All eyes on CS Mbadi as Treasury tables historic Sh4.8 trillion budget

Cabinet Secretary for the National Treasury John Mbadi will today present one of the country’s historic Sh4.8 trillion Budgets for the 2026/27 financial year, as Kenyans hope for relief amid the high cost of living.

The outspoken CS will today convince millions of Kenyans that President William Ruto’s administration still has a realistic plan to address the rising cost of living, create jobs, support businesses, and manage the country’s growing debt burden without burdening them further.

For several households, economic recovery is still a mirage and not a reality, considering the high cost of living that has turned many Kenyans into a hand-to-mouth mode of survival.

While inflation has eased compared to previous years, many Kenyans continue to navigate with high food prices, expensive transport costs and shrinking disposable incomes.

Young people entering the job market are demanding opportunities, while small businesses are looking for policies that can help them survive and expand.

Mbadi’s docket has indicated that the budget will focus on job creation, business growth, improved service delivery and enhanced livelihoods. These are noble objectives.

However, critics argue that Kenyans are increasingly interested in outcomes rather than promises. They want to know how many jobs will be created, which sectors will receive support and whether public resources will be used efficiently.

Significantly vital is the question of debt management. With a significant portion of government revenue still going towards servicing loans, there is growing public interest in how the Treasury intends to balance development spending with fiscal discipline.

Another key area to watch will be taxation. Following past and present public protests to previous tax proposals, many Kenyans and economic stakeholders will be keenly watching for any measures that could increase the cost of doing business or reduce household incomes. The challenge for the Treasury is to raise sufficient revenue without stifling economic activity.

Summarily, thousands of teachers, police recruits and village elders are set to benefit from the government’s 2026/27 budget after Mbadi unveiled major allocations targeting employment and public service delivery.

The Sh4.8 trillion spending plan places significant emphasis on job creation and strengthening essential services, with education, security and grassroots administration emerging among the biggest winners.

Teachers received a major boost after the government allocated funds to absorb 20,000 intern teachers into permanent and pensionable employment.

The move is expected to ease uncertainty for many Junior Secondary School teachers who have been serving on temporary contracts.

To support the transition, Sh4.9 billion has been set aside. The budget also provides resources for the promotion of at least 30,000 teachers and the implementation of the second phase of the 2025-2029 Collective Bargaining Agreement.

The legislators said the funding is intended to improve staffing levels in schools while enhancing job security for teachers across the country.

The security sector is another key beneficiary after Parliament approved additional funding to support the recruitment of 10,000 police officers. The planned hiring is expected to strengthen security operations and address personnel shortages within the National Police Service.

Village elders, who have for years pushed for formal government recognition, also secured a significant victory. Under the new budget, they will begin receiving monthly stipends of Sh3,000.

MPs backing the allocation argued that village elders play a crucial role in community administration and conflict resolution and deserve government support for their services.

Beyond the three groups, the budget contains several measures aimed at boosting employment opportunities and supporting vulnerable households.

Kenyans seeking diaspora jobs are expected to benefit from a newly established Labour Migration and Export Programme. The initiative has been allocated about Sh68.9 million to facilitate labour mobility, negotiate employment agreements with foreign countries and safeguard the welfare of Kenyan workers overseas, including seafarers.

Ruto’s administration has also retained funding for the NYOTA programme, allocating Sh4.7 billion to support youth employment and economic empowerment initiatives. However, stakeholders who appeared before Parliament noted that many young people, especially in rural areas, still face challenges accessing the programme.