NAIROBI, Kenya, Mar 9 – The National Assembly of Kenya Budget and Appropriations Committee has proposed a Sh2.878 trillion national government spending ceiling for the 2026/27 financial year as part of its consideration of the Budget Policy Statement.
According to the committee’s report, the proposed allocation includes Sh2.797 trillion for the Executive, Sh9 billion for the Office of the Auditor-General, Sh50.7 billion for Parliament, and Sh30.4 billion for the Judiciary.
The committee also recommended that county governments receive quitable share of Sh420 billion, while the Equalization Fund is set to receive Sh9.6 billion based on the latest audited and approved revenue figures. Additionally, counties are expected to receive Sh75.69 billion in extra allocations.
Budget and Appropriations Committee Chairperson Samuel Atandi said the proposed budget framework prioritizes sectors that will sustain economic growth and address pending government obligations.
He noted that the economy is projected to grow by 5.3 percent in the next financial year, with the budget supporting agriculture and facilitating the payment of pending bills, particularly in the roads sector.
The committee also emphasized the need to strengthen revenue collection by allocating more resources to the Kenya Revenue Authority to support digitization and expand the tax base.
Vice-Chairperson Robert Pukose urged ministries, departments, and agencies to prioritize the settlement of pending bills, noting that delayed payments limit money circulation in the economy.
Majority Leader Kimani Ichung’wah supported calls for the National Treasury of Kenya to fast-track the rationalization, merger, or dissolution of non-viable state-owned enterprises by October 2026 to help control the fiscal deficit.
During debate, Owen Baya questioned the effectiveness of the Equalization Fund in addressing development disparities across marginalized regions.
In response, Atandi said the committee had recommended that the Commission on Revenue Allocation review the current formula used to distribute the fund.
The committee also raised concerns about rising public debt, with debt servicing costs projected to reach about Sh1.1 trillion in the current financial year.
The National Assembly is expected to vote on the motion in its next sitting, after which the report will be transmitted to the Senate of Kenya for concurrence.
