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The National Treasury has released the draft 2026 Budget Policy Statement, kicking off a crucial public participation window that will determine the nation's spending on everything from healthcare to infrastructure.

The National Treasury has officially invited Kenyans to help craft the nation's economic roadmap for the 2026/27 financial year. In a public notice issued Friday, the Treasury called for submissions on the Draft 2026 Budget Policy Statement (BPS), a foundational document that will steer government taxation and spending priorities.
This call to action is more than a formality; it is a constitutional requirement designed to anchor the national budget in the needs of the people. The BPS sets the stage for the country's financial health, outlining how the government plans to balance a projected KES 4.2 trillion budget against significant economic pressures, including high public debt and the rising cost of living.
The budget formulation process begins as Kenya navigates a complex economic environment. While forecasts predict a steady GDP growth of around 5.0% for 2026, buoyed by a resilient agricultural sector and easing inflation, significant challenges remain. High debt-servicing costs continue to consume a large portion of public revenue, putting a squeeze on funds available for development and essential services.
The previous 2025/26 budget allocated the largest share of funds to education (KES 701 billion), followed by infrastructure and ICT. Analysts will be keenly watching whether these priorities are maintained, or if the government will pivot towards other areas under its Bottom-Up Economic Transformation Agenda (BETA), such as agriculture and support for small enterprises.
The Treasury has emphasized that it is seeking specific, evidence-based proposals from the public, civil society, and private sector players. This is a critical opportunity for citizens to influence policy on matters that directly affect their households and businesses.
Submissions should be detailed and address specific areas of the budget. Key information for participants is as follows:
Following the public participation phase, the final Budget Policy Statement will be presented to the Cabinet for approval before being tabled in Parliament early in the new year. This document will then guide all ministries and government departments as they finalize their detailed budgets.
The coming weeks will reveal the extent to which public input shapes the final budget. As the country strives for fiscal consolidation while protecting its citizens' livelihoods, the balance struck in the 2026 BPS will be crucial for every Kenyan's future.
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