Treasury Cabinet Secretary John Mbadi has acknowledged that the current budget has been prepared under significant economic pressure, citing external shocks, revenue underperformance and rising inflation as key challenges shaping the fiscal plan.

Speaking during an interview with a local television station on Thursday, June 11, 2026, Mbadi said there are no easy choices in the current financial year, noting that the environment is far more complex compared to previous years.

“There is no easy budget. This year’s budget is even more challenging because it is informed by a major external shock, underperformance in revenue collection and rising inflation,” he said.

He added that unlike in previous periods, when inflation was relatively contained, the current budget has been prepared in an atmosphere of heightened global and domestic uncertainty.

Budget shaped by global shocks

Mbadi noted that global developments, including tensions in the Middle East, have had a direct impact on economic planning, particularly through rising energy costs and disrupted supply chains.

He said these external pressures have made it difficult for governments to predict revenue flows and manage spending priorities effectively.

Revenue pressure and fiscal constraints

The Treasury CS also pointed to underperformance in revenue collection as a key concern, saying it has further constrained government spending plans.

He contrasted the current situation with previous years, noting that fiscal conditions had been relatively more stable.

Kenyans to focus on revenue measures

Mbadi further observed that modern budget presentations are now closely watched by citizens, who are keen to understand revenue measures, expenditure priorities, and overall economic direction.

He said today’s budget environment is more transparent and demanding, with fewer surprises expected compared to past decades.

“Today is not in the 1990s. Kenyans will be listening to revenue measures, details, budget highlights and estimates. No more surprises,” he said.

Uncertain outlook ahead

The Treasury CS warned that inflation remains a major concern, despite earlier efforts to stabilise prices, adding that global volatility continues to shape domestic economic decisions.

He concluded that the government is preparing the budget in a highly uncertain environment, requiring careful balancing of competing priorities to maintain economic stability while supporting growth.