The FY 2027/28 Budget Process is officially under way. Treasury Cabinet Secretary Hon. FCPA John Mbadi this morning launched the FY 2027/28 and Medium-Term Budget Preparation Process, marking the start of the formulation of Kenya’s next national budget and medium-term fiscal framework.
The launch, held at the Kenyatta International Convention Centre (KICC), drew Hon. Samuel Atandi, CBS, MP, Chairperson of the National Assembly Budget and Appropriations Committee, alongside Principal Secretaries Dr. Chris Kiptoo, CBS (National Treasury), Dr. Bonface Makokha (Economic Planning) and Cyrell Odede (Public Investments and Asset Management).
Accounting officers, development partners, representatives of constitutional commissions, the private sector, academia, civil society, the media and members of the public also attended.
FY 2027/28 Budget Anchored on BETA, Vision 2030 and MTP IV
In his keynote address, CS Mbadi said the FY 2027/28 budget will be anchored on the Bottom-Up Economic Transformation Agenda (BETA), Vision 2030 and the Fourth Medium-Term Plan (MTP IV).
He outlined priority sectors for the coming budget cycle, including agriculture, MSMEs, Universal Health Coverage, affordable housing, and the Digital Superhighway & Creative Economy.
Fiscal Discipline and PFM Reforms in Focus
The Cabinet Secretary emphasized strengthening fiscal discipline through value-for-money budgeting, evidence-based prioritization and sustainable fiscal consolidation as the FY 2027/28 budget process moves forward.
He also pointed to ongoing Public Finance Management reforms as central to the process, including e-Government Procurement (e-GP), the Treasury Single Account (TSA), accrual accounting and Zero-Based Budgeting.
CS Mbadi added that the budget process will place greater emphasis on transparency, public participation, climate-responsive budgeting and social inclusion, so that public resources deliver measurable outcomes for all Kenyans.
Treasury PS: Prudent Fiscal Strategy to Safeguard Stability
Addressing the same event, National Treasury PS Dr. Chris Kiptoo said the government remains committed to a prudent fiscal strategy that safeguards macroeconomic stability while protecting priority development spending.
He said this would be achieved through enhanced domestic revenue mobilisation, rationalised expenditure, stronger spending controls and improved efficiency in public investment, building a more resilient economy over time. The Central Bank of Kenya has similarly flagged macroeconomic stability as a policy priority in recent monetary statements.
What’s Next for the FY 2027/28 Budget Process
The launch marks the formal start of consultations and sector working group engagements that will shape budget ceilings and priorities ahead of the FY 2027/28 Budget Policy Statement.
Stakeholders — including counties, MDAs, development partners and the public — are expected to participate in subsequent public participation forums as the medium-term fiscal framework takes shape.
