The launch of Public Sector Hearings on the Proposed FY 2026/27 and Medium Term Budget
The National Treasury & Economic Planning CS Hon. FCPA John Mbadi Ng’ongo, EGH, today officially presided over the launch of Public Sector Hearings on the Proposed FY 2026/27 and Medium Term Budget at the Kenyatta International Convention Centre (KICC), marking the start of an important three-day process to shape Kenya’s FY 2026/27 Budget.
The event brought together senior government leadership, including:
● Dr. Chris Kiptoo, CBS – Principal Secretary, The National Treasury who made a presentation on: " Macroeconomic Outlook for 2026/27 and Medium Term Budget" emphazising the need to strenghthen fiscal sustainability through reforms that promote inclusive growth and job creation.
● Dr. Bonface Makokha – Principal Secretary, Economic Planning
● Mr. Cyrell Wagunda Odede – Principal Secretary, Public Investment & Asset Management
● Hon. Samuel Atandi Chairperson, Budget & Appropriations Committee, National Assembly & Alego Usonga MP
Hon Mbadi underscored that the Public Sector Hearings are not merely a procedural step, but a constitutional expression of transparency, accountability, and public participation.
“These hearings provide all stakeholders an opportunity to shape sectoral budget proposals that will inform the 2026 Budget Policy Statement and other fiscal documents submitted to Parliament,” he said.
CS Mbadi highlighted Kenya’s strong performance amid global economic uncertainty:
● GDP Growth: 4.8% projected in 2025
● Inflation: 4.6% (October 2025), down from 9.6% in 2024
● 91-Day T-Bill Rate: 7.9%, down from 15%
● Private Sector Credit: 5% growth (Sept 2025)
● Forex Reserves: USD 11.9B (4.9 months of import cover)
The economy is projected to expand by 4.9% in 2026, supported by prudent fiscal management and a resilient services sector.
The CS, however, emphasized the need to remain alert to domestic risks, including climate-related shocks.
Fiscal Discipline & Reform
Following the rejection of the 2024 Finance Bill, the government implemented targeted austerity measures, prioritizing essential sectors such as education and health.
Sector Working Groups will continue evaluating submissions to ensure strict adherence to fiscal limits.
This year’s draft proposals are anchored on Zero-Based Budgeting (ZBB) and align with:
● Fourth Medium Term Plan (MTP IV)
● Bottom-Up Economic Transformation Agenda (BETA)
They focus on five strategic pillars:
● Agricultural Transformation
● MSME Growth
● Housing & Settlement
● Healthcare
● Digital Infrastructure & the Creative Economy
Hon Mbadi reaffirmed the government’s commitment to a participatory, citizen driven budgeting process, noting that the reforms underway will strengthen service delivery, enhance efficiency, and bolster investor confidence.
The hearings continue at KICC until 21st November 2025, with Sector Working Groups and members of the public presenting proposals that will shape Kenya’s FY 2026/27 Budget