National Treasury Cabinet Secretary, Hon. John Mbadi, delivered his first official Budget Day speech on Thursday before the National Assembly under the theme “Stimulating Sustainable Economic Recovery for Improved Livelihoods, Job Creation, and Business and Industrial Prosperity in Line with the Bottom-Up Economic Transformation Agenda.”

In recognition of geopolitical factors and domestic financial challenges facing Kenya, the National Treasury has responded to concerns over unrealistic revenue projections and revised them to align more closely with actual trends. This year’s budget, therefore, places a strong emphasis on easing the tax burden on citizens.

The proposed national budget for the 2025/2026 Financial Year stands at Ksh 4.239 trillion. This comprises Ksh 2.75 trillion in ordinary revenue (most of which will be collected from Income tax at 38.7 per cent), Ksh 576 million in non-tax revenue,Ksh 46.9 billion in grants, and a projected deficit of Ksh 932.2 billion. The plan for deficit financing includes Net Foreign Financing of Ksh 287.7 billion and Net Domestic Financing of Ksh 635.5 billion .