Kenya Unveils KSh 4.29 Trillion Budget, Avoids New Taxes Amid Public Pressure

Nairobi, Kenya – Kenya’s Finance Minister, John Mbadi, on Thursday unveiled the national budget for the 2025/26 financial year, amounting to KSh 4.29 trillion (approx. $33.27 billion), with a focus on stabilizing the economy without introducing new taxes. The move is a clear shift in strategy following widespread protests last year that forced the government to shelve a proposed KSh 346 billion tax hike

Addressing Parliament, Mbadi emphasized that the government will prioritize fiscal discipline while protecting citizens from further economic strain. “This year’s budget reflects our commitment to responsible spending and fairness. We are not introducing any new taxes, but rather focusing on expanding our tax base and improving compliance,” he said.

The budget projects a fiscal deficit of 4.8% of GDP, down from 5.7% last year, signaling a gradual path toward fiscal consolidation. To meet its revenue targets, the Kenya Revenue Authority (KRA) will be granted increased access to financial data from individuals and businesses—a move that has sparked privacy concerns but is seen as vital to curbing tax evasion.

Key sectors expected to benefit from the new budget include education, healthcare, infrastructure, and social protection. The government also plans to streamline expenditures across ministries and reduce non-essential spending.

While the lack of new taxes has been welcomed by many Kenyans, economic analysts warn that the government’s revenue goals are ambitious and may be difficult to achieve without significant structural reforms.

Kenya is also counting on continued support from international lenders, including the International Monetary Fund (IMF), to shore up its economic position. With growing public scrutiny and high debt levels, the coming year will test the government’s ability to balance public expectations with fiscal realities.