National Treasury Cabinet Secretary John Mbadi has declared the 2025/26 national budget a significant departure from past practices, introducing far-reaching reforms aimed at promoting fiscal responsibility, transparency, and efficiency. Speaking ahead of the budget presentation in Parliament, Mbadi highlighted the adoption of a zero-based budgeting approach, a method that requires every Ministry, Department, and Agency (MDA) to justify their expenditures from the ground up.
“This year, every Ministry, Department, and Agency had to justify their budget from scratch. It is no longer about taking last year’s figures and adding a markup,” Mbadi stated during an interview with Citizen TV.
This strategic shift abandons the traditional incremental budgeting model in favor of a system designed to curb pilferage and inefficiencies in public spending. According to Mbadi, the new approach aligns with ongoing policy reforms in procurement, asset management, pensions, human resources, budgeting, and revenue collection—all aimed at ensuring value for money in government expenditure.
Mbadi emphasized that the reforms are not short-term political gestures but long-term structural changes meant to outlive his tenure. “This is something that will stand the test of time… I will have set a foundation upon which my successor and others will build to have a prosperous Kenya,” he said.
In response to last year’s nationwide protests against the Finance Bill, the Treasury adopted a more inclusive and transparent process. Mbadi noted that public barazas and stakeholder meetings were held to explain the budget and its associated revenue measures.
For the 2025/26 fiscal year, the government plans to spend over Sh4.2 trillion, funded through a combination of debt, grants, service charges, and ordinary revenue. Revenue is projected at Sh3.39 trillion, with Sh2.84 trillion expected from ordinary revenue sources, boosted by ongoing tax reforms.
Expenditure will include Sh3.1 trillion for recurrent costs, Sh725.1 billion for development projects, and Sh436.7 billion in county transfers.
Mbadi reiterated his commitment to prudent resource management: “The Treasury belongs to the people of Kenya. The money we manage is theirs. Our role is to steward these resources with integrity and in the public interest.”
