By Afrireport 
The Cabinet has approved a KSh4.7 trillion budget for the 2026/27 financial year.
Marking one of the most ambitious fiscal plans under the Kenya Kwanza administration as it seeks to accelerate economic growth, stabilise public finances and deliver on its development agenda.
According to a Cabinet dispatch issued after a high level meeting chaired by President William Ruto.
The proposed budget projects total revenues of KSh3.53 trillion against total expenditure of KSh4.7 trillion, reflecting the government’s continued balancing act between stimulating growth and managing fiscal pressures.
The approved budget framework underscores the administration’s commitment to prioritising economic transformation, job creation and service delivery, while maintaining a firm focus on fiscal consolidation.
Senior government officials said the spending plan is designed to unlock productivity across key sectors of the economy, including agriculture, manufacturing, infrastructure, healthcare, education and affordable housing.
The Cabinet noted that the revenue projections are anchored on improved tax administration, expansion of the tax base and enhanced compliance rather than the introduction of punitive new taxes.
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This approach aligns with President Ruto’s repeated assurances that his government is focused on easing the cost of living while growing the economy sustainably.
Despite the projected revenue shortfall of over KSh1.1 trillion, the Cabinet expressed confidence that prudent expenditure controls, reforms in state-owned enterprises and targeted borrowing would help bridge the gap without placing excessive burden on taxpayers.
Officials emphasised that the government remains committed to reducing reliance on debt and improving efficiency in public spending.
The 2026/27 budget also reflects the Kenya Kwanza administration’s broader economic strategy of shifting from consumption driven growth to production led development.
Key interventions are expected to support small and medium enterprises, boost agricultural value chains, expand access to affordable credit and enhance infrastructure critical to trade and industrialisation.
In addition, the Cabinet reaffirmed its focus on protecting social programmes aimed at cushioning vulnerable households, even as the government tightens its belt in other areas.
Investments in education, healthcare, and social protection are expected to remain central pillars of the spending plan.
The approved budget will now proceed to the next stages of the budget making process, including parliamentary scrutiny and public participation, as required by law.
Treasury officials are expected to provide further details on sectoral allocations, financing strategies and fiscal targets in the coming weeks.
As the Kenya Kwanza administration enters a critical phase of its term, the KSh4.7 trillion budget is being positioned as a defining tool to drive economic recovery, restore investor confidence and lay the foundation for long term growth amid rising expectations from Kenyans for tangible results.
