Nairobi — The Kenyan government plans to borrow Sh263 billion from the domestic market to help finance the Sh3.92 trillion budget for the fiscal year running from June 2024 to July 2025.

This announcement was made by Treasury Cabinet Secretary Njuguna Ndung'u during the reading of the 2024-2025 budget estimates in parliament.

In addition to domestic borrowing, the government is projecting to secure Sh333.8 billion in foreign debt.

According to Ndung'u, the combined borrowing effort aims to bridge the Sh597 billion budget deficit.

"The fiscal deficit for the financial year 2024-2025 will be financed by net external borrowing of Sh333.8 billion, equivalent to 1.8 percent of GDP, and net domestic borrowing of Sh263.2 billion," said Ndung'u.

The Treasury projects a total revenue collection of Sh343.2 billion, which is approximately 18.5 percent of the total gross domestic product (GDP).

The total government expenditure for the 2024-2025 financial year is estimated at Sh3.92 trillion.

The budget outlines key areas of spending and aims to address critical sectors such as healthcare, infrastructure, and education.

This ambitious fiscal plan reflects the government's commitment to stimulate economic growth and development amidst a challenging economic environment.

The reliance on both domestic and foreign borrowing, according to the Treasury boss, underscores the government's strategy to manage the fiscal deficit while striving to achieve its economic goals.

The budget estimates presented by the Treasury are set to undergo parliamentary scrutiny and approval in the coming days.