2025/26 KPMG East Africa Budgets Analysis

On 12 June 2025, the Finance Ministers of Kenya, Tanzania, Uganda, and Rwanda, member states of the East African Community (EAC), presented their 2025/26 national budgets to their respective Parliaments.

This year’s budgets reinforce commitments to fiscal sustainability, economic resilience, and regional integration, addressing global economic shifts, climate challenges, and digital transformation opportunities. The focus remains on fostering adaptive, inclusive economies that support long-term growth.

Kenya

• GDP grew by 4.7% in 2024, with inflation easing to 3.8% mid-2025.
• The budget targets KES 4.29 trillion (USD 33 billion) expenditure, aiming to reduce the fiscal deficit to 4.3% of GDP.
• Investment priorities in infrastructure, agriculture, climate resilience, health, education, and social protection, with KES 474.9 billion (USD 3.68 billion) allocated to counties.
• Fiscal consolidation seeks to lower debt-to-GDP ratio from 63% in 2024 to - 55% by 2028.
   

Uganda

• Uganda's economy is projected to grow by at least 7% in the 2025/26 fiscal year, with the potential to reach double-digit growth due to the expected start of crude oil production.
• The proposed budget for the 2025/26 fiscal year is UGX 57.4 trillion (USD 15.7 billion), a decrease of over 20% from the previous year's UGX 72.1 trillion (USD 19.65 billion).
• The government's focus areas for economic growth include enhancement of value addition in agriculture, promotion of Uganda as a tourist destination, expansion of the mining sector, including oil and fostering technological advancements and innovation.
• Priority infrastructure investment include a fuel pipeline to support export of crude oil.
   

Tanzania

• Tanzania's GDP is projected to grow by 6.1% in 2025 and 6.4% in 2026, driven by investments in key sectors such as manufacturing, agriculture, and tourism.
• The government plans to spend TZS 57.04 trillion (USD 21.24 billion) in the 2025/26 fiscal year, with approximately 70% of this expected to be financed through domestic revenue.
• Priorities include debt servicing, government wages, and infrastructure for 2027 Africa Cup of Nations to be hosted in East Africa.
• The 2025/26 budget aligns closely with the final phase of Tanzania’s Development Vision 2025, emphasizing sustainable economic growth, poverty reduction, and industrialization. This is supported by the fact that TZS 19.47 trillion (USD 7.25 billion), which represents 34.1% of the total budget has been allocated for development expenditure.
   

Rwanda

• Rwanda’s GDP grew by 8.9% in 2024, which exceeded the initial projected economic growth of 8.3%. At the same time, headline inflation as of May 2025 stood at 6.9%, which was within the National Bank of Rwanda inflation band of 2% to 8%.
• Rwanda’s proposed budget for the 2025/26 fiscal year is RWF 7.03 trillion (USD 4.98 billion) , marking a 21% increase from the RWF 5.82 trillion (USD 4.13 billion)  allocated in the 2024/25 fiscal year.
• From the budget speech, there is a clear focus on agriculture, water and sanitation, energy, the financial sector, and universal health care.
   

Please see the links below for our detailed highlights from the EAC Member States’ 2025/26 budget announcements.