NAIROBI, June 12 (Xinhua) -- Kenya has unveiled a 4.8 trillion shillings (about 37 billion U.S. dollars) national budget for the 2026/2027 fiscal year to sustain growth despite global uncertainties.
Kenya's National Treasury Cabinet Secretary John Mbadi presented the budget statement on Thursday before the National Assembly in the capital, Nairobi.
According to Mbadi, the measures would build resilience amid heightened global uncertainty arising from the ongoing conflict in the Middle East.
Mbadi noted that Kenya's economy remains resilient, recording an average growth rate of 5 percent between 2022 and 2025, outperforming the global average of 3.4 percent and Sub-Saharan Africa's 4.1 percent.
He observed that Kenya's 2026 economic outlook had been downgraded to 5 percent from an initial projection of 5.3 percent, reflecting the adverse domestic impact of the ongoing conflict in the Middle East.
Mbadi projected that the country's fiscal deficit will decline gradually from 5.5 percent gross domestic product (GDP) in the 2026/2027 financial year to 3.3 percent by fiscal year 2028/2029.
The government targets about 28 billion dollars in total revenue, equivalent to 17.4 percent of GDP, he said, noting that the projection includes 23 billion dollars in ordinary tax revenue, alongside non-tax revenues and external grants.
The proposed budget showed that the total expenditure for the fiscal period is projected at 37 billion dollars, equivalent to 23.2 percent of GDP.
To accelerate agricultural transformation, Mbadi allocated 494 million dollars to priority programs, including subsidized input financing. Additionally, he directed 63.3 million dollars toward the expansion of the blue economy and the fisheries subsector.
To accelerate the construction of affordable housing, drive urban development, and create jobs, Mbadi proposed an allocation of 1.1 billion dollars, while 1.36 billion dollars were earmarked for the health sector to expand medical access and strengthen essential public health services.
In addition, the cabinet secretary set aside 1.69 billion dollars to expand and maintain roads, railways, seaports, and airports. He also allocated a record 6.05 billion dollars to ensure quality education.
Mbadi noted that the budget focuses on easing the tax burden on Kenyans by widening the taxpayer base and enhancing tax compliance. ■