Treasury Opens Public Consultation on Draft 2026 Budget Policy Statement

The National Treasury has released the Draft 2026 Budget Policy Statement for public consultation, inviting written submissions before it is finalised and tabled in Parliament.

The draft outlines the government’s fiscal framework for the 2026–27 to 2028–29 medium-term period. Prepared in line with the Public Finance Management Act, it sets out strategic priorities, reviews current economic conditions, and presents macroeconomic and fiscal projections.

The statement also proposes expenditure ceilings for the national government for the 2026–27 financial year and reaffirms fiscal responsibility principles aimed at maintaining debt sustainability. National Treasury Principal Secretary Dr Chris Kiptoo said the policy focuses on strengthening public debt management while advancing the Bottom-Up Economic Transformation Agenda. 

He noted that planned investments in human capital, agriculture, energy and transport are central to the government’s approach to inclusive economic growth. He added that prudent debt management remains a core objective of the policy.

Members of the public have been encouraged to review the draft, which is available on the Treasury’s website, and submit comments by email no later than 9 January 2026. The feedback will be considered before the final document is presented to Parliament.

Dr Kiptoo said the draft was developed through consultations with ministries, state departments, county governments, constitutional commissions, development partners and private sector representatives. The process also incorporated views collected during public hearings held in November.

According to the Treasury, this approach is intended to ensure that fiscal planning reflects prevailing economic conditions and national development priorities, while strengthening transparency and public participation in the budget process. Despite steady implementation of the 2025–26 budget, the Treasury acknowledged ongoing challenges, including delays in rolling out e-procurement systems, revenue shortfalls and rising expenditure pressures. 

By the end of September 2025, total revenue had reached Sh709.6 billion, compared with a target of Sh793.2 billion. Ordinary revenue accounted for Sh573.5 billion of the total. To address these issues, the Treasury plans to submit Supplementary Estimates to adjust spending plans in response to lower-than-expected revenue and additional expenditure requirements.