Treasury Cabinet Secretary John Mbadi has defended the proposed Sh4.78 trillion national budget before Parliament, maintaining that the fiscal framework is anchored on reforms aimed at strengthening revenue collection, improving efficiency, and sustaining development spending despite rising public debt pressures.<\/p>\n
Appearing before the National Assembly Budget and Appropriations Committee, chaired by Samuel Atandi, Mbadi said the FY 2026\/27 budget is designed around a Sh4.785 trillion expenditure plan against projected revenue of Sh3.629 trillion, leaving a fiscal deficit of Sh1.111 trillion, equivalent to 5.3 percent of GDP.<\/p>\n
Lawmakers, however, raised concerns over revenue performance, debt sustainability, and growing pressure on households already facing a high cost of living driven by taxation, inflation, and statutory deductions.<\/p>\n
Mbadi told MPs that the government is relying on structural reforms rather than new tax hikes to close the fiscal gap.<\/p>\n
In his remarks, he said the fiscal framework integrates ongoing reforms under the National Tax Policy and Medium-Term Revenue Strategy, including digital upgrades within the Kenya Revenue Authority (KRA) and expanded non-tax revenue collection by government agencies.<\/p>\n
He further noted that new administrative measures have already been embedded in revenue projections.<\/p>\n
\u201cWe have incorporated reforms such as land rent restructuring and instant fines, alongside enhanced KRA enforcement systems,\u201d Mbadi said.<\/p>\n
Members of the committee challenged the Treasury on weak revenue performance and inefficiencies at both national and county levels.<\/p>\n
Ugenya Mp David Ochieng questioned how devolved revenue streams are being factored into national fiscal planning, warning that counties are losing significant potential income.<\/p>\n
\u201cWhat measures are you to factor in own-source revenue from counties because we are losing a lot of money,\u201d he posed.<\/p>\n
Treasury responded that ongoing digitisation efforts and enforcement reforms are expected to improve revenue capture across government systems.<\/p>\n
The Social Health Authority (SHA) also became a focal point of debate, with MPs demanding accountability on enrolment, contributions, and benefit distribution.<\/p>\n
Mp John Chikati questioned the sustainability of the programme given the large enrolment figures but limited active contributors.<\/p>\n
\u201cOver 27 million have registered for SHA. We need to know who has benefited. Out of the 27 million enrolled, who is paying premiums?\u201d he asked.<\/p>\n
In response, the Treasury acknowledged that SHA enrolment stands at over 27 million Kenyans, with about 5 million active contributors.<\/p>\n
However, Mbadi conceded that detailed beneficiary data is not fully consolidated within Treasury.<\/p>\n
\u201cWe may not have all the figures here, but the SHA Board can provide them. We need to allocate more resources to primary healthcare,\u201d he said.<\/p>\n
Despite concerns, the National Treasury highlighted progress in healthcare reforms, noting improved infrastructure and staffing under universal health coverage.<\/p>\n
The government confirmed that 107,831 Community Health Promoters have been deployed and 228 Primary Healthcare Networks established across the country as part of efforts to strengthen frontline healthcare delivery.<\/p>\n
Mp Naisula Lesuuda raised concerns over pending bills and questioned whether education capitation should be treated as a first charge on the Exchequer.<\/p>\n
Mbadi attributed accumulated arrears to historical exchequer delays but insisted that the government had made progress in stabilising payments.<\/p>\n
\u201cWe have been working over the past two financial years to ensure disbursements are up to date. Payments to counties, NG-CDF and NGAAF are almost current,\u201d he said.<\/p>\n
He also confirmed continued investment in education through teacher recruitment and internship programmes, including plans to hire 24,000 intern teachers.<\/p>\n
Mp Japheth Nyakundi questioned the effectiveness of the Electronic Government Procurement (EGP) system.<\/p>\n
Mbadi defended its rollout, stating that adoption has significantly improved across government institutions.<\/p>\n
\u201cWe started slow, but today almost the entire government has onboarded EGP. Most MDAs have trained personnel using the system,\u201d he said.<\/p>\n
He also disclosed plans for an integrated county revenue collection system developed through the Intergovernmental Budget and Economic Council (IBEC) to harmonise manual and digital revenue systems.<\/p>\n
Committee Vice Chair Robert Pukose sought clarity on the implementation of the Single Treasury Account (STA), citing audit concerns.<\/p>\n
Mbadi confirmed that reforms are ongoing, noting improved coordination in cash management but acknowledging that full consolidation is still in progress.<\/p>\n
Responding to further questions from Atandi, the CS disclosed that the Contingency Fund had not been utilised in the last financial year.<\/p>\n
\u201cThis year we have added more funds. We have not approved the use of Article 223 since the House approved the Supplementary Estimates I,\u201d he said.<\/p>\n
Mbadi defended Public-Private Partnerships (PPPs) as a key pillar in financing infrastructure without overburdening public debt.<\/p>\n
He cited ongoing projects including the Nairobi Expressway Lot 3, Galana Kulalu Food Security Project, Menengai geothermal expansion, and annuity road programmes.<\/p>\n
He said PPPs remain central to reducing pressure on public borrowing while accelerating infrastructure delivery.<\/p>\n
The Treasury projects Kenya\u2019s economy will grow by 5.0 percent in 2026 despite global economic shocks, including rising oil prices and geopolitical tensions.<\/p>\n
Mbadi said the FY 2026\/27 budget is anchored on BETA\u2019s five pillars\u2014agriculture, MSMEs, housing, digital economy, and healthcare.<\/p>\n
Key reforms include expansion of SHA coverage, digitisation of land records under Ardhi Sasa with over 1 million title deeds issued, expansion of fibre optic infrastructure to over 80,000 kilometres, creation of 404 digital hubs, and training of over 1.5 million youth under the Ajira programme.<\/p>\n
\u201cWe remain committed to growth-supportive consolidation while ensuring resources reach priority sectors that directly impact citizens,\u201d Mbadi told the committee.<\/p>\n
The Budget and Appropriations Committee has concluded scrutiny of sectoral allocations and is expected to table its report in the National Assembly next week.<\/p>\n
Mbadi\u2019s defence underscores a government attempting to balance fiscal consolidation with rising public demands for relief from taxation, accountability in spending, and stronger protection of household incomes in an economy still under pressure.<\/p>\n","protected":false},"excerpt":{"rendered":"
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