Kenya’s digital economy has been named among the government’s top spending priorities for the 2027/28 financial year, as the National Treasury begins its annual budget formulation process.
Treasury Cabinet Secretary John Mbadi launched FY2027/28 and medium-term budget preparation process at the Kenyatta International Convention Centre in Nairobi, bringing together Parliament, principal secretaries, development partners, private sector representatives and civil society to begin shaping the country’s next budget cycle.
The inclusion of the digital economy signals continued government focus on ICT infrastructure and services, although no new funding allocations have yet been announced.
Mbadi said the budget will be anchored on the Bottom-Up Economic Transformation Agenda, Vision 2030 and the Fourth Medium-Term Plan, with the digital superhighway and creative economy named alongside agriculture, micro, small, and medium enterprises, affordable housing and universal health coverage as central spending priorities.
“We are launching this process well ahead of the statutory deadlines to allow sufficient time for careful prioritisation, rigorous scrutiny and meaningful engagement with stakeholders across the country,” Mbadi said.
He added the government will pursue fiscal discipline, value-for-money budgeting and evidence-based spending as it works to narrow the budget deficit, with the process brought forward to allow scrutiny ahead of Kenya’s general election in August 2027.
While the digital economy’s inclusion is part of the routine budget cycle and comes without specific funding allocations, it provides an early signal of where government-backed technology initiatives may receive attention over the medium term.
For start-ups, ICT firms and companies building digital public services, a clearer picture of government investment will only emerge once the budget policy statement and subsequent spending estimates are published.
Beyond identifying the digital economy as a priority, Treasury outlined reforms aimed at modernising how public funds are planned, managed and monitored.
Chief among them is the rollout of e-government procurement, a platform designed to digitise procurement and give suppliers a more streamlined route to participating in public tenders, while improving transparency and reducing paperwork.
Treasury also plans to advance the Treasury Single Account, adopt accrual accounting and introduce zero-based budgeting, alongside the digitisation of pension administration and greater use of technology to improve tax compliance.
Mbadi said the latter would be pursued without introducing new tax measures, adding the government could collect more revenue “if everyone is paying”.
National Treasury principal secretary Chris Kiptoo said the government remains committed to macroeconomic stability while protecting priority development programmes, pointing to stronger domestic revenue mobilisation, tighter expenditure controls and improved efficiency in public investment as key pillars.
The budget planning process begins as the government balances pressure to raise revenue, manage public debt and improve spending efficiency, with the Treasury projecting the economy to grow by at least 5.3 percent over the medium term.
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