MPs have questioned the National Treasury’s fiscal framework for the 2026/27 financial year, raising concerns over persistent underperformance in revenue collection and the credibility of projected revenues.
The legislators raised the concerns when Cabinet Secretary for the National Treasury John Mbadi, Principal Secretary Chris Kiptoo, and Director General for Budget and Fiscal Economic Affairs Albert Mwenda appeared before the National Assembly Budget and Appropriations Committee, chaired by Samuel Atandi, to defend the Sh4.785 trillion budget framework.
The budget is anchored on projected revenues of Sh3.629 trillion, including Appropriation-in-Aid, and a fiscal deficit of Sh1.111 trillion, equivalent to 5.3 per cent of the gross domestic product (GDP).
They challenged the sustainability of the revenue projections, questioning whether the government can meet its targets given past collection shortfalls. They also raised concerns over how county own-source revenue is factored into national forecasts.
In response, Treasury outlined ongoing reforms under the National Tax Policy and Medium-Term Revenue Strategy aimed at strengthening revenue mobilisation.
“The fiscal framework integrates reforms under the National Tax Policy and Medium-Term Revenue Strategy, including digital tax administration upgrades through the Kenya Revenue Authority and expanded non-tax revenue collection by MDAs,” the Treasury said.
The CS also highlighted enforcement measures aimed at improving compliance and widening the revenue base.
“These reforms include land rent restructuring and instant fines, alongside enhanced KRA enforcement systems,” he said.
On public financial management, Treasury pointed to progress in digitisation through the Electronic Government Procurement platform and plans for an integrated county revenue collection system under the Intergovernmental Budget and Economic Council.
Officials also said reforms to the Single Treasury Account are improving coordination in cash management, though full consolidation is still underway.
The Committee further raised concerns over the Social Health Authority (SHA) programme, questioning enrolment figures, contribution levels, and benefit utilisation.
In response, the Treasury said that over 27 million Kenyans have registered under SHA. Still, only about 5 million are active contributors, with detailed beneficiary data and utilisation lying with the SHA Board and the Ministry of Health (MoH).
The Committee is expected to conclude scrutiny of sectoral allocations and table its report in the National Assembly next week.
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