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.