The Treasury has revised its projected domestic borrowing target for the 2026/27 fiscal year upwards by Sh88.5 billion, as it turns to the debt market to fill a deepening budget hole caused by revenue collection shortfalls.
The draft 2026 Budget Policy Statement (BPS), published on Friday, shows that the government expects to tap the local market for a record Sh1.006 trillion in net borrowing in the fiscal year to June 2027, marking an upward revision from the previous projection of Sh918.1 billion published in the September 2025 Budget Review and Outlook Paper (Brop).