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State's appetite for domestic debt to grow with fuel VAT cut

National Treasury CS John Mbadi when he appeared before the National Assembly Finance and Planning Committee at Parliament Buildings on March 2, 2026. [Boniface Okendo, Standard]

The government is expected to borrow heavily from the local market to cover the revenue gap created by fuel value added tax (VAT) cuts, a move that is expected to squeeze out households and businesses in the credit market. 

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