Treasury Cabinet Secretary John Mbadi has defended Kenya's 2026/27 national budget, saying every expenditure included in the spending plan was thoroughly justified before approval under a new budgeting approach. Speaking ahead of the presentation of the KSh4.84 trillion budget, Mbadi revealed that the government adopted zero-based budgeting for the first time, marking a departure from the traditional incremental budgeting system.
According to Mbadi, zero-based budgeting requires all ministries, departments, and agencies to justify their proposed expenditures from scratch rather than relying on previous allocations. He noted that while the new system is still in its early stages, it is expected to improve efficiency and accountability in public spending over the next three years.
The CS highlighted that the review process led to significant adjustments, including reducing the energy sector allocation to KSh35 billion after determining that some projects could be financed through alternative mechanisms such as Public-Private Partnerships and the National Infrastructure Fund.
Mbadi also expressed optimism that improved planning would minimize the need for supplementary budgets in the future, describing them as a sign of weak planning unless caused by unforeseen external shocks.
According to Mbadi, zero-based budgeting requires all ministries, departments, and agencies to justify their proposed expenditures from scratch rather than relying on previous allocations. He noted that while the new system is still in its early stages, it is expected to improve efficiency and accountability in public spending over the next three years.
The CS highlighted that the review process led to significant adjustments, including reducing the energy sector allocation to KSh35 billion after determining that some projects could be financed through alternative mechanisms such as Public-Private Partnerships and the National Infrastructure Fund.
Mbadi also expressed optimism that improved planning would minimize the need for supplementary budgets in the future, describing them as a sign of weak planning unless caused by unforeseen external shocks.
