Mbadi: No easy budget as global shocks, inflation and revenue shortfalls bite
Mbadi noted that the current budget is being prepared in a challenging global environment, including disruptions linked to the conflict in the Middle.
The iconic Treasury briefcase ahead of budget reading last year. (Photo: File)
Treasury Cabinet Secretary (CS) John Mbadi has said the 2026/27 national budget has been developed under difficult economic conditions shaped by external global shocks, rising inflation and underperformance in revenue collection, but maintains that it reflects broad public input and targeted interventions aimed at strengthening key sectors of the economy.
Speaking on Thursday ahead of the budget presentation in the National Assembly, CS Mbadi said there are no surprises in the budget, noting that revenue-raising measures and expenditure proposals have already been subjected to public participation and are in the public domain.
“The budget estimates and the revenue-raising measures have been with the public from April 30 to date. There are really no surprises; what remains is giving details of what is already in the estimates,” he said.
He said the Constitution has transformed the budget-making process by strengthening public participation and improving transparency in public finance management, compared to earlier years when budget details were less accessible to the public.
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Mbadi noted that the current budget is being prepared in a challenging global environment, including disruptions linked to the conflict in the Middle East, which has affected global economic stability and contributed to inflationary pressures.
“There is no easy budget. This year’s budget is even more challenging because it is informed by a major external shock, underperformance in revenue collection and rising inflation,” he said.
He added that inflation, which was previously contained, is now on an upward trend, making fiscal planning more complex as the government balances competing priorities within limited fiscal space.
Mbadi said the budget also reflects input from Kenyans and stakeholders collected through nationwide public participation exercises, including sector hearings and regional consultations.
“The proposed budget reflects what Kenyans told us during public participation. We have taken those views seriously and integrated them into the final framework,” Mbadi said.
According to him, key sectors such as health, education, infrastructure, agriculture and social protection programmes have benefited from public input, alongside agricultural interventions such as fertiliser subsidies and improved seed distribution aimed at boosting food production.
His remarks come as finance ministers across Kenya, Uganda and Tanzania prepare to present their 2026/27 budgets to their respective parliaments on Thursday.
Kenya, the biggest economy in the East African region, plays a central role in shaping the region’s fiscal direction and economic outlook.