The Cabinet has approved the 2026/27 financial year budget, totalling KSh4.7 trillion, as part of measures to accelerate economic growth under the Kenya Kwanza administration.

In a statement released on Tuesday, February 10, 2026, the Cabinet disclosed that the budget projects total revenues of Ksh3.53 trillion against total expenditure of Ksh4.7 trillion.

“The Budget projects total revenues of Ksh3.53 trillion against total expenditure of Ksh4.7 trillion. Expenditure allocations comprise Ksh3.46 trillion for recurrent spending,” the statement read.

County allocations

County governments are set to receive Ksh495.7 billion, including Ksh420 billion as an equitable share and Ksh15.2 billion for the Equalisation Fund, alongside an additional Ksh75.7 billion proposed under the County Governments Additional Allocation Bill.

“Ksh749.5 billion for development, Ksh495.7 billion in transfers to county governments, and Ksh2 billion for the Contingency Fund. Under the Division of Revenue Bill, 2026, county governments will receive Ksh420 billion as an equitable share, representing 21.9 per cent of the most recent audited revenue in line with constitutional requirements, and Ksh15.2 billion for the Equalisation Fund,” the Cabinet stated.

Economic growth projections

The Cabinet further stated that the macroeconomic outlook remains positive, with a GDP growth projected at 5 per cent in 2025 and 5.3 per cent in 2026.

“The macroeconomic outlook remains positive, with GDP growth projected at 5 per cent in 2025 and 5.3 per cent in 2026, supported by favourable weather, improved agricultural productivity, climate-smart investments, and continued implementation of the Bottom-Up Economic Transformation Agenda,” the statement read.

According to the Cabinet, the 2026 Budget Policy Statement, themed “Accelerating Gains under the Bottom-Up Economic Transformation Agenda for Inclusive and Sustainable Growth,” marks a transition from fiscal stabilisation to scaled-up investment.

“The 2026 Budget Policy Statement, themed ‘Accelerating Gains under the Bottom-Up Economic Transformation Agenda for Inclusive and Sustainable Growth’, marks a transition from fiscal stabilisation to scaled-up investment to drive the next phase of economic growth,” the Cabinet stated.

“Priority investments target education, health, energy, infrastructure, agriculture, social protection, and national security, alongside reforms in public finance management, digitisation, State-owned enterprises, and public-private partnerships,” the statement added.

The Cabinet has forwarded the budget to Parliament to guide the Government’s fiscal strategy, setting the stage for detailed consideration and approval of allocations and revenue measures in line with constitutional requirements.