The highly anticipated budget comes at a time when households and businesses continue to face pressure from the rising cost of living, unemployment and increasing prices of everyday essentials.
Many citizens are expected to scrutinize the budget closely to determine whether it offers practical solutions to the economic challenges affecting millions.
According to Treasury estimates, the government projects total revenue of Sh3.67 trillion. This figure includes Sh2.9 trillion from ordinary revenue collection, Sh644 billion in Appropriations in Aid and Sh44 billion in grants.
Despite the projected income, government expenditure is expected to exceed collections, creating a budget deficit of approximately Sh1.2 trillion. Treasury plans indicate the shortfall will be financed through both domestic and external borrowing.
Officials have projected domestic borrowing at nearly Sh1 trillion, while external borrowing is expected to contribute Sh148 billion.
According to Treasury estimates, the government projects total revenue of Sh3.67 trillion. This figure includes Sh2.9 trillion from ordinary revenue collection, Sh644 billion in Appropriations in Aid and Sh44 billion in grants.
Despite the projected income, government expenditure is expected to exceed collections, creating a budget deficit of approximately Sh1.2 trillion. Treasury plans indicate the shortfall will be financed through both domestic and external borrowing.
Officials have projected domestic borrowing at nearly Sh1 trillion, while external borrowing is expected to contribute Sh148 billion.
At the same time, the government intends to clear pending bills amounting to Sh83 billion in an effort aimed at injecting liquidity into the economy and easing pressure on businesses.
Key sectors identified for major investment include education, infrastructure development and economic empowerment programmes.
Key sectors identified for major investment include education, infrastructure development and economic empowerment programmes.
The administration argues that increased spending in these areas will help stimulate economic growth and expand employment opportunities, particularly for young people entering the labour market.
However, the spending plan arrives amid growing public debate over Kenya’s debt levels and calls for greater fiscal discipline. Critics argue that increasing borrowing could place additional pressure on future government finances.
Meanwhile, opposition leaders unveiled what they described as the “People’s Budget,” presenting an alternative Sh4.32 trillion expenditure proposal.
However, the spending plan arrives amid growing public debate over Kenya’s debt levels and calls for greater fiscal discipline. Critics argue that increasing borrowing could place additional pressure on future government finances.
Meanwhile, opposition leaders unveiled what they described as the “People’s Budget,” presenting an alternative Sh4.32 trillion expenditure proposal.
The opposition plan seeks to reduce the fiscal deficit to Sh593.5 billion, equivalent to 2.8 per cent of Gross Domestic Product.
Speaking during the launch, Wiper Party leader Kalonzo Musyoka criticised the country’s debt burden and questioned allocations towards debt servicing and pensions.
The opposition framework also proposes increased investment in healthcare and education, restoration of social programmes, an Sh80 billion youth employment fund, and tax relief measures including the removal of levies on housing and mobile money transactions.
Speaking during the launch, Wiper Party leader Kalonzo Musyoka criticised the country’s debt burden and questioned allocations towards debt servicing and pensions.
The opposition framework also proposes increased investment in healthcare and education, restoration of social programmes, an Sh80 billion youth employment fund, and tax relief measures including the removal of levies on housing and mobile money transactions.
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