Kenya's Cabinet Endorses Fiscal Strategy with Trillion Shilling Budget

Kenya's cabinet has approved planned spending of 4.2 trillion shillings for the 2025/26 fiscal year, as detailed in the Budget Policy Statement. The proposed budget will be submitted to parliament. Ruto's presidency faced challenges with youth-led protests against tax hikes. The growth forecast is set at 5.3%.

The Kenyan cabinet has given the green light to a 4.2 trillion shilling spending plan for the 2025/26 fiscal year. This substantial budget is part of the finance ministry's Budget Policy Statement and awaits parliamentary approval.

Earlier, President William Ruto was compelled to abandon tax hikes amounting to over 346 billion shillings amid widespread protests spearheaded by the youth, which posed significant challenges to his administration.

In an updated forecast, the finance ministry adjusted its spending projection to 3.87 trillion Kenyan shillings in July. The cabinet remains optimistic with an economic growth rate forecast of 5.3% for 2025 and 2026, a rise from last year's estimate of 4.6%.

(With inputs from agencies.)