/25 and are now up for parliamentary approval. Previously, President Ruto faced challenges due to tax hikes, impacting his administration's plans.

Kenya's government has greenlit a mammoth 4.2 trillion shilling budget for the fiscal period of 2025/26, aiming to boost economic growth. This was announced by President William Ruto's office on Tuesday.

The approval followed a detailed Budget Policy Statement received from the finance ministry, which outlines an additional 199.9 billion shillings for next year's expenditure. These proposals are set to be reviewed by parliament shortly.

Previously, President Ruto was compelled to withdraw tax hikes amid protests that tested his presidency. The finance ministry forecasts a 5.3% economic growth for 2025 and 2026, following a 4.6% growth estimate for last year.

(With inputs from agencies.)