Kenya Unveils 37 Billion National Budget for 2026/27 FY
13:53 12.06.2026 (Updated: 14:34 12.06.2026)
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The Treasury has cut its 2026 growth forecast to 5.0% from 5.3% due to the Middle East conflict, but expects a recovery to 5.2% in 2027, while inflation is projected to stay within the target range of 2.5%–7.5%, according to the budget statement.
Budget highlights:
The current account deficit is expected to widen to 3% of GDP in 2026 due to higher oil prices and lower exports;
The fiscal deficit is projected to narrow from 5.5% of GDP in 2026/27 to 3.3% by 2028/29;
All public procurement will be conducted exclusively through the Electronic Government Procurement System, ending exemptions;
Banks get a three‑year extension to meet the $77 million minimum core capital requirement;
$30 million is allocated for village elders’ stipends, and $15.4 million for youth internship program;
Treasury revises digital payments to exempt core financial service providers.
"I have deliberately chosen not to introduce new tax measures or increase tax rates that would further overburden hardworking Kenyans and their families," said Treasury Secretary John Mbadi.
Budget highlights:
The current account deficit is expected to widen to 3% of GDP in 2026 due to higher oil prices and lower exports;
The fiscal deficit is projected to narrow from 5.5% of GDP in 2026/27 to 3.3% by 2028/29;
All public procurement will be conducted exclusively through the Electronic Government Procurement System, ending exemptions;
Banks get a three‑year extension to meet the $77 million minimum core capital requirement;
$30 million is allocated for village elders’ stipends, and $15.4 million for youth internship program;
Treasury revises digital payments to exempt core financial service providers.
"I have deliberately chosen not to introduce new tax measures or increase tax rates that would further overburden hardworking Kenyans and their families," said Treasury Secretary John Mbadi.
