Treasury Proposes Ksh 4.82 Trillion Budget for 2026/27 Financial Year

The National Treasury has proposed a budget of Ksh 4.82 trillion for the 2026/27 financial year, starting in July 2026. This is the biggest budget Kenya has ever had.

The budget was presented to Parliament before the April 30 deadline. To support this spending plan, the government is expected to borrow more than Ksh 1.1 trillion, with most of the money coming from local sources.

According to the Treasury, the economy is expected to grow slightly slower, dropping from 5.3 percent to about 5.0 percent. This slowdown is linked to global tensions, including the ongoing conflict involving the US, Israel, and Iran, which is affecting international trade.

The total budget will be divided into three main parts. The national government will receive Ksh 2.89 trillion, which also covers Parliament and the Judiciary. Another Ksh 1.5 trillion will go to Consolidated Fund Services, while county governments will get Ksh 420 billion. This is an increase of Ksh 5 billion compared to the current financial year.

Out of the total spending, Ksh 3.54 trillion will be used for recurrent expenses such as salaries, daily operations, and debt payments. Development projects will take Ksh 749 billion.

To finance the budget, the government expects to raise Ksh 3.63 trillion from revenue sources like taxes and service fees. Ordinary revenue alone is projected at Ksh 2.99 trillion, higher than the current target of Ksh 2.78 trillion.

Since there will still be a shortfall of Ksh 1.1 trillion, the Treasury plans to borrow Ksh 116.2 billion from foreign lenders and Ksh 995.7 billion locally. This will be the highest domestic borrowing Kenya has ever seen.

From the Ksh 2.89 trillion allocated to the national government, the Executive will take the largest share of about 97 percent, which is Ksh 2.8 trillion. Of this amount, Ksh 1.98 trillion will go to recurrent spending, while Ksh 840.6 billion will support development projects through various ministries.

Parliament is expected to receive Ksh 48.69 billion, while the Judiciary will get Ksh 30.44 billion.