National Treasury CS John Mbadi (centre), National Assembly Budget and Appropriations Committee chair Samuel Atandi (right) and Finance and Planning Committee chair Kuria Kimani on June 11, 2026. [Boniface Okendo, Standard]
The government has defended its fiscal strategy, saying the national budget deficit remains a concern but is gradually declining compared to last year, even as Treasury introduces alternative financing measures to bridge the gap.
Speaking after this year’s budget estimates, Majority Leader Kimani Ichung’wah said the deficit, though significant, was being managed through innovative financing models and tighter fiscal planning.
“The high budget deficit is not without caution that even with this big budget deficit there are means to bridge that. It has been there but it is coming down compared to last year's. Our aim to bring it down is the other alternative means to finance the budget the national treasury and government has put in place,” Ichung’wah said.
He noted that the government was increasingly relying on mechanisms such as the National Infrastructure Fund, which he said was helping finance key projects off-budget, reducing pressure on traditional expenditure lines.
“The National Infrastructure Fund is revealing a huge part of what we would have funded through the budget by funding them off budget,” he added.
Ichung’wah further said the budget would deliver on key government promises, including education, health, affordable housing and infrastructure development, insisting that no pledge to Kenyans would be left unfulfilled.
He also defended proposed revenue measures contained in the Finance Bill, saying they were designed to balance revenue generation with the need to ease the tax burden on citizens. He added that a proposed tax exemption for Kenyans earning below Sh30,000 would be tabled in Parliament following presidential direction.
Saku MP Dido Rasso said the proposals had simplified the budgeting process and provided clarity on government priorities, particularly in agriculture, education and security.
“The issue of food security is critical. A country that cannot feed itself cannot move forward. We have seen increased focus on fertilizer, irrigation and climate change mitigation,” Rasso said.
He added that the government had increased investment in education, noting that funds had been allocated to support primary, secondary and technical institutions, including TVETs and KMTC, to expand access to training and skills development.
Rasso, however, warned that the budget deficit, estimated to exceed Sh500 billion, remained a major concern that required sustainable financing solutions.
“We must ask ourselves how we will finance this gap. We expect the government to be clear on spending and ensure resources are not misused. We must cut our cloth according to our size,” he said.
Minority leaders also weighed in, with Suna East MP Junet Mohammed describing the budget as detailed and focused on priority sectors, saying funds had been directed where they were most needed.
“The CS has gone to length to explain what is contained in the budget and Finance Bill. They have put money where the mouth is, especially in infrastructure, education and logistics,” Junet said.
He added that while the proposals could improve service delivery if implemented effectively, concerns over borrowing remained, stressing that debt sustainability must remain a key focus.