Treasury to Introduce Planning Bill 2026 to Streamline Government Projects and Public Spending

Treasury to Introduce Planning Bill 2026 to Streamline Government Projects and Public Spending

NAIROBI, Kenya — The National Treasury is preparing to introduce a landmark piece of legislation aimed at transforming how government projects are planned, financed, and implemented, in what officials describe as a major step toward improving efficiency and accountability in public spending.

Treasury Cabinet Secretary John Mbadi has announced that the government will soon table the Planning Bill, 2026 before the National Assembly, a proposed law designed to strengthen the connection between national development planning and budget allocation.

The announcement comes at a time when the government is under increasing pressure to maximize the impact of public expenditure, reduce wastage, and ensure that taxpayer-funded projects deliver measurable results amid growing fiscal challenges.

Speaking ahead of the presentation of the 2026/27 National Budget, Mbadi emphasized that Kenya’s current legal framework adequately governs public finance management, procurement, and asset management but lacks a comprehensive law dedicated to national planning.

“The problem we have in our budgeting process is that we are not making a plan to budget,” Mbadi stated.

The Cabinet Secretary noted that while the country has established mechanisms for managing public resources, there remains a significant gap in ensuring that expenditure decisions are directly tied to long-term development priorities.

“We have laws governing public finance management, procurement and asset management, but we do not have laws on national planning. That is why in my speech today you’ll hear a lot of emphasis on what we intend to do and introduce a Planning Bill,” he added.

Strengthening Development Planning

According to Treasury officials, the proposed legislation seeks to create a structured framework that will guide the identification, approval, financing, and implementation of government projects.

One of the key objectives of the bill will be to ensure that development projects are backed by realistic and sustainable financing plans before receiving approval.

For years, concerns have been raised over the approval of projects without adequate funding, leading to stalled infrastructure works, delayed service delivery, and increased project costs.

The proposed law is expected to address these challenges by requiring closer alignment between national development plans and annual budget allocations.

Government planners believe that such reforms will improve project prioritization and reduce instances where projects are launched without clear implementation strategies or sufficient financial resources.

Focus on Infrastructure and Public Investments

The Planning Bill is also expected to introduce stronger controls over government expenditure on land acquisition, infrastructure development, and other major public investments.

Officials say this will help improve transparency and ensure public funds are directed toward projects that align with national economic and social development goals.

The Treasury argues that better planning will also accelerate the implementation of government policies by reducing bureaucratic delays and improving coordination among ministries, departments, and agencies.

Analysts have long argued that weak planning processes contribute significantly to cost overruns and delays in public projects across the country.

The proposed reforms are therefore expected to strengthen oversight and improve the effectiveness of public investment decisions.

Comes Amid Growing Fiscal Pressure

The introduction of the Planning Bill coincides with the government’s broader efforts to implement austerity measures and improve public expenditure management.

Kenya continues to face mounting fiscal pressures driven by rising debt obligations, increasing demand for public services, and limited revenue growth.

As a result, policymakers are seeking ways to ensure that every shilling spent delivers maximum value to citizens.

Mbadi is expected to unveil the 2026/27 Budget outlining the government’s spending priorities, revenue collection measures, and borrowing plans for the financial year beginning July 1.

According to budget estimates, the National Government plans to spend approximately Ksh4.82 trillion in the upcoming financial year.

Of this amount, recurrent expenditure is projected to consume the largest share at Ksh3.54 trillion, covering salaries, debt servicing, and operational expenses across government institutions.

A New Direction for Public Finance

If approved by Parliament, the Planning Bill, 2026 could mark a significant shift in how Kenya designs and finances development projects.

Supporters of the proposal argue that stronger planning laws will improve accountability, eliminate duplication, reduce wastage, and ensure that government spending is aligned with national priorities.

As lawmakers prepare to debate the proposed legislation, attention will focus on whether the reforms can help deliver more efficient public investments and strengthen Kenya’s long-term development agenda.

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Treasury to Introduce Planning Bill 2026 to Streamline Government Projects and Public Spending