NAIROBI, Kenya- The National Treasury has released its final expenditure proposals for the 2026/27 financial year, outlining a modest downward revision of economic growth and a continued rise in county funding allocations.
According to the budget framework, Treasury has revised Kenya’s GDP growth projection from 5.3% to 5.0%, citing global economic uncertainties and external shocks affecting trade and fiscal stability.
The updated estimates also show total government expenditure rising to approximately KSh 4.7 trillion, reflecting increased spending pressures on debt servicing, development projects, and devolution commitments.
A key highlight of the budget is the proposal to allocate KSh 420 billion to county governments as their equitable share, maintaining devolution funding levels amid broader fiscal tightening.
Treasury officials say the allocation is part of efforts to support service delivery at the county level while balancing national fiscal consolidation goals.
The 2026/27 budget also signals continued reliance on domestic borrowing to bridge the fiscal gap, even as the government pledges to maintain debt sustainability and improve revenue collection efficiency.
The proposals will now move to Parliament for debate and approval, setting the stage for one of the most closely watched budget cycles ahead of the 2027 election period.
