NAIROBI, Kenya – The National Treasury has invited Kenyans and stakeholders to submit views on the Draft 2026 Budget Policy Statement (BPS), a key policy document that sets the government’s spending priorities and fiscal direction for the 2026-27 to 2028-29 medium-term period.
In a public notice, the Treasury said the move is aimed at deepening transparency and public participation in the budget-making process, as required under the Public Finance Management Act, Cap 412A.
The Budget Policy Statement outlines the government’s strategic priorities, provides an assessment of the current economic environment, and presents medium-term macroeconomic and fiscal projections.
It also proposes expenditure ceilings for the national government for the 2026-27 financial year and sets out fiscal responsibility principles to guide public finance management over the medium term.
Treasury Principal Secretary Dr Chris Kiptoo said the draft policy places strong emphasis on prudent public debt management and strengthening debt sustainability, while advancing the government’s Bottom-Up Economic Transformation Agenda.
“The policy prioritises investments in human capital development, agricultural transformation, energy, transport and logistics, which are critical drivers of inclusive economic growth,” Kiptoo said.
The Treasury said publishing the draft BPS ahead of its submission to Parliament is intended to improve public understanding of Kenya’s public finances and promote informed debate on economic and development priorities before the national budget is prepared.
Members of the public have been urged to review the Draft 2026 Budget Policy Statement, available on the National Treasury website, and submit comments by January 9, 2026. Submissions should be sent to bps@treasury.go.ke.
According to Kiptoo, preparation of the draft document was a consultative process involving ministries, state departments and agencies, sector working groups, county governments, constitutional commissions and independent offices.
Development partners, private sector players and other non-state actors were also engaged.
He added that the policy captured views from stakeholders and members of the public who participated in hearings held between November 19 and 21, 2025, aimed at aligning fiscal policy with prevailing economic conditions and national development priorities.
Kiptoo said implementation of the current 2025-26 budget has progressed steadily but has faced challenges, including slow adoption of e-procurement systems, revenue shortfalls and emerging expenditure pressures.
By the end of September 2025, total revenue — including Appropriation-in-Aid — stood at Sh709.6 billion against a target of Sh793.2 billion, with ordinary revenue accounting for Sh573.5 billion.
To address these pressures and support fiscal consolidation, Kiptoo said the Treasury will present Supplementary Estimates I to adjust for revenue underperformance and additional spending needs.
Looking ahead, the Treasury said fiscal policy for 2026-27 and the medium term will remain anchored on a growth-supportive consolidation strategy focused on enhanced revenue mobilisation, expenditure optimisation and protection of essential programmes and social interventions.
