Kenya, Uganda, Rwanda, Tanzania Present 2025/26 Budgets Addressing Debt, Revenue
Kenya, Uganda, Rwanda, Tanzania Present 2025/26 Budgets Addressing Debt, Revenue

Kenya, Uganda, Rwanda, Tanzania Present 2025/26 Budgets Addressing Debt, Revenue

News summary

Kenya's 2025/26 budget, presented by Finance Minister John Mbadi, aims to bolster government revenues to service mounting debt while avoiding direct tax hikes that triggered deadly protests last year. The government plans to broaden the tax base, improve compliance through enhanced powers for the Kenya Revenue Authority, and cut non-essential spending, including implementing an e-procurement system to increase transparency and efficiency. Despite these measures, experts caution that Kenya faces a significant funding gap and challenges in budget implementation, which historically has led to mid-year revisions undermining fiscal credibility. The budget prioritizes fiscal consolidation to reduce public debt vulnerabilities while maintaining essential public services amid economic pressures such as the cost-of-living crisis and high unemployment. Although indirect taxes and increased monitoring of bank accounts and mobile money transactions have drawn criticism for privacy concerns, the government insists these steps are necessary to improve revenue collection and safeguard socio-economic stability. Overall, the budget represents a balancing act between maintaining public support and addressing Kenya's fiscal challenges under President William Ruto's administration.

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