Treasury Cabinet Secretary John Mbadi has announced plans to introduce a Planning Bill in 2026 to strengthen Kenya’s national planning framework and improve the link between development priorities and budget allocation.
Speaking before the presentation of the 2026/27 Budget Statement, Mbadi said Kenya lacks a standalone law governing national planning despite having legislation on public finance management, procurement and asset management.
He said the absence of a formal planning framework has contributed to inefficiencies in public spending by weakening coordination between policy objectives and budget implementation.
The proposed legislation will provide a legal structure for setting and monitoring national development priorities, helping to ensure that government budgets are aligned with long-term economic and social goals.
The proposed Planning Bill comes at a time when the government is rolling out its KSh4.84 trillion budget for the 2026/27 fiscal year, a spending blueprint that combines ambitious expenditure plans with a considerable financing gap.
The legislation is expected to strengthen Kenya’s public finance governance framework by introducing a formal legal basis for national planning, complementing existing laws on budgeting, procurement and expenditure oversight.
Mbadi defended the budget process, saying the Treasury conducted extensive consultations across the country and incorporated recommendations from citizens, youth representatives and key economic sectors.
He said the government had gone beyond the minimum legal obligations on public participation to ensure the budget reflects public priorities while promoting transparency and accountability.
Mbadi emphasized that the budget was the product of a months-long process that began in September last year, incorporating budget review papers, policy and fiscal planning documents, parliamentary deliberations and public participation forums to ensure broad stakeholder involvement in shaping the final spending plan.
He noted that public participation involved countrywide engagements across Migori, Kakamega, Eldoret, Nakuru, Embu, Kiambu, Kajiado and Kilifi.
The consultations also brought together youth representatives, informal sector participants, boda boda operators and mitumba traders.
Addressing the National Assembly during the budget presentation, Mbadi noted that the 2026/27 budget will prioritise the Bottom-Up Transformation Agenda, focusing on private sector-led growth, job creation, better public services, fiscal sustainability and economic resilience.
” The budget for financial year 2026/2027 will prioritize various interventions under the bottom-up transformation agenda that promotes private sector-led growth, expands employment opportunities, and enhances deliverable public services while preserving fiscal sustainability and building resilience against the emerging economic challenges,” said Mbadi.
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