Mbadi: Why 2025/26 budget marks a break from the past

National Treasury Cabinet Secretary John Mbadi has said the 2025/26 national budget is markedly different from previous years, describing it as reform-oriented and designed to enhance accountability, transparency, and fiscal discipline.

Mbadi, who will be presenting his first budget since assuming office, has ushered in a new era of budgeting, tossing aside the traditional, incremental approach.

Speaking to Citizen TV ahead of the highly anticipated presentation in Parliament, Mbadi said this year’s budget is anchored on zero-based budgeting, where allocations are based on the previous year’s budget with minor adjustments.

“This year, every Ministry, Department, and Agency had to justify their budget from scratch,” Mbadi said.

“It is no longer about taking last year’s figures and adding a markup.”

The move, he stated, reflects the government's commitment to address longstanding concerns by Kenyans about pilferage, wastage, and inefficiency in public spending, despite increased revenue collection.

“My attention has been on policy reforms across procurement, asset management, pensions, human resource practices, budgeting, and revenue collection,” the CS said.

“All these combined will help ensure our resources are used effectively, and there is value for money.”

Mbadi said these reforms are designed to outlast his tenure, laying a foundation for future leaders to build upon.

“This is something that will stand the test of time; it is not something that will leave office with me. Once I leave. I will have set a foundation upon which my successor and other people who will come after me will build on to have a prosperous Kenya,” he said.

He acknowledged that last year’s public protests over the Finance Bill reflected a more engaged and alert citizenry.

In response, he said, the Treasury has taken a more inclusive approach this year.

“We had to change how we do things. Kenyans demanded openness and transparency in the budget-making process. This year, we have held public barazas and stakeholder meetings to explain the budget and the Finance Bill.”

Mbadi reiterated his desire to be remembered as the reformer who tackled wastage and corruption in public procurement and played a role in stabilising the economy and managing public debt responsibly.

“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,” he said.

As mandated across the East African Community, Mbadi will unveil the budget highlights and revenue-raising measures for the 2025/26 fiscal year.

The government plans to spend over Sh4.2 trillion, funded through a mix of debt, grants, service charges, and ordinary revenue.

Revenue is projected at Sh3.39 trillion, with ordinary revenue expected to hit Sh2.84 trillion, supported by ongoing tax reforms.

The government plans to spend Sh3.1 trillion on recurrent expenditure, Sh725.1 billion on development, and Sh436.7 billion in county transfers.