*State to borrow Sh635bn from domestic market* The National Treasury targets to borrow an additional Sh30 billion, 4.9 percent increase, from the Kenyan market compared to this financial year when it borrowed Sh605.7 billion. External borrowing will be Sh287.7 billion up from Sh281.5 billion borrowed this year or a 2.2 percent increase, signaling increased reliance on Treasury bills and bonds to cover the budget shortfall. “The fiscal deficit for the full year 2025/26 budget will be financed by net external borrowing of Sh287.7 billion, equivalent to 1.5 percent of gross domestic product (GDP) and net domestic borrowing of Sh635.5 billio,” said Treasury Cabinet Secretary John Mbadi. The fiscal deficit of 4.8 percent of the GDP is an improvement compared to last year’s estimate of Sh997.5 billion or 5.7 percent of the GDP. *_Source:Business Daily_*