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Debt burden and optimism cloud Kenya's budget outlook

IPF Chief Executive Daniel Ndirangu speaking during launch of the 2026 annual national shadow budget. [Wilberforce Okwiri,Standard]

Financial think tanks have faulted the government’s ambitious budget for the coming financial year, terming the projection as unrealistic and overly optimistic.

They say the government is at risk of missing its tax revenue targets if it fails to rethink and review its budget plans, according to Institute of Public Finance's (IPF) 2026 Shadow budget. The State targets to collect Sh2.76 trillion tax revenue for the 2026/27 financial year, a target IPF has termed overly optimistic.

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