Nairobi, June 10 -- Kenya is heading into a new financial year from next month with a budget deficit of Sh1.1 trillion, exposing the persistent gap between what the government collects in revenue and what it spends.

Treasury projections show the government plans to spend about Sh4.82 trillion against expected revenues of about Sh3.67 trillion, leaving a financing hole of more than Sh1.1 trillion.

Kenya's annual budget deficit has crossed the Sh1 trillion mark for the third straight year, forcing the government into deeper reliance on domestic borrowing to finance a persistent gap between revenue collections and spending needs.

The deficit stood at Sh1.02 trillion in the financial year ended June 2025, before rising to about Sh1.3 trill...