Budget 2026/27: CS Mbadi Unveils Kenya’s Largest-Ever Ksh4.8 Trillion Budget Amid Revenue and Growth Push

Budget 2026/27: CS Mbadi Unveils Kenya’s Largest-Ever Ksh4.8 Trillion Budget Amid Revenue and Growth Push

NAIROBI, Kenya — The Kenyan government has unveiled its most ambitious spending plan in history after National Treasury Cabinet Secretary John Mbadi presented a record-breaking Ksh4.8 trillion Budget for the 2026/27 financial year, outlining the administration’s priorities on job creation, agriculture, infrastructure, manufacturing, and social development.

The budget, presented before Parliament on Thursday afternoon, comes at a critical time as the government seeks to stimulate economic growth, support businesses, and improve public services while managing growing fiscal pressures and debt obligations.

The spending plan represents the largest budget ever tabled in Kenya and signals President William Ruto’s determination to accelerate economic transformation through targeted investments in key sectors of the economy.

Speaking before Parliament, Mbadi emphasized that the budget seeks to balance economic growth with fiscal responsibility, while creating opportunities for millions of Kenyans.

Focus on Jobs, Agriculture and Economic Growth

According to Treasury estimates, the government plans to spend approximately Ksh4.82 trillion during the 2026/27 financial year, with recurrent expenditure accounting for the largest share of the allocation.

The budget is expected to support employment creation, strengthen local manufacturing, improve food security, and expand social protection programmes.

Treasury officials have maintained that the spending blueprint is designed to stimulate domestic production and empower small and medium-sized enterprises (SMEs), which remain the backbone of Kenya’s economy.

The government projects domestic revenue collections of approximately Ksh3 trillion, leaving a fiscal deficit of slightly over Ksh1.1 trillion, which will largely be financed through domestic borrowing and other approved financing mechanisms.

Economic analysts say the success of the budget will largely depend on the government’s ability to meet its ambitious revenue targets while maintaining expenditure discipline.

Government Moves to Clear Pending Bills

A key highlight of Mbadi’s budget address was the government’s commitment to clear outstanding verified pending bills owed to businesses and contractors.

The Treasury Cabinet Secretary announced plans to settle Ksh155.3 billion in pending bills over the next two financial years through a combination of direct budget allocations and securitisation.

According to Mbadi, a Pending Bills Verification Committee established in 2023 reviewed more than 81,000 claims valued at over Ksh637 billion.

“Following the verification exercise, the government has already settled Ksh80 billion through securitisation, leaving an outstanding balance of Ksh155.3 billion,” Mbadi said.

The Treasury intends to begin allocating funds in the 2026/27 financial year with the goal of fully clearing the verified obligations within two years.

Business leaders have consistently argued that delayed government payments negatively affect cash flow, employment, and economic activity, making the settlement programme a significant boost for affected firms.

Inflation Expected to Remain Stable

Mbadi also offered a positive outlook on inflation, expressing confidence that prices would remain within the government’s target range in the coming months.

The Treasury attributed the expected stability to easing geopolitical tensions, prudent monetary policy measures, favourable weather conditions, and a relatively stable exchange rate.

“Inflation is expected to remain within the target range in the near term, supported by easing geopolitical tensions, appropriate monetary policy actions and government interventions,” Mbadi stated.

Stable food prices are also expected to support household purchasing power and ease pressure on consumers.

Parliament Observes Silence for Raila Odinga

Before officially delivering his budget statement, Mbadi requested Members of Parliament to observe a minute of silence in honour of veteran opposition leader and former Prime Minister Raila Odinga.

The solemn moment saw lawmakers pause proceedings as a sign of respect, with some members chanting Raila’s popular nickname, “Jowi,” after the tribute.

The gesture added an emotional moment to an otherwise highly anticipated fiscal event.

Wetang’ula Explains Ruto’s Absence

Meanwhile, National Assembly Speaker Moses Wetang’ula addressed questions regarding President William Ruto‘s absence during the budget presentation.

“For the avoidance of doubt, the President of the country is under no obligation to attend Parliament on the day when the Cabinet Secretary for Treasury comes not to read a budget but to make a statement and give to the country his revenue measures,” Wetang’ula explained.

As the country digests the details of the historic budget, attention will now shift to Parliament’s scrutiny of the spending proposals and whether the ambitious fiscal plan can deliver economic growth, employment opportunities, and improved livelihoods for millions of Kenyans.

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Budget 2026/27: CS Mbadi Unveils Kenya’s Largest-Ever Ksh4.8 Trillion Budget Amid Revenue and Growth Push