The National Treasury this week opened Kenya’s most ambitious public budget consultation exercise to date, launching simultaneous county-level forums as part of the preparation of the 2027/28 national budget — the first full-year budget to be prepared with the 2027 general election explicitly in view and one that will test the government’s capacity to balance IMF programme commitments against the political pressures of an approaching electoral cycle.
Cabinet Secretary for National Treasury John Mbadi, who oversees an economy that grew at 5.1 per cent in the first quarter of 2026 but continues to face a debt servicing burden consuming 58 per cent of ordinary revenue, said the forums are a constitutional obligation that his ministry intends to take seriously rather than perform perfunctorily. “The era of budgets written in Treasury boardrooms and announced to citizens as fait accompli is over,” Mbadi told the opening forum in Kisumu. “Every shilling the government spends belongs to Kenyans. They have a right to determine its purpose.”
The Forum Structure
Forty-seven simultaneous county forums, running through July and August, will each hear testimony from civil society organisations, business groups, farmer cooperatives, youth associations, professional bodies, and individual citizens. The Treasury has published a 32-page consultation guide in English, Kiswahili, and 14 other local languages, available on e-Citizen and through county government offices. Citizens without internet access can submit written memoranda at sub-county Treasury offices or participate in the in-person forums.
A national synthesis forum will be held in Nairobi in September, drawing together rapporteurs from all 47 county consultations, before the National Treasury presents its Budget Policy Statement to Parliament in October. For the first time, the ministry has committed to publishing a public report documenting which consultation inputs were incorporated into the final budget and explaining the reasoning behind those that were not — an accountability innovation recommended by the International Budget Partnership in its 2025 Open Budget Survey, in which Kenya scored 52 out of 100.
“The Open Budget Survey score tells us we have work to do on participation and oversight,” said Parliamentary Budget Office Director Phyllis Makau. “These forums are a meaningful step if the Treasury follows through on the feedback loop. If they do not, this will be remembered as the most expensive public relations exercise in fiscal history.”
Priority Issues Emerging
Even in the early sessions, clear priority themes have emerged from citizen testimony. Healthcare — specifically the troubled transition from NHIF to the Social Health Authority — dominated the Kisumu, Mombasa, and Nakuru forums, with participants demanding additional funding to stabilise SHA’s operations, clear outstanding payments to hospitals that have been operating without reimbursements since January, and reconsider the co-payment structures that have created barriers to access for low-income households. Health sector advocates are pushing for the health budget to increase from its current 6.8 per cent of national expenditure to the Abuja Declaration target of 15 per cent.
Agricultural inputs and climate adaptation were the dominant concerns in county forums across the Rift Valley, Eastern, and North Eastern regions, where farmers remain acutely exposed following the El Niño disruption of 2023-24 and subsequent irregular rainfall patterns. Delegates at the Garissa forum specifically requested a tripling of the National Drought Management Authority’s budget and called for a permanent insurance scheme for pastoralist livestock losses. Education — particularly the funding gap in the Competency Based Curriculum transition and inadequate ECDE infrastructure — was raised consistently at nearly every forum in the first week of consultations.
The IMF Constraint
What citizens are demanding and what the fiscal framework can accommodate are not the same conversation. Kenya’s Extended Credit Facility with the IMF, currently in its fifth review, imposes a primary balance target and caps on non-concessional borrowing that severely limit the government’s room for new spending commitments. Treasury officials acknowledge privately that the budget consultations will produce a wish list that far exceeds available resources, and that the political art lies in communicating those limitations without alienating the constituencies whose votes will determine the 2027 outcome.
The Kenya Revenue Authority’s ongoing enforcement drive — targeting VAT compliance, digital economy taxation, and undeclared offshore assets under the Common Reporting Standard — is expected to yield additional revenue of between Ksh 80 billion and Ksh 120 billion in the 2027/28 year, partially widening the fiscal space. How that additional revenue is deployed — whether towards debt reduction, as the IMF prefers, or towards public services, as citizens demand — will be the defining political and economic choice of Kenya’s next budget cycle.










