Kenya’s Finance Minister John Mbadi on Thursday unveiled the highly anticipated 2025–26 national budget, outlining the government’s fiscal strategy for the year ahead. The new budget focuses on revenue growth through a broader tax base and improved compliance measures, aiming to strengthen public finances without introducing significant new taxes.
In his presentation, Mbadi emphasized that the government’s primary objective is to reduce the budget deficit to 4.5% of GDP. This approach seeks to strike a delicate balance between managing Kenya’s growing debt burden and addressing increasing public discontent over the rising cost of living. Instead of burdening citizens with additional taxes, the Treasury plans to enhance tax administration, curb evasion, and expand the tax net to include sectors and individuals that have previously gone untaxed.
The budget announcement came against the backdrop of widespread protests that have rocked Nairobi and other major cities in recent days. Demonstrations erupted following the death of blogger and teacher Albert Omondi Ojwang while in police custody, raising concerns over government accountability and human rights. The unrest has amplified public frustration and placed additional political pressure on Mbadi and the Ruto administration as they attempt to reassure Kenyans of the government’s fiscal responsibility and commitment to justice.
Analysts note that while the budget reflects a pragmatic approach to economic challenges, its success will heavily depend on the government’s ability to implement tax reforms fairly and transparently. At the same time, the ongoing protests highlight the volatile political environment in which these financial policies are being introduced.
As Kenya moves forward with its 2025–26 fiscal plan, both domestic and international observers will be closely watching how the government navigates economic management alongside growing demands for social and political reforms.
