The National Treasury has proposed a Ksh 4.82 trillion spending plan for the 2026/27 financial year, setting a new high for government expenditure as authorities navigate a tightening global economic environment.
Budget projections submitted to Parliament before the April 30 deadline indicate a slight easing in economic growth, expected to dip from 5.3 % to 5.0 %. The adjustment is attributed to external pressures, including geopolitical tensions affecting global trade flows.
To support the spending plan, the government targets Ksh 3.63 trillion in total revenue, with Ksh 2.99 trillion anticipated from ordinary collections. The remaining gap of about Ksh 1.1 trillion will be financed through borrowing.
Most of this borrowing will be sourced domestically, with Ksh 995.7 billion expected from the local market, the highest level on record. External financing is projected at Ksh 116.2 billion.
Expenditure will be divided into three main areas: Ksh 2.89 trillion for the national government, Ksh 1.5 trillion for Consolidated Fund Services, and Ksh 420 billion allocated to county governments, reflecting a modest increase from the previous cycle.
A large portion of the national allocation will go toward recurrent spending, including public sector wages, operational costs and debt obligations, which together account for Ksh 3.54 trillion. Development spending is set at Ksh 749 billion.
Within the national government, the Executive is expected to receive Ksh 2.8 trillion, representing the bulk of the allocation. Of this, Ksh 1.98 trillion will cover recurrent expenses, while Ksh 840.6 billion is designated for development programmes.
Parliament has been allocated Ksh 48.69 billion, while the Judiciary is set to receive Ksh 30.44 billion.
The proposed budget reflects a continued balancing act between sustaining government operations, funding development priorities, and managing rising debt levels amid global economic uncertainty.
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