The Cabinet has approved a massive Ksh4.7 trillion budget for the 2026/27 financial year, a significant rise from the previous year's allocation. This plan shifts focus to scaled-up investments across sectors to drive economic growth. The government expects to collect Ksh3.53 trillion in revenues against Ksh4.7 trillion in spending.
On February 10, 2026, Kenya's Cabinet approved a Ksh4.7 trillion budget for the 2026/27 financial year, marking a Ksh410 billion increase from the current Ksh4.29 trillion plan. This approval signals the government's push for economic transformation across sectors.
County governments stand to gain Ksh495.7 billion, up from Ksh474.9 billion last year. The allocation breaks down to Ksh420 billion as an equitable share, representing 21.9 percent of audited revenue, Ksh15.2 billion for the Equalisation Fund, and Ksh75.7 billion in special allocations.
Recurrent spending will take Ksh3.46 trillion, while development initiatives receive Ksh749.5 billion. Kenya's economy shows promise, with GDP growth projected at 5 percent for 2025 and 5.3 percent for 2026, fueled by favorable weather, enhanced agricultural productivity, and climate-smart investments.
This fourth budget under President William Ruto's Kenya Kwanza administration carries the theme 'Accelerating Gains under the Bottom-Up Economic Transformation Agenda for Inclusive and Sustainable Growth'. It prioritizes sectors such as education, health, energy, infrastructure, agriculture, social protection, and national security, alongside reforms in public finance management, digitization, and public-private partnerships.
The budget now moves to Parliament for review and approval, where lawmakers will debate allocations ahead of the new fiscal year. A Ksh2 billion Contingency Fund has been allocated for unforeseen challenges, supporting fiscal discipline.
