Kenya’s finance ministry expects a fiscal deficit of KES 703.9 bln for the fiscal year starting July 1, representing 3.9% of the GDP. The deficit will be financed through net external financing of KES 326.1 bln and local sourcing of 377.7 bln. The country aims to reduce the budget deficit to 3.1% of GDP by FY27-28. Meanwhile, economic growth is projected at 5.5% for 2023 and 2024.