The National Treasury has proposed a record-high budget of up to Ksh.4.8 trillion for the 2026/2027 fiscal year, which begins in July 2026. In line with the April 30 deadline, the Treasury submitted the government’s budget estimates to Parliament, setting total expenditure at Ksh.4.82 trillion—the largest in the nation’s history.

To fund this spending, the Treasury plans to borrow over Ksh.1.1 trillion, primarily from the domestic market. This borrowing comes despite an anticipated slowdown in economic growth from a projected 5.3% to 5.0%, attributed to the effects of the US-Israel-Iran conflict on global trade.

The Ksh.4.8 trillion is allocated across three main areas: Ksh.2.89 trillion for national government operations (including the Judiciary and Parliament), Ksh.1.5 trillion for Consolidated Fund Services, and Ksh.420 billion for county governments—an increase of Ksh.5 billion from the current year’s allocation.

At the national level, recurrent expenditure—covering salaries, operations, maintenance, and public debt servicing—will consume Ksh.3.54 trillion, while development expenditure is set at Ksh.749.0 billion.

The budget will be financed through Ksh.3.63 trillion in revenue, comprising taxes and Appropriations-in-Aid (fees and levies collected by government entities for services rendered). Ordinary revenue alone is projected to reach Ksh.2.99 trillion, up from the current year’s target of Ksh.2.78 trillion.