Connect with us

Hi, what are you looking for?

A report released by Controller of Budget (CoB) on Wednesday reported an increase in the debt stock from Sh11.8 trillion recorded at the end of June 2025, equivalent to 69.9 per cent of Gross Domestic Product (GDP)/CFM

Kenya

CS Mbadi Defends Tough 2026/27 Budget Amid Economic Pressures

Mbadi said there is “no easy budget,” noting that this year’s spending plan has been shaped by a combination of external economic shocks.

NAIROBI, Kenya, June 11 — Treasury Cabinet Secretary John Mbadi has defended the government’s 2026/2027 budget, saying the country is facing difficult economic realities that have made the current financial plan one of the most challenging in recent years.

Speaking ahead of the budget presentation in Parliament, Mbadi said there is “no easy budget,” noting that this year’s spending plan has been shaped by a combination of external economic shocks, underperformance in revenue collection and rising inflation.

According to the Treasury CS, the government has been forced to make difficult decisions as it seeks to balance public expenditure, debt obligations and the growing demand for essential services.

“This year’s budget is even more challenging because it is informed by a major external shock, underperformance in revenue collection and rising inflation,” Mbadi said.

The Treasury is expected to outline spending priorities for key sectors including education, healthcare, agriculture, infrastructure and security, while also addressing concerns over the rising cost of living.

The budget comes at a time when Kenyans are demanding tax relief, lower prices for basic commodities and increased job opportunities amid economic hardship.

Mbadi has maintained that the government remains committed to stabilising the economy, improving revenue collection and reducing reliance on borrowing while protecting critical public services.

Economists say the Treasury faces mounting pressure to contain the fiscal deficit and manage public debt without introducing measures that could further strain households and businesses already struggling with high living costs.

The 2026/2027 budget is expected to set the tone for the government’s economic strategy in the coming financial year as Parliament begins debate on the proposed allocations and taxation measures.

Comments

More on Capital News

Sustainability Watch

Bargurei urged organisations to rethink how they engage with communities and assess the real outcomes of their social investments.

Kenya

Mbadi has revealed that the Sh4.82 trillion budget comes at a tough economic moment shaped by inflation and global instability.

BUDGET

At the heart of the Department 's submission was the critical push to redefine how goods moving within the bloc are classified. Under Kenya’s...

crime

Investigators also recovered a company laptop and several mobile phones, which are undergoing forensic analysis to establish the full extent of the digital theft.

Kenya

A Nairobi raid has triggered fresh debate after Sh15mn worth of suspected fake goods were seized.

BUDGET

Mining Principal Secretary Harry Kimutai told lawmakers that Kenya’s mineral wealth remains largely untapped due to inadequate mapping and limited investment in research.

crime

According to investigators, the attackers fatally assaulted a man at the entrance before firing gunshots into the air to scare residents.

Kenya

The initiative focuses on empowering young people through education support, mentorship and access to essential learning resources