The government plans to spend Ksh 4.7 trillion in the financial year 2026/27, according to new estimates approved by the Cabinet on Tuesday.
According to the Cabinet Dispatch, the recurrent expenditure will absorb the lion’s share at Ksh 3.46 trillion, with development vote standing at Ksh 749.5 billion for roads, houses, bridges and other government projects.. Countries will receive a total of Ksh 496 billion to run their affairs according to the cabinet brief.
At Ksh 4.7 trillion, the 2026/27 budget is 0.4pc more than the current budget of Ksh 4.29 trillion presented by National Treasury Cabinet Secretary John Mbadi in June last year.
The government projects total revenues of Ksh 3.53 trillion against planned expenditure of Ksh 4.7 trillion, leaving more than Ksh 1.2 trillion to be financed through borrowing and funding by development partners.
County governments will receive 495.7 billion shillings, including equitable share and additional allocations, while Ksh 2 billion have been set aside for the Contingency Fund.
The Cabinet has approved the Budget Policy Statement for 202,6 which outlines priority spending areas including education, health, infrastructure, agriculture, energy, alongside reforms in public finance management, digitisation and reforming state-owned enterprises.
The government projects economic growth of 5pc in 2025 and 5.3pc in 2026, citing improved agricultural output and ongoing policy reforms, although risks remain from climate shocks, debt servicing costs and global economic uncertainty.
The budget proposals will now be tabled in Parliament, where lawmakers are expected to interrogate spending priorities and borrowing plans.
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