Treasury Cabinet Secretary John Mbadi is expected to present the 2025/2026 national budget today at Parliament buildings in Nairobi, outlining how President William Ruto’s administration plans to finance a record Ksh.4.2 trillion in government spending for the new fiscal year.
This will be Mbadi’s first budget since taking over the Finance docket, becoming the second Treasury boss under the Kenya Kwanza government. His presentation comes amid growing scrutiny over the country’s debt levels and revenue performance.
The government plans to fund the ambitious budget primarily through domestic revenue collection, external grants, and borrowing. According to the Treasury, tax revenue is projected to bring in Ksh.2.7 trillion—roughly 64 percent of the total budget. Additionally, the state expects to collect Ksh.560 billion in levies and service fees under Appropriations-in-Aid (AIA), bringing the total targeted revenue to Ksh.3.3 trillion.
However, the figures still leave a gaping deficit of about Ksh.900 billion. To bridge the gap, the exchequer is banking on external grants amounting to Ksh.46.9 billion and borrowing Ksh.876 billion. Of this, Ksh.592 billion is to be raised through the domestic market, with the remaining Ksh.284 billion sourced externally.
As Mbadi steps up to deliver the statement, Kenyans will be closely watching for new tax measures, cuts, and priorities set to define government policy and public service delivery over the next year.
