The National Treasury will open the FY 2027/28 and Medium Term Budget preparation process on July 22, 2026, at the Kenyatta International Convention Centre in Nairobi, starting at 8:30 am. The launch marks the first formal step in a cycle that will shape government spending priorities through the 2029/30 financial year.
Constitution Anchors the Process
Treasury conducts the launch under Article 201 of the Constitution and Section 35(2) of the Public Finance Management Act, Cap 412A, provisions that require openness and public involvement in how government raises and spends money. Kenya’s budget calendar treats this launch as the formal starting gun for a cycle that runs annually, moving through formulation, parliamentary approval, implementation, and audit before the next cycle begins.
That calendar has shifted earlier this year compared to recent cycles. The FY 2026/27 process launched on August 25, 2025, while the FY 2025/26 cycle opened even later, on September 9, 2024. Moving the FY 2027/28 launch to July gives ministries, departments, and agencies more room to work through sector hearings and submissions before the fiscal year begins in July 2027.
What Happens on Launch Day
Treasury has structured the event around four segments. Opening remarks come from the Principal Secretary of the National Treasury and the Chairperson of the National Assembly’s Budget and Appropriations Committee, followed by a keynote address and the official launch delivered by the Cabinet Secretary for the National Treasury.
Presentations will cover three areas: highlights of the Fourth Medium Term Plan, known as MTP IV, the macroeconomic outlook for the medium term, and priorities for the FY 2027/28 budget process itself. The event closes with a session on next steps.
MTP IV runs from 2023 to 2027 and anchors government planning in the Bottom-Up Economic Transformation Agenda, the policy framework built around agriculture, the housing and settlement sector, healthcare, the digital and creative economy, and manufacturing. At last year’s launch, Cabinet Secretary John Mbadi described the preparation process as central to keeping economic growth, social development, and public service delivery on track, a framing Treasury has repeated across recent budget cycles.
Public Participation Built Into the Calendar
Treasury has opened the July 22 event to the public, a step it frames as central to transparency in how the budget takes shape. Kenyans can follow proceedings live through the National Treasury’s official social media channels, continuing a practice used in prior launches where sessions streamed on platforms including X, Facebook, and TikTok.
Public participation does not end with the launch. Sector Working Groups will bring together government officials, private sector representatives, and civil society through the months ahead, feeding into hearings where citizens can raise concerns and shape budget priorities before the Cabinet and Parliament finalize spending plans.
A Fiscal Backdrop Shaped by Consolidation
The FY 2027/28 planning cycle begins against a backdrop of continued fiscal consolidation. Treasury’s own projections show total government expenditure declining from 23.0 percent of GDP in FY 2026/27 to 21.3 percent in FY 2027/28, with recurrent expenditure falling even as development spending edges upward, from 3.6 percent of GDP to 3.8 percent over the same period. Ordinary revenue is projected to rise modestly, from 14.3 percent of GDP in FY 2026/27 to 14.7 percent in FY 2027/28, part of a broader effort to narrow the fiscal deficit over the medium term.
Kenya’s economy has held up against a difficult global environment, with growth running between 4.9 percent and 5.0 percent across the first three quarters of 2025, supported by agriculture, an industrial recovery, and continued momentum in services. That resilience gives Treasury a foundation to work from as it opens discussions on where the next budget cycle will direct resources.
Why This Launch Matters
The July 22 event sets the tone for how Kenya allocates public money over the next three fiscal years, decisions that touch everything from county government transfers to how quickly ministries clear pending bills owed to small businesses. For citizens, sector groups, and the private sector alike, the coming weeks offer the earliest window to weigh in before spending priorities harden into law.
