Kenyans are set to access more government services after the Cabinet approved a record Ksh4.7 trillion budget for the 2026/27 financial year.
The budget, which was endorsed on February 10, 2026, is the largest in Kenya’s history. The budget is also Ksh410 billion more than the existing Ksh4.29 trillion budget. The government says the increase will be used to boost economic growth.
The Treasury estimates that Kenya will collect Ksh3.53 trillion in revenue. However, the government will also borrow some of the funds to fill the gap. The funds will be borrowed locally and from abroad.
The county governments will benefit the most from the budget. The county governments will receive Ksh495.7 billion. This is more than the Ksh474.9 billion the county governments received last year.
Out of the Ksh495.7 billion, Ksh420 billion will go to the county governments as equitable share. The funds will constitute 21.9 per cent of the audited revenue. An additional Ksh15.2 billion will go to the Equalisation Fund. The county governments will also receive Ksh75.7 billion for conditional and special purpose grants.
Most of the budget will be used to run government operations. The recurrent expenditure has been allocated Ksh3.46 trillion, while the development projects will receive Ksh749.5 billion.
The government has indicated that the country’s economy will continue to grow steadily in the coming years. The economy is projected to grow by 5 percent in 2025 and 5.3 percent in 2026. The government attributes the growth of the economy to good weather conditions that will result in good agricultural products as well as the introduction of climate-smart farming.
The budget has been themed “Accelerating Gains under the Bottom-Up Economic Transformation Agenda for Inclusive and Sustainable Growth.” This year’s budget has been focused on investing in areas that will grow the economy as opposed to last year’s focus of cutting costs.
The priority areas that the government has identified include education, health, energy, roads, agriculture, social protection, and security. The government has also identified the need to enhance reforms in the management of finances, digital services, as well as PPPs.
This will be the fourth budget under President William Ruto’s administration since he took over as President of the Republic of Kenya under the Kenya Kwanza party. The budget now goes to the Parliament for approval before the new financial year begins.
