Treasury CS John Mbadi on Thursday presented the 2026/27 budget alongside the Finance Bill 2026, setting out a Sh4.82 trillion spending plan against projected revenue of Sh3.63 trillion. The gap leaves a deficit of about Sh1.146 trillion. The proposals combine sector allocations with tax changes that will now move through Parliament before implementation.
The budget gives large allocations to education, health, roads and agriculture, while the Finance Bill proposes changes on phones, gambling, mitumba and selected health products. Some measures increase or shift taxes, while others remove VAT or excise on specific goods.
| Item | Proposal or allocation |
|---|---|
| Total budget | Sh4.82 trillion |
| Projected revenue | Sh3.63 trillion |
| Fiscal deficit | Sh1.146 trillion |
| Education | Sh784.5 billion |
| Health | Sh177.2 billion |
| Roads | Sh220.4 billion |
| Agriculture and Blue Economy | Sh72.2 billion |
| Social protection | Sh41.8 billion |
| Counties equitable share | Sh428 billion |
| Mobile phones | 25% excise duty at activation point |
| Betting winnings | 20% withholding tax |
| Dialysers | VAT exemption proposed |
| Mitumba | VAT at importation, local resale exempt |
| Bottled water | Removal of Sh6.41 excise duty per litre proposed |
The proposals are expected to shape debate on household costs, business compliance and public spending priorities in the new financial year.
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