Kenya Opens Budget Planning With the Digital Economy High on the Agenda

Kenya’s digital economy budget agenda has received fresh backing after the National Treasury identified digital transformation as one of its priority areas while launching preparations for the country’s 2027/28 budget.

Speaking during the launch of the 2027/28 budget formulation process at the Kenyatta International Convention Centre (KICC), Treasury Cabinet Secretary John Mbadi said the government will focus on fiscal discipline, value-for-money budgeting and evidence-based spending as it works to narrow the budget deficit.

Alongside agriculture, micro, small and medium-sized enterprises (MSMEs), affordable housing and universal health coverage, Mbadi named the digital economy as one of the government’s key priorities for the next financial year.

While the announcement was part of the annual budget planning cycle, it also offers an early indication of where government-backed technology initiatives could receive attention over the medium term.

The budget formulation process marks the beginning of developing Kenya’s 2027/28 budget and the medium-term fiscal framework, which will determine government spending priorities and revenue targets over the coming years.

The exercise brings together Parliament, principal secretaries, development partners, private sector representatives and civil society to shape the country’s expenditure plans before the final budget is presented.

For the technology sector, the inclusion of the digital economy alongside other national priorities suggests that digital public infrastructure remains part of the government’s broader economic agenda.

Although Treasury did not announce new funding allocations, placing the digital economy among the priority sectors is notable as Kenya continues expanding digital services across government and the wider economy.

The country’s digital agenda spans online public services, digital payments, connectivity, support for innovation, and technology adoption by businesses.

For startups, ICT firms and companies building digital public services, future budget allocations will provide a clearer picture of where government investment may be directed once the spending estimates are released.

Beyond identifying priority sectors, Treasury outlined several reforms aimed at modernising public financial management.

Among them is the rollout of e-Government Procurement (e-GP), a platform designed to digitise government procurement processes. Moving procurement online has the potential to improve transparency, reduce paperwork and give suppliers a more streamlined way of participating in public tenders.

Treasury also plans to advance implementation of the Treasury Single Account (TSA), adopt accrual accounting and introduce zero-based budgeting.

Together, these initiatives form part of a wider effort to strengthen how public funds are planned, managed and monitored through digital financial systems and more data-driven budgeting.

The budget planning process begins at a time when the government is balancing pressure to raise revenue, manage public debt and improve spending efficiency.

National Treasury Principal Secretary Chris Kiptoo said the government remains committed to maintaining macroeconomic stability while protecting priority development programmes.

He said the approach will rely on stronger domestic revenue mobilisation, tighter expenditure controls, improved efficiency in public investment and better value for public spending.

For Kenya’s technology ecosystem, the next milestones will be the publication of the Budget Policy Statement and subsequent budget estimates, which will reveal how much funding is earmarked for digital economy programmes, government technology projects and ICT-related initiatives.

Until then, the launch of the 2027/28 budget process offers an early view of the administration’s priorities, with digital transformation positioned alongside sectors expected to support economic growth and public service delivery.

Download the free Kaspersky SMB Cybersecurity Guide here to learn how businesses can move beyond traditional antivirus and build a more resilient approach to cybersecurity.