02/05/2026
The NATIONAL TREASURY has proposed a record Ksh4.82 trillion budget for the 2026/27 financial year, marking the highest government expenditure in Kenya’s history.
To finance the proposed expenditure, the Treasury plans to raise Ksh3.63 trillion in revenue, with ordinary revenue projected at Ksh2.99 trillion. The remaining deficit of Ksh1.1 trillion will be covered through borrowing, largely from the domestic market.
Of the borrowing, Ksh995.7 billion is expected to be sourced locally, while Ksh116.2 billion will come from external lenders, making it the highest level of domestic borrowing in the country’s history.
The budget will be distributed across three main categories, with Ksh2.89 trillion allocated to the national government, Ksh1.5 trillion to Consolidated Fund Services, and Ksh420 billion to county governments — an increase of Ksh5 billion from the current allocation.
At the national level, Ksh3.54 trillion will go towards recurrent expenditure, including salaries, operations, and debt servicing, while Ksh749 billion is earmarked for development projects.
Within the national government allocation, the Executive is set to receive Ksh2.8 trillion, representing 97% of the share. Of this, Ksh1.98 trillion will fund recurrent spending, while Ksh840.6 billion will be directed towards development programmes.
Parliament is set to receive Ksh48.69 billion, while the Judiciary has been allocated Ksh30.44 billion.