Kenya’s economy is projected to grow by 5.3 percent in 2026, up from 4.7 percent in 2024, according to the Budget and Appropriations Committee of the national parliament.
The committee in a relevant meeting said the growth will be driven by increase in government spending on development and efforts to improve revenue collection and fiscal discipline during the year.
The committee noted that the growth will be supported by stronger output in agriculture as well as recovery in sectors such as construction, tourism, transport and financial services.
Government revenue mobilisation is also expected to improve significantly in the next financial year, the committee added.
Total revenue for the 2026-27 financial year is projected to reach Sh3.588 trillion, equivalent to 17.1 percent of Gross Domestic Product (GDP).
According to the committee, the projected growth in revenue reflects ongoing reforms in tax administration, increased compliance and the digitisation of revenue collection systems.
“These reforms are aimed at strengthening Kenya’s fiscal independence while gradually reducing the country’s reliance on borrowing,” the committee noted.
At the same time, the government plans to increase public expenditure to Sh4.74 trillion in the 2026-27 financial year, representing an increase of more than Sh435 billion compared to the previous fiscal year.
The additional spending will mainly target sectors considered critical to economic productivity and citizens’ welfare, including education, healthcare, infrastructure, agriculture and national security, the committee noted.
MG/as/APA