National Treasury Cabinet Secretary John Mbadi has projected a Ksh5.4 trillion budget for the 2027/2028 financial year, representing an increase from the current Ksh4.8 trillion budget.
Speaking during the NCBA Bank 2026 Kenya’s Outlook in Nairobi on Tuesday, November 3, 2026, Mbadi said the proposed budget would be supported by revenue projections of slightly below Ksh4 trillion.
“For the financial year 2027/2028, we are planning a budget of about Ksh5.4 trillion, with revenue projected at just under Ksh4 trillion,” Mbadi said.
The Treasury CS projected a fiscal deficit of 5.9 per cent of the Gross Domestic Product (GDP), noting that his team was working towards reducing the figure further while making provisions for pending bills and priority government programmes.
“The fiscal deficit is projected at 5.9 per cent of GDP, but I am still working with my team even further down below 5.9 per cent as we provide for pending bills and priority programmes before declining steadily to 4.6 per cent by the financial year 2029/2030,” he stated.
Mbadi said the government had identified five key areas it would focus on to safeguard the country’s economic gains and strengthen public finances.
The first priority involves broadening the tax base without increasing existing tax rates.
According to Mbadi, the Treasury intends to rely on data, technology, improved compliance and administrative reforms to enhance revenue collection.
“One, broadening the tax base but not raising tax rates. Through data, technology and better compliance, administrative reforms, some of which will start taking effect from January next year,” he explained.
The second priority involves improving public expenditure by ensuring the government spends within its means.
Mbadi said the Treasury would embrace zero-based budgeting as part of efforts to improve resource allocation and ensure government spending is directed towards priority programmes.
The National Treasury has set November 16, 2026, as the deadline for submitting Kenya’s 2027 Budget Policy Statement to Parliament, bringing forward the budget process ahead of the August 2027 General Election.
Treasury Cabinet Secretary John Mbadi said in a notice on Tuesday, November 3, 2026, that the revised calendar was intended to accommodate the upcoming elections and allow the government to prepare the 2027/28 financial year budget earlier.
“In view of the revised budget calendar to accommodate the General Elections scheduled for August 2027, the 2027 BPS will be submitted to Parliament by 16th November 2026,” Mbadi said in a public notice.