The National Treasury has proposed a record KSh4.82 trillion budget for the 2026/27 financial year, marking the largest government spending plan in Kenya’s history.
The budget estimates, submitted to Parliament ahead of the April 30 deadline, outline massive expenditure plans alongside increased borrowing to finance government operations and development programmes.
According to the proposal, the government intends to borrow more than KSh1.1 trillion to bridge the financing gap. Of this amount, approximately KSh995.7 billion is expected to come from the domestic market, while KSh116.2 billion will be sourced externally.
The proposed expenditure will be shared across three major areas.
The national government, including the Executive, Parliament, and Judiciary, is set to receive KSh2.89 trillion.
Another KSh1.5 trillion has been allocated to Consolidated Fund Services, which mainly caters for debt obligations and other mandatory expenditures, while county governments are expected to receive KSh420 billion, slightly higher than the allocation in the current financial year.
Recurrent expenditure will consume the largest portion of the budget at KSh3.54 trillion. This covers salaries, operational costs, pensions, and debt servicing.
Development expenditure has been projected at KSh749 billion, aimed at funding infrastructure, public projects, and other long-term investments.
Within the national government allocation, the Executive is expected to take the largest share, accounting for approximately 97 percent of the total allocation.
Meanwhile, Parliament has been allocated KSh48.69 billion under the proposal, while the Judiciary is set to receive KSh30.44 billion.
The proposed budget now awaits parliamentary review and approval as lawmakers scrutinise spending priorities, borrowing plans, and allocations across various sectors.
