State projects 9.7pc rise in spending for 2026/27 financial year - Capital Business
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Kenya

State projects 9.7pc rise in spending for 2026/27 financial year

NAIROBI, Kenya, Oct 21 – Kenya’s total government expenditure is projected to rise by 9.69 percent in the 2026/27 financial year to Sh4.65 trillion, according to the 2025 Budget Review and Outlook Paper (BROP) released by the National Treasury.

The figure, equivalent to 22.2 percent of GDP, is up from Sh4.27 trillion in 2025/26 and reflects continued implementation of key programmes under the Bottom-Up Economic Transformation Agenda (BETA).

At the same time, total revenue including Appropriations-in-Aid (AiA) is expected to grow by 7.9 percent to Sh3.58 trillion, driven by tax policy and administration reforms aimed at improving compliance, expanding the tax base, and enhancing efficiency.

The Treasury said the 2026/27 budget will maintain fiscal discipline through a zero-based budgeting approach, focusing spending on high-impact programmes in agriculture, housing, digital transformation, and healthcare under the Fourth Medium-Term Plan of Vision 2030.

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