The Financial Budget statement for the Year 2026/27 presented to Parliament on Thursday is expected to transform the country’s economy from its current status to a more developed nation status.
Presenting the Budget Policy highlights and revenue raising measures for the FY 2026/27, the National Treasury Cabinet Secretary John Mbadi said the policy will prioritize enhanced domestic revenue mobilization, strengthened expenditure control and strategic re-prioritization of public spending
“These measures are intended to reinforce public debt sustainability and safeguard essential public services,” said Mbadi
The CS said the 2026/27 budget with the theme ‘Sustaining the Bottom-Up Economic Transformation Agenda for Resilient and Inclusive Growth Amid Global Uncertainty’, aims to prioritize various interventions under the Bottom- Up economic Transformation Agenda that promote private sector led growth, expand employment opportunities and enhance service delivery of public service while preserving fiscal sustainability and building resilience against emerging economic challenges.
He said to boost revenue, the government will continue to strengthen implementation of National Tax Policy, and the Medium -Term Revenue Strategy aimed at simplifying tax laws, rationalizing tax expenditure and creating a fair, predictable and efficient tax system.
The CS noted that during the FY, the Kenya Revenue Authority will also intensify reforms to strengthen revenue mobilization, modernize tax administration and improve taxpayer experience through various measures that have been put in place.
During the presentation to the National Assembly, Mbadi who unveiled Sh. 4.8 trillion Budget Estimates for the FY 2026/27 announced that the fertilizer Subsidy Programme has been allocated sh. 18.0 billion, Settlement of the Landless Sh. 9.4 billion, Food Systems Resilience Project Sh. 5.4 billion, National Agriculture Value Chain Development Project Sh. 4.7 billion, Blue Economy Priority Projects Sh. 4.6 billion, De-risking, Inclusion and Value Enhancement of Pastoral Economies programme Sh. 3.3 billion while Sugar Reforms has been allocated 2.7 billion.
Other projects that have been allocated funds include, Integrated Natural Resources Management Programme with Sh. 2.5 billion, Seed Subsidy Programme Sh. 2.0 billion, Registration of Title deeds, and Digitization and Construction of Land Registries Sh. 1.6 billion, Resilience for Food and Nutrition Security Program Sh. 1.6 billion, Kenya Livestock Commercialization Programme and Enable Youth Programme have each been allocated Sh. 1.3 billion respectively.
The CS reiterated the government’s continued to support to farmers through input financing, subsidies and extension services, a move he noted will move the country from food deficit to food surplus to reduce reliance on food imports and revamp export crops.
He announced that the fertilizer disbursement under the subsidy programme have increased to 21.3 million bags in 2025 from 1.4 million bags disbursed in 2022.
“The subsidy resulted to farmers realizing an estimated savings of approximately Sh. 105 billion over a two-year period, increasing investment in production,” stated Mbadi.
On health the CS said the government will prioritize payment of the outstanding National Health Insurance fund pending bills owed to contracted healthcare facilities with claims not exceeding Sh. 10 billion.
“The claims earmarked for settlement under this allocation have been duly verified and adjudicated and will be fully paid before the close of this financial year,” assured the CS.
He at the same time said that the funding to county government has increased with the equitable share to counties increasing from sh. 370.0 billion FY 2022/2023 budget to Sh. 428.0 billion in the FY 2026/27.
Total allocations that include shareable revenue and additional allocations from the National government allocations as well as donor proceeds has increased from Sh.392.4 billion to Sh.502.0 billion over the same period.
The Budget estimates for 2026/27 has allocated sh. 220.4 billion towards maintenance, rehabilitation and construction of roads and bridges, Sh. 30.9 billion has also been allocated to expand access to electricity and increase power generation through investments in-grid connectivity, off-grid solutions and renewable energy projects.
The government has also allocated sh. 41.8 billion towards social protection and affirmative action initiatives to support and safeguard vulnerable groups in society, while Sh. 110.2 billion has been allocated to empower youth and support businesses owned by youth and women.
By Bernadette Khaduli
