Experts raise concern over ambitious 2026/27 budget revenue targets

Hinzugefügt: 2026-05-30

[00:00:00]Economic experts are expressing an alarm over the ambitious budget proposals in the 2026-2027 budget estimates. This is after cabinet secretary for national treasury John Badi warned that the projected 3.6 trillion shilling revenue target may not be achieved due to heightened geopolitical activity. CS Badi has also on several occasions termed the budget as inflexible due to the compelling expenses and debt obligations. Economic experts, however, say there is room for a trade-off that could help the government live within its means. Jimmy Mbogo reports.

[00:00:38]>> The 4.82 trillion shillings budget for the coming financial year was said to be financed through a 3.63 trillion shillings revenue including taxes and appropriations in aid in name. Out of this, ordinary revenue is projected to account for 2.99 trillion shillings up from the current year's 2.78 trillion target.

[00:01:00]But it is this revenue that the national treasury now says might not be realized throwing the fate of the country's budget in jeopardy. Badi saying the ongoing geopolitical activities could hinder the government's ability to collect the targeted revenue.

[00:01:15]>> If you look at 2026-27 budget, you'll notice that in our projection of 3.6 trillion 3.63 trillion, which is rarely achievable.

[00:01:27]And with the dynamics, the economic shocks that we are facing as a a country and globally, we are not even likely to collect the 3.63 >> An admission that has seen economic experts now call for a downward revision of the budget to avoid burdening Kenyans with additional borrowing which continues to constrain the country's fiscal space.

[00:01:49]>> Budgets are all about choices, right? So we are deciding between a choice A and a choice B on the revenue side but also on on expenditure side. So there's always room for a discussion on what trade-offs we can make that could save us some money or reduce the pressure uh for the need for more uh raising measures uh on revenue.

[00:02:05]>> But, CS Machogu says the country's budget is inflexible with nowhere to cut, citing debt servicing, salaries, transfers to counties, and other compelling expenses that have to be met.

[00:02:17]>> You can hear teachers, principals are still making noise. JSS is 31 billion.

[00:02:22]You have 7 billion for free primary.

[00:02:25]Uh I can go on and on. I'm just giving you a tip of uh what is uh happening.

[00:02:31]That is why this budget, even if you shout at me that I should cut the budget down, I have nowhere to cut.

[00:02:39]>> With the government set to finance nearly 90% of the budget deficit from domestic borrowing, experts warn that this could further curtail credit to the private sector, limiting economic activity. They propose halting of non-priority project expenditure, total eradication of duplicity in government, and further cutbacks on travel and hospitality expenditure to cut down the administration costs.

[00:03:03]>> Uh the discretionary items, the expenditure that is going to the national government, the ministries, departments, and agencies. So, I think that is an area that uh realistically the authorities, the government, cannot be able to reduce it.

[00:03:20]>> A third of our budget is spent through state corporations.

[00:03:23]And um there's been definitely a good effort to try and evaluate which of these state corporations are just a burden to the taxpayer.

[00:03:33]>> Jimmy Bogon, Citizen TV, Nairobi.