Nairobi: 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.
According to Kenya News Agency, these measures are intended to reinforce public debt sustainability and safeguard essential public services, as stated by Mbadi. The 2026/27 budget, themed '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. This agenda promotes private sector-led growth, expands employment opportunities, and enhances service delivery of public service while preserving fiscal sustainability and building resilience against emerging economic challenges.
To boost revenue, the government plans to continue strengthening the National Tax Policy and the Medium-Term Revenue Strategy. This strategy aims at simplifying tax laws, rationalizing tax expenditure, and creating a fair, predictable, and efficient tax system. The Kenya Revenue Authority will also intensify reforms to strengthen revenue mobilization, modernize tax administration, and improve taxpayer experience through various measures.
During the presentation to the National Assembly, Mbadi unveiled Sh. 4.8 trillion Budget Estimates for the FY 2026/27. He announced allocations for several projects, including Sh. 18.0 billion for the fertilizer Subsidy Programme, Sh. 9.4 billion for the Settlement of the Landless, Sh. 5.4 billion for the Food Systems Resilience Project, and other significant allocations towards national development projects.
The government continues to support farmers through input financing, subsidies, and extension services. This initiative aims to move the country from a food deficit to a food surplus, reducing reliance on food imports and revamping export crops. Fertilizer disbursement under the subsidy program increased significantly, resulting in estimated savings of approximately Sh. 105 billion for farmers over two years.
In the health sector, the government will prioritize payments of outstanding National Health Insurance fund pending bills, with claims not exceeding Sh. 10 billion to be settled within the financial year. Additionally, funding to county governments has increased, with the equitable share rising from Sh. 370.0 billion in FY 2022/2023 to Sh. 428.0 billion in FY 2026/27.
The Budget estimates for 2026/27 have allocated Sh. 220.4 billion for the maintenance, rehabilitation, and construction of roads and bridges. Sh. 30.9 billion has been allocated to expand access to electricity and increase power generation through investments in grid connectivity, off-grid solutions, and renewable energy projects. Furthermore, Sh. 41.8 billion is allocated towards social protection and affirmative action initiatives, while Sh. 110.2 billion is dedicated to empowering youth and supporting businesses owned by youth and women.